This stablecoin license in Hong Kong is not a ticket to enter; it is a ticket to a new world—those giants who grab it will feast, while follow-up retail investors will only get soup, and those who miss out may not even touch the ship.
Old Tang analyzes:
In simple terms, Hong Kong is about to issue 'stablecoin issuance licenses'. Giants like JD, Standard Chartered, and Ant Financial, along with more than 40 other companies, are scrambling to get them. But only a few licenses will be issued (in single digits), making it harder than getting into Tsinghua University! What does this indicate? Giants are betting real money on this opportunity, and the wave of compliance is already crashing down!
There may be short-term pain, but long-term it is a super bullish situation! Why?
Giants entering the market = credit endorsement: Long-established companies like Standard Chartered and national-level enterprises like JD and Ant Group are getting involved with stablecoins, which boosts the entire cryptocurrency sector. Previously, your mom thought Bitcoin was a scam; now that Standard Chartered is also issuing 'digital Hong Kong dollars', doesn’t it feel suddenly more credible? This can attract a large amount of traditional big capital that previously dared not enter the cryptocurrency space, such as pensions and funds. With more liquidity, the boat will naturally float higher! You see that in the US, the compliant stablecoin USDC's issuer Circle is rumored to go public, with a valuation skyrocketing to $65 billion! Giants + compliance equals hard currency in the capital market.
Cross-border payments are a real necessity: Giants like Ant Group and JD, which are engaged in e-commerce and payments, are most focused on using stablecoins for cross-border transfers. Just think about how troublesome your current cross-border remittance is? High fees and waiting several days! The giants want to use stablecoins to achieve '10-second arrival, cutting fees by 90%'. If this succeeds, stablecoins will transform from 'trading tools' into 'financial infrastructure', leading to explosive demand!
Tang Seng observes: Payment giants like Lakala have already enabled 5 million POS machines to support stablecoin payments. In the future, swiping a 'digital Hong Kong dollar' for bubble tea may be even more convenient than using WeChat Pay!
Licenses are both a 'tightening spell' and a 'talisman': Hong Kong's requirements are extremely strict—100% reserves, transparent custody, and regular audits. This directly eliminates unreliable, potentially fraudulent small stablecoins. In the short term, some unconventional stablecoins may be eliminated, causing some market pain. But in the long term, those that survive will be the 'regular forces', making the entire market safer and healthier, greatly reducing the risk of retail investors being exploited!
What should we be alert to in the short term?
Too few licenses, giants eat it all: There are only a few licenses; institutions with strong backgrounds like Standard Chartered and Ant Group are more likely to obtain them. Small players and grassroots projects basically have no chance. Stablecoins without licenses may be kicked out of Hong Kong, which could trigger sell-offs in the short term.
Compliance costs are high, and innovation may be 'locked down': The threshold for obtaining a license is too high for small companies to afford. Moreover, the regulations do not allow stablecoins to pay interest, which could limit many DeFi income-generating strategies based on stablecoins, posing a slight short-term negative impact on DeFi.
Tang Seng summarizes:
Bitcoin/Ethereum (BTC/ETH): Long-term bullish! Stablecoins are the main channel for ordinary people to buy cryptocurrencies with fiat. The wider and safer the channel, the more people and money will enter, benefiting core assets like BTC and ETH the most!
Compliant stablecoins: winners take all! With more use cases and explosive demand, they become the faucet.
Centralized exchanges (Binance, OKX, etc.): Accelerating reshuffling! Only exchanges that can support compliant stablecoins can retain users; smaller exchanges will find it increasingly difficult.
DeFi: A bit confused in the short term, searching for new paths in the long term. Not allowing stablecoins to earn interest limits the old strategies. But in the long term, there may be a shift towards compliant real assets on the blockchain.
On August 1st, Hong Kong's new regulations will take effect, and the first batch of 'licensed regulars' will soon be announced! This is not only a life-and-death game for the giants but also the starting gun for a value reassessment in the entire cryptocurrency circle. Old Tang reminds: Pay attention to who gets the licenses, but more importantly, watch how they 'play their cards'—where will the first shot of cross-border payments be fired? Is it in JD's e-commerce? Or is it in Ant Group's remittances? What lies behind this could be clues to the next wave of wealth codes.
Follow Tang Seng, at the first moment of the license's issuance, we will break down the winning strategy! Click on the avatar to follow me, and communicate real-time market trends with over 50,000 cryptocurrency veterans, share strategies, and enjoy fruitful results together? Join the bull market feast! $BTC $ETH #香港稳定币条例
