Crypto stocks soar in Hong Kong as stablecoin momentum builds
Quick Take Crypto stocks in Hong Kong rose on Tuesday amid growing optimism about the city’s incoming stablecoin licensing framework. Shares of Guotai Junan jumped 16%, while OSL’s stock surged 12% as of Tuesday noon in Hong Kong. Hong Kong’s stablecoin licensing regime is set to take effect on Aug. 1, with several traditional finance players expressing interest in applying.
Crypto-related stocks in Hong Kong jumped on Tuesday, driven by investor optimism over the region’s forthcoming stablecoin licensing framework.
Guotai Junan International, a Hong Kong-listed Chinese brokerage firm, saw its shares jump 16% as of noon, with the market still open, according to Yahoo Finance data . The securities firm obtained the regulatory approval to offer crypto trading services in Hong Kong last week.
Shares of OSL, a licensed crypto exchange in the city, climbed 12.2% as of Tuesday noon, while shares of Dmall Inc. rose 8.9%. Victory Securities' stock also leaped 9.2%.
OSL is one of the crypto trading platforms that have received licenses from the local regulator to offer retail services. It announced a C$85.2 million ($62.4 million) planned acquisition of the Canada-based Banxa exchange last month.
Dmall, a Chinese retail digitalization firm, said last week that it is preparing to apply for a stablecoin license in Hong Kong and has started to purchase bitcoin via HashKey exchange. Meanwhile, Victory Securities, a Chinese brokerage firm, gained regulatory approval to offer crypto trading services in April.
Investor enthusiasm comes as Hong Kong prepares to implement its stablecoin licensing regime on August 1. The upcoming framework mandates licensing from the Hong Kong Monetary Authority for issuers of fiat-referenced stablecoins.
In an interview with local newspaper Ming Pao published Monday, Christopher Hui, Secretary for Financial Services and the Treasury, said that Hong Kong may issue stablecoin licenses this year, but the number is likely to remain "in the single digits."
The excitement surrounding stablecoins also builds on remarks from Chinese central bank chief Pan Gongsheng in June. The People's Bank of China governor acknowledged that stablecoins and central bank digital currencies are reshaping the global payment infrastructure.
While Hong Kong's upcoming licensing regime and earlier sandbox programs were initially designed for Hong Kong dollar-pegged stablecoins, the prospect of offshore yuan-pegged stablecoins has become a hot topic locally. Chinese tech giants JD.com and Ant Group are lobbying China's central bank to approve offshore yuan-based stablecoins as the global stablecoin race intensifies, according to Reuters.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
A decade-long tug-of-war ends: "Crypto Market Structure Bill" sprints to the Senate
At the Blockchain Association Policy Summit, U.S. Senators Gillibrand and Lummis stated that the "Crypto Market Structure Bill" is expected to have its draft released by the end of this week, with revisions and hearings scheduled for next week. The bill aims to establish clear boundaries for digital assets by adopting a classification-based regulatory framework, clearly distinguishing between digital commodities and digital securities, and providing a pathway for exemptions for mature blockchains to ensure that regulation does not stifle technological progress. The bill also requires digital commodity trading platforms to register with the CFTC and establishes a joint advisory committee to prevent regulatory gaps or overlapping oversight. Summary generated by Mars AI. The accuracy and completeness of this summary, generated by the Mars AI model, is still being iteratively updated.
Gold surpasses the $4,310 mark—Is the "bull frenzy" returning?
Boosted by expectations of further easing from the Federal Reserve, gold has risen for four consecutive days. Technical indicators show strong bullish signals, but there remains one more hurdle before reaching a new all-time high.
Trend Research: Why Are We Still Bullish on ETH?
Against the backdrop of relatively accommodative expectations in both China and the US, which suppress asset downside volatility, and with extreme fear and capital sentiment not yet fully recovered, ETH remains in a favorable "buy zone."
Trending news
MoreCrypto prices
More
