The Four-Way Race for Hong Kong’s Stablecoin Future

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The era of stablecoins is drawing closer—and Hong Kong is emerging as one of the most pivotal battlegrounds in Asia’s digital finance evolution. With recent regulatory clarity and growing institutional interest, the race to issue Hong Kong’s first regulated stablecoins has intensified into a high-stakes contest among four major player groups: tech giants from mainland China, Web3-native innovators, financial incumbents, and strategic alliances of legacy capital.

Backed by strong ecosystems, global ambitions, and deep pockets, these forces are positioning themselves not just for market share—but to shape the future of cross-border payments, tokenized assets, and blockchain-based finance in the region.

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The Regulatory Spark: Hong Kong’s Stablecoin Sandbox

In July 2024, Hong Kong’s Monetary Authority (HKMA) approved three groups for its first stablecoin issuer sandbox program—marking a critical milestone in the city's ambition to become a Web3 and fintech leader.

The sandbox isn’t a guarantee of licensing, but it allows selected firms to test their issuance models, redemption mechanisms, custody frameworks, and compliance systems under regulatory supervision. This trial phase is essential for aligning innovation with financial stability.

Among those admitted:

Meanwhile, Ant Group—though not part of the initial cohort—has publicly announced plans to apply for a license through its two newly independent subsidiaries: Ant International and AntChain (Ant Digital Tech).

Despite different timelines and strategies, all players now face the same starting line: proving they can deliver secure, scalable, and compliant stablecoin solutions.

JD.com: Building a Global Trade Backbone

JD Chain stands out as one of the most operationally advanced contenders. As a wholly owned subsidiary of JD.com, it leverages one of China’s largest e-commerce and logistics networks—an advantage few competitors can match.

Launched in March 2024 and headquartered in Hong Kong, JD Chain was quickly selected for the HKMA sandbox due to its comprehensive roadmap for stablecoin deployment focused on cross-border trade efficiency.

According to Liu Peng, CEO of JD Chain Technology, the project originated from JD’s international expansion needs. With over 100 overseas warehouses across 19 countries by the end of 2024, JD processes massive volumes of cross-border transactions where traditional banking rails create delays and high costs.

“Our goal isn’t to compete in crypto-native trading,” said Liu. “We’re building infrastructure for real-world commerce.”

JD Chain aims to reduce cross-border payment costs by up to 90%, with settlement times under 10 seconds. To achieve this, they’ve already begun testing:

For reserve management, JD Chain is collaborating with Airstar Bank, a virtual bank co-owned by Xiaomi (50.3%) and Futu Holdings (linked to Tencent). This partnership ensures transparent asset custody—a key requirement under Hong Kong’s Stablecoin Bill.

With刘强东 (Richard Liu) announcing plans to pursue stablecoin licenses in major currency jurisdictions globally, JD’s ambitions extend far beyond Hong Kong.

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Ant Group: Dual-Pronged Strategy with Global Reach

While Ant Group entered the race later than JD, its approach is more diversified. Two separate entities—Ant International and AntChain (Ant Digital Tech)—are independently pursuing stablecoin licenses in Hong Kong.

Ant International: Cross-Border Payments Reinvented

Focused on lowering friction in global remittances and B2B settlements, Ant International sees stablecoins as foundational infrastructure. Its existing services—including Alipay+, WorldFirst, and Bettr—already serve millions of merchants worldwide.

To support its stablecoin operations, Ant International has entered a strategic collaboration with Deutsche Bank, exploring:

This suggests Deutsche Bank may act as the custodian for 1:1 fiat-backed reserves—a crucial element for regulatory approval.

AntChain: Powering Real-World Asset Tokenization

AntChain takes a different path—leveraging stablecoins as settlement layers for RWA (Real World Asset) tokenization.

In August 2024, AntChain partnered with Longi Group to complete China’s first RWA financing using新能源 assets (EV chargers and energy storage units), raising ~CNY 100 million. The deal was included in HKMA’s Project Ensemble sandbox as a pioneering case.

Subsequent collaborations with GCL-Poly and Xunying Group further cemented its role in green energy tokenization.

