On August 1st, Hong Kong rolled out a highly anticipated legal framework for fiat-based stablecoins — a major step toward integrating digital assets into the region’s financial system. While the new system introduces stricter rules for stablecoin issuers, the government's recognition of this asset class is a promising sign for investors.
According to Reuters, fintech firms are actively fundraising to capitalize on this shift. Under the new regime, all stablecoin issuers must obtain a license from the Hong Kong Monetary Authority (HKMA), with existing companies given a six-month window to comply. The regulations are expected to cover areas like reserve management, anti-money laundering measures, and redemption protocols.
At least 10 publicly listed Hong Kong fintech companies have raised a combined $1.5 billion since the new rules took effect. The funds are being channeled into stablecoins, blockchain payments, and broader crypto ventures. Notably, OSL Group secured $300 million in equity funding in late July, joined by players like Dmall Inc. and AI powerhouse SenseTime Group.
Trump’s Crypto Push Fuels Asian Momentum
Meanwhile, Bloomberg reports that U.S. President Donald Trump’s pro-crypto stance is influencing regulatory and investment activity across Asian markets. His signing of the GENIUS Act on July 18 — the first major U.S. law for digital assets — is credited with reinforcing Asia’s momentum, particularly in the stablecoin space.
Beyond Hong Kong, Asian-linked stablecoins are gaining traction in South Korea, Malaysia, Thailand, and the Philippines, despite concerns over capital outflows. Still, the majority of the $256 billion global stablecoin market remains USD-pegged.
In South Korea alone, transactions using USDC, USDT, and USDS on local exchanges hit 57 trillion won ($41 billion) in Q1 2025. In response, the ruling Democratic Party is pushing the Digital Asset Basic Act to allow for won-backed stablecoin issuance, though the proposal remains politically divisive.