The financial world witnessed a landmark moment on June 24, 2025 — a quiet but transformative shift that could redefine the future of digital finance. In the heart of Hong Kong’s Central District, amid its towering skyscrapers, Guotai Junan International officially received an upgraded license from the Hong Kong Securities and Futures Commission (SFC). This pivotal decision allows clients to trade cryptocurrencies and stablecoins directly on its regulated platform.
This milestone marks more than just a regulatory update; it represents a strategic leap forward in the global race for digital financial sovereignty. As one of the first jurisdictions to formally regulate stablecoin issuers under a legal framework, Hong Kong has sent a powerful signal: the era of digital asset integration into mainstream finance is no longer speculative — it's here.
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The Rise of Stablecoins: From Niche Innovation to Financial Backbone
Stablecoins — digital assets pegged to fiat currencies or other reserves — have evolved from experimental tokens into core infrastructure for modern financial systems. Their primary value lies in stability and speed, enabling near-instant cross-border payments at a fraction of traditional costs. Use cases span from crypto trading settlements to real-world asset (RWA) tokenization and decentralized finance (DeFi) protocols.
According to DefiLlama, as of July 1, 2025, the global stablecoin market encompasses over 267 distinct tokens, with a combined market capitalization exceeding $253.8 billion**. Dominated by **USDT ($158.7B) and USDC ($61.2B), dollar-backed stablecoins control roughly 86% of the market — underscoring the enduring influence of the U.S. dollar in digital form.
Yet, change is brewing.
Hong Kong’s new regulatory framework opens the door for offshore Renminbi (RMB)-backed stablecoins, potentially creating a blockchain-based channel for RMB internationalization. Analysts at Guangda Securities suggest this could serve as a "strategic pivot" — allowing China to bypass traditional banking channels and compete in the digital currency arena through innovation rather than dominance.
As noted by financial scholars, “This may be the most significant transformation of the global monetary system since the collapse of the Bretton Woods agreement.”
Tech Giants Join the Stablecoin Race
The momentum isn’t limited to regulators. Major technology firms are positioning themselves at the forefront of this movement:
- JD.com founder Liu Qiangdong recently announced plans to apply for stablecoin licenses in key currency regions globally.
- Ant International confirmed it will pursue licensing as soon as regulatory pathways open.
These moves reflect a broader trend: technology and finance convergence, where payment ecosystems evolve into full-stack financial platforms powered by blockchain.
In mainland China, A-share markets have already responded. Firms linked to stablecoin infrastructure — including Smartra (up 210% YTD), Hengbao, Cuiwei, and Jingbei North — saw share prices double or more in the first half of 2025. This surge was fueled not only by sentiment but by tangible progress in policy and adoption.
Fintech ETF (159851) Soars 116.17%: A New Market Leader Emerges
At the center of this transformation stands the Fintech ETF (159851) — a fund whose performance has captured investor attention worldwide. Over the past year, it surged 116.17%, claiming the top spot among all ETFs in China by return.
Even more striking is its short-term momentum:
- From June 23 to June 25 alone, the ETF gained 15.46%.
- In June 2025, it climbed 18.64%, outperforming nearly every asset class.
- Its underlying index delivered a staggering 123% gain during the “9·24 rebound” across just 32 trading days.
What drives such explosive growth?
Why Fintech ETF (159851) Outperforms
The answer lies in its composition. The ETF tracks the CSI Fintech Theme Index, which includes leading players across:
- AI-powered financial services
- Internet brokerage platforms
- Financial IT systems
- Huawei HarmonyOS integration
- Digital currency infrastructure
With 23% exposure to stablecoin-related equities — the highest among all ETFs — its performance is tightly coupled with the digital asset revolution.
Key holdings include:
- East Money (300059)
- Tonghuashun (300033)
- Hundsun Technologies (002474)
- Runhe Software (300473)
- Sinolink Wealth Management (002797)
These companies benefit from multiple tailwinds:
- Rising demand for digital trading platforms
- Increased IT spending by financial institutions during bull markets
- Expansion into blockchain-based financial products
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Market Transformation: The Great "Deposit Migration" Begins
Beyond individual stocks and funds, a deeper structural shift is underway.
In May 2025, China’s one-year deposit rate fell below 1%, marking a turning point in household finance. As highlighted by CITIC Securities in their report “Witnessing History,” this signals the beginning of the end for interest-dependent wealth growth.
Consumers are now forced to reconsider their strategies:
- Embrace risk for higher returns
- Diversify into equities, funds, and alternative assets
Currently, Chinese households hold around ¥160 trillion in deposits — over 80% of property income comes from interest, compared to just 10% from dividends. In contrast, among 38 developed economies, average dividend income accounts for 55% of property earnings.
As savers seek better yields, capital is flowing into capital markets en masse.
According to Dongwu Securities’ Chief Economist Lu Zhe, this shift represents a “historical reallocation” — one amplified by favorable macro conditions:
- Economic recovery momentum
- Falling interest rates
- Regulatory support for digital finance
The results are visible:
- A-share trading volume has exceeded ¥1 trillion daily for 23 consecutive sessions.
- Total market capitalization reached ¥100.02 trillion by June 30, up 6.5% from year-end 2024.
- Fintech ETF (159851) attracted ¥7.14 billion in net inflows over the past 10 days.
- Average daily turnover hit ¥751 million in June.
- Fund规模 (AUM) rose to ¥5.73 billion, setting new records.
FAQ: Your Questions About Fintech & Stablecoins Answered
What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar, euro, or gold. It combines blockchain efficiency with price predictability.
Why are stablecoins important for finance?
They enable fast, low-cost cross-border transactions, reduce settlement risk, and serve as on-ramps to digital asset ecosystems — making them essential infrastructure for Web3 and DeFi.
How does Fintech ETF (159851) generate high returns?
By tracking top fintech innovators benefiting from rising trading volumes, digital banking adoption, AI integration, and blockchain expansion — especially those involved in stablecoin ecosystems.
Is Hong Kong’s stablecoin regulation a game-changer?
Yes. By providing clear licensing rules, Hong Kong positions itself as a global hub for compliant digital asset innovation — potentially accelerating RMB digitization and challenging dollar dominance.
Can individuals invest in stablecoins directly?
Yes, through regulated exchanges and platforms offering custody and trading services. However, investors should assess risks related to issuer credibility, regulatory changes, and technological vulnerabilities.
What role do tech giants play in stablecoin development?
Companies like JD.com and Ant Group bring scale, user bases, and payment infrastructure — accelerating mainstream adoption when combined with compliant blockchain solutions.
Looking Ahead: A New Chapter in Financial Evolution
The meteoric rise of the Fintech ETF isn’t merely about numbers — it reflects a fundamental reordering of financial power. Just as Rockefeller capitalized on energy transitions and Bezos harnessed the internet wave, today’s winners are those aligning with the convergence of finance, technology, and decentralization.
With Hong Kong leading regulatory innovation and capital shifting toward digital-first assets, 2025 may well be remembered as the year when traditional finance finally embraced the blockchain era.
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Note: All data presented reflects market conditions as of mid-2025. Past performance does not guarantee future results. Investing involves risk, including possible loss of principal. This article contains no investment advice — please consult financial professionals before making decisions.