Hong Kong stablecoin license enters the final countdown at the "border gate"! JD.com and Ant Group competition reaches its conclusion.

The Hong Kong Monetary Authority (HKMA) will officially close the application for the stablecoin issuer license at 24:00 on September 30, with 77 applications entering the final "countdown" stage. According to several individuals close to the approval team, the first round of licenses will "most likely" issue only 3 licenses, and the "material supplementation window has been closed all at once, and no further updates will be accepted." This 13-month-long legislative range-bound, 7-month sandbox sprint, and 4 rounds of regulatory inquiries "compliance marathon" is about to reach its conclusion.

The "Underflow" Behind Regulatory Barriers

The application deadline does not mean that the license will be issued immediately. The internal timetable of the Monetary Authority indicates that from October 1, a "silent review period" will commence, with the earliest approval by the Executive Council on November 15, and it will officially take effect with the gazetting on January 2, 2026.

"This is not only a technical competition, but also a balance of compliance and innovation," said an executive from a fintech company involved in the application. "The standards set by the monetary authority far exceed market expectations, especially in terms of reserve transparency and technical security."

· The "3+2" backup mechanism ensures market stability

According to informed sources, in addition to the first batch of 3 official licenses, the Monetary Authority will simultaneously lock in 2 candidate institutions. Once the officially licensed entity triggers a capital deficiency of HKD 25 million or a reserve gap reaches or exceeds 2%, the candidate institutions can step in within 30 days to ensure the stable operation of the market.

"This type of reserve mechanism is a world first in the regulation of stablecoins," explained a regulatory expert. "It ensures market stability while providing regulators with the flexibility to respond."

· The surprise inspection has quietly begun

Starting this week, the Monetary Authority, the Securities and Futures Commission, and the Commercial Crime Bureau of the Police Force have formed a joint task force to conduct "No-Knock" on-site inspections of 10 "first-tier" institutions. The focus of the inspections includes:

· Cold Wallet Private Key Custody Mechanism

· HSM (Hardware Security Module) physical isolation measures

· The matching degree between off-chain fiat accounts and on-chain tokens

"These surprise inspections are the final screening hurdle," said a person close to the regulatory agency. "Any loopholes at the operational level could lead to the rejection of the application, no matter how well the preliminary preparations were made."

The Upgrade of "Involution" Among Issuing Banks

The three major note issuing banks in Hong Kong are engaged in fierce competition for stablecoin licenses, each adopting different strategies to win regulatory favor.

1. Bank of China Hong Kong: Betting on Cross-Border Settlement in the Greater Bay Area

On September 27, Bank of China Hong Kong last minute supplemented the "Guangdong-Hong Kong-Macao Greater Bay Area Cross-Border Settlement" technical white paper, proposing to directly connect the Hong Kong dollar stablecoin HKDCNH to the digital yuan (e-CNY) sub-wallet, achieving second-level conversion between "offshore Hong Kong dollars and onshore RMB."

"This plan is viewed by regulators as a 'pressure test for the internationalization of the Renminbi' and has received positive feedback," said a fintech expert familiar with the situation. "It not only addresses technical issues but also aligns with Hong Kong's strategic positioning as an offshore Renminbi center."

2. Standard Chartered Consortium: Technology and User Dual Leadership

The "Anchorpoint" consortium formed by Standard Chartered Bank, Hong Kong Telecommunications, and Animoca has completed the pre-registration of 2 million wallet users for KYC, with reserves held in Standard Chartered Hong Kong's QDAP trust account. The consortium commits to daily syncing the on-chain PoR (Proof of Reserves) hash value to the Monetary Authority's API interface, leading competitors in technical implementation.

"The advantage of the Standard Chartered consortium lies in the integration of banking, telecommunications, and Web3 resources," noted a blockchain analyst. "This cross-industry collaboration model provides more comprehensive infrastructure support for the large-scale application of stablecoins."

3. HSBC: Unexpectedly "Falling Behind"

As one of the three major currency issuance institutions, HSBC has rarely "fallen behind" in this competition. It is reported that its redemption smart contract submitted in August was found to have a "reentry attack" vulnerability by the auditing agency, requiring redeployment, and has missed the first round window.

"This technical flaw dealt a fatal blow to HSBC's application," explained a blockchain security expert. "In the stablecoin sector, security is the absolute bottom line; any vulnerability could lead to massive financial losses."

The "Scene Breakthrough" Strategy of Tech Giants

In the face of strong competition from traditional financial institutions, technology giants are adopting a "scenario breakthrough" strategy, leveraging their ecological advantages to create differentiated competitiveness.

1. JD Coin Chain Technology: E-commerce Scenarios First

JD Coin Chain Technology has upgraded the Hong Kong and Macau version of "JD Global Sale" to a "stablecoin settlement zone," allowing users to purchase 3C products using JD-HKD, and the platform also offers a 1% exchange rate discount subsidy. At the same time, the company has completed a daily automatic reconciliation system for reserve funds with Tiansheng Bank, compressing the on-chain PoR verification time to 8 seconds.

