Stablecoin Showdown: Hong Kong’s August 1 Law Sparks Frenzy Among Big Players 🚀💰

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  • Hong Kong’s new stablecoin law takes effect August 1, boosting crypto oversight with a sprinkle of magic.
  • JD.com and Yuanbi lead the charge, applying for limited Hong Kong licenses like it’s a treasure hunt.
  • Only the biggest and the boldest are expected to win the stablecoin permits, leaving the little fish to wonder what hit them.

Hong Kong is about to unveil a new law for stablecoins, and it’s as exciting as a chocolate factory opening its doors to the public. The Hong Kong Stablecoin Ordinance will officially take effect on August 1, 2025. This law is a giant leap for the city’s crypto and finance market, promising to turn the financial landscape into a wonderland of digital delights.

JD.com, Yuanbi Among Major Firms Eyeing Hong Kong Stablecoin Permits

When the law comes into force, the HKMA (Hong Kong Monetary Authority) will begin receiving applications to obtain a license. But here’s the twist: it’s believed that initially, only a handful of licenses will be granted. Some insiders whisper that the number of licenses to be issued could be as few as the spots on a ladybug.

Meanwhile, over 40 companies are already sharpening their pencils and preparing to make applications. This is a clear sign that the big players in China are as eager to get their hands on stablecoins as a child is to reach the top shelf for a jar of cookies. JD.com, Standard Chartered, and Yuanbi have already announced their intention to apply, setting the stage for a thrilling competition.

Reports in the industry suggest that most companies are turning to law firms, hoping to ensure their applications are as perfect as a freshly baked pie. The market is so intense that smaller companies are about as likely to get a license as a snail is to win a race against a hare.

Stablecoins are becoming as popular as chocolate in a candy store. Most people see them as the perfect mediator between conventional money and digital assets, useful for trading, lending, or moving money across borders. This new law is expected to give the market a big, juicy boost in Hong Kong.

But not everyone is as optimistic. Qiao Yide, a vice president of the Shanghai Development Research Foundation, advises everyone to keep their feet on the ground. He notes that stablecoins might not significantly reduce the cost of cross-border payments as much as people hope. According to some studies, the actual cost might remain around 1%, which is about as exciting as a cup of lukewarm tea.

Only Big Players Likely to Win HK Stablecoin Permits

Despite the warnings, many companies are still eager to jump into the stablecoin business. Ant International and Ant Digits are also in the race, working on how to scale up their services through stablecoins, like chefs preparing a grand feast.

Alex Zuo, a senior vice president at Cobo, says the demand for licenses is sky-high. He indicates that over 40 businesses have made or are making applications. However, he warns that licenses will probably be granted to the established major players, leaving the smaller fish to swim in the shallows.

Some firms are also on a hiring spree, looking for blockchain professionals like they’re on a treasure hunt. Tech giants in China are determined to secure a license when applications go live in August, as if the future of their companies depends on it.

So why is everyone so eager? There are two main reasons. First, businesses interested in international transfers want to take advantage of stablecoins to handle quick and affordable transactions for their customers. Second, big internet corporations see an opportunity to mint and distribute their own stablecoins, like printing their own money.

But not all companies are serious. Some smaller companies are just riding the stablecoin wave to gain attention, like kids pretending to be superheroes. They announce projects but lack the substance, hoping to boost their share prices or get some hype. According to industry insiders, these companies are more interested in the spotlight than in the actual business.

Stablecoins have become a mainstream component of the crypto economy today, with a market capitalization of $250 billion. Governments around the world are now scrambling to establish regulations, like parents trying to catch up with their children in a game of tag.

As the launch date approaches on August 1, everyone is keeping their eyes open, waiting to see who will receive the first licenses. The race has already started, and Hong Kong is determined to be seen as the leader in safe and regulated crypto finance, like a captain steering a ship through uncharted waters.

 

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2025-07-08 23:47