Global stablecoin infrastructure is undergoing a major change: Hong Kong's new regulations take effect on August 1 & the signing of the US GENIUS Act, institutional competition ignites market expectations.

The global stablecoin landscape is undergoing an unprecedented structural transformation. The Hong Kong "Stablecoin Issuer Ordinance" will officially take effect on August 1, and coupled with U.S. President Trump signing the "Global Stablecoin Innovation Act" (GENIUS Act) on July 18, the simultaneous implementation of regulatory frameworks in the East and West has triggered a strong market reaction. TradFi institutions are accelerating their efforts to seize entry points into digital asset infrastructure, the competition for offshore RMB stablecoins is quietly heating up, and the compliant stablecoin sector is entering a phase of explosive growth. This article will analyze market dynamics, institutional strategic layouts, and future directions of the compliant stablecoin ecosystem under the dual regulatory wave.

Market Frenzy Meets Regulatory Cooling: The Battle for Licenses in Hong Kong Intensifies As the new regulations for stablecoins in Hong Kong are about to take effect, traditional financial institutions are actively positioning themselves in the emerging digital asset infrastructure. Market speculation is high, with over 50 institutions expressing their intention to apply for stablecoin issuer licenses, including domestic state-owned enterprises, tech giants, and crypto-native platforms. However, the head of the Hong Kong Monetary Authority, Eddie Yue, warns the market against being overly optimistic, emphasizing that initial license approvals will be extremely strict, and the first batch of licensed institutions may only be in single digits. Anti-money laundering compliance capabilities and on-chain technology implementation plans will become core review criteria, as most applicants lack substantial application scenarios or technological reserves.

Strategic Layout Beyond Short-term Arbitrage: Offshore Renminbi Stablecoin Becomes the Focus Despite regulatory hurdles, the stock market performance confirms the power of the stablecoin narrative. The stock prices of related companies such as OSL Group, OKX Chain, and Victory Enterprises Holdings, which announced preparations for license applications, have all surged significantly. Institutional strategic layouts far exceed the short-term Hong Kong dollar stablecoin business, and offshore RMB stablecoin infrastructure has become a battleground. Chinese tech giants like JD.com and Ant Group are actively lobbying Beijing for authorization to issue offshore RMB stablecoins, viewing the dominance of the US dollar in the market as a strategic threat. This move reflects the urgency of accelerating the process of RMB internationalization against the backdrop of USDT being widely adopted by Chinese exporters. It is worth noting that the Hong Kong licensing framework requires a paid-up capital of 25 million HKD and ongoing high compliance costs. Market observers expect that the speculative trading of related stocks may continue before the first batch of licenses is issued.

The US GENIUS Act Ignites Institutional Entry: A Global Compliance Wave Takes Shape In the United States, the signing of the "Global Stablecoin Innovation Act" has injected a boost into the market. This act establishes a dual-track licensing pathway for federal and state levels and mandates monthly reserve proof audits. The clear regulations led to a surge of $4 billion in the total market value of stablecoins within a week, demonstrating institutions' confidence in compliant fiat deposit and withdrawal channels. The new bill allows banks to issue stablecoins under license, with Circle, Paxos, and JPMorgan's Kinexys being the main beneficiaries. The cross-chain liquidity of public chains like Base and Solana has significantly improved, reflecting the enhancement of compliance infrastructure. Currently, the annual settlement volume of stablecoins has surpassed that of Visa and Mastercard combined, and traditional financial institutions are accelerating the integration of on-chain tokenized cash solutions. The bill requires the U.S. Treasury to publish a technical reserve report regulation within 180 days, while the CFTC will oversee the automated compliance execution mechanism.

Conclusion: The stablecoin regulatory framework launched concurrently in Hong Kong and the United States marks a critical stage in the global compliance process for digital assets. Although the regulatory competition between the East and West follows different paths, the strategic goals of promoting fiat currency on-chain and building a reliable on-chain settlement network are converging. Short-term market speculation and the scarcity of licenses will drive the volatility of related assets, while the long-term winners will belong to institutions with strong capital strength, strict compliance risk control, and real application scenarios. Whether offshore RMB stablecoins can break the deadlock and how bank-backed stablecoins can reshape the payment ecosystem will become core observation dimensions in the next stage. Investors should closely monitor the timing of the first batch of Hong Kong license issuances and the progress of institutional adoption of compliant stablecoins in the United States.