"E-commerce scenarios are one of the most direct application areas for stablecoins," said an e-commerce expert. "JD's strategy is to prove the value of stablecoins through real-world scenarios, which is more convincing than pure technological competition."

2. Ant Group: Curve Enters the Southeast Asia Market

Although Ant International has not directly submitted an application, it has entered the market through a strategic investment in the licensed trust institution "ZhongAn Bank". The company plans to launch a "daily settlement wage stablecoin" aimed at delivery riders in Southeast Asia, with an initial pilot for 100,000 users in the Philippines.

"The strategy of Ant is more globally oriented," analyzed a payment system expert. "They are not only focused on the local market in Hong Kong, but are using Hong Kong as a springboard to create a cross-border payment network that covers Southeast Asia."

The 'Tech Gamble' of Web3 Native Enterprises

Compared to traditional financial institutions and tech giants, Web3 native enterprises have shown bolder attempts in technological innovation.

1. Coin Innovation Technology: Zero-Knowledge Proofs Leading the Way

Round Coin Innovative Technology (HKDR) has received regulatory technical points through its zero-knowledge proof (ZKP) reserve proof system. Its "dynamic reserve pool" can real-time unbox 110% over-collateralized Hong Kong dollar government bond ETFs into 1:1 stablecoins, which has been pre-purchased by Middle Eastern payment giant Lulu Exchange for a quota of 500 million Hong Kong dollars.

"Zero-knowledge proof technology provides mathematical guarantees for reserve transparency," explained a cryptocurrency economist. "This technological innovation not only meets regulatory requirements but also brings a qualitative leap to the trust mechanism of stablecoins."

Global Ripples: Hong Kong Standard Output to the World

The impact of the Hong Kong stablecoin regulatory framework has far exceeded the local market and is reshaping the global digital currency landscape.

· US dollar stablecoins face "Hong Kong Compliance Tax"

If USDT/USDC and other dollar stablecoins want to operate legally in Hong Kong, they must transfer 100% of their reserves to a locally licensed bank and undergo monthly audits. Tether CEO Paolo Ardoino stated at TOKEN2049 that they are "evaluating the spin-off of a compliance subsidiary in Hong Kong," hinting at the possible emergence of a "HK-Tether" dual-track structure.

"This is a redefinition of the global stablecoin standard," noted a digital asset regulatory expert. "Hong Kong is demonstrating through practical actions that stablecoins can be both innovative and Compliance, maintaining flexibility while ensuring security."

· The EU MiCA Act draws on Hong Kong's experience

The latest amendment from the EU MiCA drafting group on September 26 directly references Hong Kong's "independent custody of reserve assets + daily on-chain disclosure" provisions. Market commentators say that the "Hong Kong dollar standard" is being exported globally.

· Research on the Interoperability of Digital Renminbi and Hong Kong Dollar Stablecoins

Di Gang, the deputy director of the Digital Currency Research Institute of the People's Bank of China, revealed this week in Hong Kong that they are researching a cross-chain interoperability protocol for "digital renminbi and compliant Hong Kong dollar stablecoins," which the market interprets as a prelude to the "green light" for offshore renminbi stablecoins.

"This research direction has significant strategic significance," said a central bank digital currency expert. "It not only involves technological interoperability but also concerns the digital path of the internationalization of the renminbi."

Investor Tips and Digital Port Development

The Monetary Authority reiterated that any "unlicensed" institution promoting stablecoins in Hong Kong after September 30 will be committing a crime, with individuals facing a maximum fine of HKD 500,000 and imprisonment for 2 years; companies may face a maximum fine of HKD 5,000,000.

At the same time, Zhu Meien, Chief Corporate Development Officer of Cyberport Hong Kong, revealed that over 30% of the projects in Cyberport Hong Kong are from the mainland. Currently, strategic cooperation agreements have been signed with areas such as Zhongguancun in Beijing, Lin-gang in Shanghai, and Qianhai in Shenzhen, aiming to bring high-quality projects in high-tech fields such as AI, big data, and blockchain to Hong Kong.

In addition, the Assistant Chief Executive (External) of the Hong Kong Monetary Authority, Xu Huai-Zhi, disclosed that the Hong Kong Special Administrative Region government has issued a total of approximately HKD 386 billion in RMB, HKD, EUR, and USD bonds through the "Government Green Bond Programme" and the "Infrastructure Bond Programme" since 2019. In February 2023 and February 2024, two batches of tokenized green bonds were successfully issued, with scales of USD 100 million and USD 750 million respectively. The third batch of tokenized bonds will not only be asset-side tokenized but will also consider implementing fund-side tokenization, with the possibility of integrating CBDC subscription.

Conclusion: A New Chapter in Digital Finance in Hong Kong

As the countdown enters the final 48 hours, Hong Kong is not only choosing the owners of 3 licenses but also defining the competitive rules for the next generation of digital currency—will it continue to tolerate offshore anonymity, or embrace the new paradigm of "100% reserve + on-chain transparency"? Hong Kong's choice will influence the development direction of global digital finance, and the answer will soon be revealed.