As Bian Zhuoqun, President of AntChain’s blockchain division, stated:

“Stablecoins bridge traditional finance and tokenized assets. Their value lies in expanding use cases while maintaining compliance.”

With its own virtual bank in Hong Kong and vast merchant network, Ant Group is uniquely positioned to integrate stablecoins across both payment and capital markets.

Circle Innovation: The Web3 Powerhouse

Backed by former HKMA chief Norman Chan, Circle Innovation (Yuanbi Tech) represents the purest “crypto-native” force in the race.

Founded in 2020, its shareholder roster reads like a who’s who of Web3:

Unlike JD or Ant, which anchor their strategies in existing business lines, Circle Innovation is built from the ground up for the digital asset economy.

Its planned HKD-pegged stablecoin (HKDR) targets three core use cases:

  1. On-exchange trading – seamless pairing on regulated platforms
  2. Cross-border payments & trade finance
  3. Tokenized asset intermediation

Crucially, Circle Innovation has deep ties to HashKey Exchange, giving it an immediate distribution channel once regulatory clearance is granted. This mirrors how Coinbase boosted USDC adoption by offering fee discounts—a playbook well understood in crypto circles.

For custody, ZhongAn Bank will manage reserve assets—a move that strengthens trust through alignment with a regulated financial institution.

Rita Liu, CEO of Circle Innovation, believes the global stablecoin market could reach $3 trillion within five years, driven by institutional adoption and asset tokenization.

The Traditional Titans: SCB, Animoca & HKT Alliance

The third sandbox participant isn’t a single company—it’s a coalition of powerhouses:

This alliance blends credibility, technological vision, and infrastructure:

While details about their joint venture remain scarce—including equity structure and launch timeline—their collective strengths suggest a long-term play rather than a quick win.

However, challenges remain. Traditional financial institutions often move slowly compared to agile tech firms. Bridging cultural and operational gaps between legacy banking and decentralized tech will be critical.

Core Keywords Driving the Stablecoin Revolution

This evolving landscape revolves around several key themes:

These keywords reflect both user search intent and the strategic priorities shaping industry development.

FAQ: Understanding Hong Kong’s Stablecoin Landscape

Q: What is the purpose of Hong Kong’s stablecoin sandbox?
A: The HKMA sandbox allows pre-approved firms to test their stablecoin issuance models under supervision. It helps refine technical infrastructure, compliance protocols, and risk controls before full licensing decisions are made.

Q: Are stablecoins legal tender in Hong Kong?
A: No. Stablecoins are not legal tender but may be issued as private digital tokens if they meet strict regulatory requirements around reserves, audits, and consumer protection.

Q: How do reserve assets work for regulated stablecoins?
A: Issuers must hold 1:1 fiat reserves (e.g., HKD or USD) in segregated accounts managed by licensed custodians. These reserves must be regularly audited and disclosed to ensure full backing.

Q: Which companies are most likely to get licensed first?
A: While no official timeline exists, JD Chain and Ant Group appear operationally ready. Circle Innovation benefits from strong crypto-native partnerships. The SCB-Animoca-HKT consortium may take longer due to structural complexity.

Q: Can individuals use these stablecoins?
A: Initially targeted at institutional use—especially cross-border trade—retail adoption may follow once safety and usability are proven. Ant Group has hinted at future C2C applications.

Q: Will Hong Kong issue its own central bank digital currency (CBDC)?
A: Yes—the HKMA has been testing the e-HKD since 2021. However, it operates separately from private-sector stablecoins and is not expected to replace them.

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Final Outlook: A Market Poised for Transformation

As of late 2025, Hong Kong is on the verge of launching its first regulated stablecoins—with potentially around 10 issuers eventually approved. The current four-player dynamic is just the beginning.

Beyond immediate competition lies a broader transformation: integrating blockchain into mainstream finance through secure digital currencies that serve real economic functions—from global trade to green financing.

For investors, developers, and enterprises alike, the message is clear: Hong Kong is no longer just watching the Web3 revolution—it’s actively building it.