Hong Kong Mulls Offshore RMB-Backed Stablecoin Amid Fintech Push
Quick Breakdown
- Hong Kong Legislative Council’s latest report highlights growing support for RMB-backed stablecoins.
- The Stablecoin Ordinance, effective August 1, draws interest from major Chinese state-owned firms.
- Authorities warn against unlicensed stablecoin projects as licensing framework remains pending.
Hong Kong legislature signals interest in RMB-backed stablecoin
The Hong Kong Legislative Council has released a special bulletin detailing new policy directions in the region’s digital finance landscape, spotlighting the growing role of stablecoins including those backed by China’s renminbi (RMB).
Published on October 13, the “ Special Report ” offers insights into government priorities across fintech, digital assets , and cross-border finance. The report underscores Hong Kong’s ambition to remain an international financial hub by integrating blockchain and stablecoin innovations into its broader economic framework.
Push for RMB-backed stablecoin development
For the first time since August, the bulletin explicitly references the government’s intention to seek central support for developing offshore RMB-pegged stablecoins. Such an initiative could bolster cross-border settlements and improve payment efficiency, positioning Hong Kong as a global leader in Web3 and digital asset innovation.
The city has already taken legislative steps with the Stablecoin Ordinance, which came into effect on August 1. Lawmakers are now considering amendments based on industry feedback, including expanding the pool of licensed stablecoin issuers to include those pegged to traditional fiat currencies.
China’s state firms show interest in licensing
Following the rollout of the new regulatory framework, the Hong Kong Monetary Authority (HKMA) has reportedly received strong interest from several state-backed Chinese corporations, including China National Petroleum Corporation and Bank of China.
PetroChina, in particular, is said to be exploring the use of stablecoins to facilitate cross-border energy trade settlements, signaling Beijing’s growing willingness to test stablecoin applications beyond domestic markets.
Regulatory warnings amid rising investor activity
Despite mounting enthusiasm, regulators remain cautious. The HKMA has warned the public against unlicensed entities claiming to hold stablecoin issuer permits, clarifying that the official licensing process has yet to begin.
Authorities are also monitoring a rise in unauthorized stablecoin projects, emphasizing the importance of investor vigilance as Hong Kong transitions into a more tightly regulated digital finance ecosystem. Beyond stablecoins, the government’s fintech strategy includes the tokenization of green bonds, with over $43 billion in sustainable bond issuances planned.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
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 victory for retail investors! Wall Street short sellers suffer their worst performance in five years and are forced to "surrender"
Retail investors banding together are overwhelming professional short-sellers, as once-dominant Wall Street bears are experiencing their most painful defeat in five years. Wall Street elites, out of solutions, have begun to blame retail investors for being "irrational"...
A16Z's core capability is shilling and pumping.
VC is media; influence is power.
Curve team starts a new venture: Will YieldBasis become the next phenomenal DeFi application?
YieldBasis represents one of the most innovative designs in liquidity provision since the original stable swap model by Curve.
A $20 million entry ticket: Ten key Q&As on Hyperliquid HIP-3
Want to launch your own Perp DEX? Want to gain an in-depth understanding of HIP-3? Start by understanding these 10 key questions.
