Hong Kong: Stablecoins are expected to bring transformation to the Capital Market and will encourage issuers to promote the application of stablecoins in various scenarios.

[Hong Kong: Stablecoins are expected to bring about transformation in the Capital Market and will promote issuers to apply stablecoins to different scenarios] On June 29, news emerged that Paul Chan, the Financial Secretary of Hong Kong, stated that the potential of fintech in cross-border trade applications is enormous, aiming to address long-standing pain points such as slow cross-border payment speeds and high costs, and to better serve the real economy in the payment sector. One of the four pillars mentioned in the "Digital Asset Development Policy Declaration 2.0" released last week is "promoting application scenarios and cross-sector collaboration," which highlights that stablecoins provide a cost-effective alternative outside the traditional financial system and have the potential to transform payment and Capital Market activities, including cross-border payments. The regulations for stablecoins will take effect on August 1 this year, and the SAR government and financial regulatory agencies will strive to create a favorable market environment, coupled with necessary regulatory measures, to promote issuers to apply stablecoins to different scenarios, helping to address the substantial pain points in business operations and citizens' lives.