The future of finance is unfolding in real time, and stablecoins are at the heart of this transformation. On June 25, 2025, Guotai Junan International saw its Hong Kong-listed shares surge by nearly 200% in a single day — a historic spike triggered not by traditional earnings news, but by a landmark regulatory upgrade. The firm became the first Chinese-funded securities firm in Hong Kong to receive approval from the Securities and Futures Commission (SFC) to offer comprehensive virtual asset trading services, including cryptocurrency and stablecoin transactions.
This pivotal development marks more than just a corporate milestone — it reflects Hong Kong’s bold leap into becoming a global hub for digital assets, backed by clear regulatory frameworks and strategic government vision.
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Hong Kong’s Strategic Roadmap for Virtual Assets
To maintain leadership in an evolving financial landscape, the SFC has introduced its A-S-P-I-Re roadmap, built on five pillars:
- Access to markets
- Safeguards for investors
- Products innovation
- Infrastructure development
- Relationships with global regulators
This structured approach supports a secure, scalable ecosystem where traditional finance converges with blockchain efficiency. In 2024, Guotai Junan International launched spot crypto ETF-based structured products, followed by agent services for virtual asset trading platforms. By mid-2025, the firm gained SFC approval to distribute tokenized securities and initiated digital bond issuance — positioning itself at the forefront of asset digitization.
As of June 24, 2025, 11 virtual asset trading platforms operate under full SFC licensing. Meanwhile, 40 firms — primarily foreign and local brokers — have upgraded their Type 1 (trading) licenses to include crypto services. Another 40 hold Type 9 (asset management) licenses allowing portfolios with over 10% exposure to digital assets. Alongside Guotai Junan, companies like Futu Holdings, ZhongAn Online, and Interactive Brokers have also secured VASP (Virtual Asset Service Provider) licenses.
A Market on the Move: Broader Industry Impact
The ripple effects were immediate. On June 25, mainland brokerages such as Zhongzhou Securities, CITIC Construction Investment, and China Merchants Securities posted double-digit gains in Hong Kong. In mainland China, all 49 securities firms under the SWIND classification rose, with Dongfang Capital up 10.04%, and Guosheng JinKong hitting consecutive daily limits.
This market enthusiasm underscores growing investor confidence in regulated digital finance. With upgraded licensing, clients can now trade major cryptocurrencies like Bitcoin and Ethereum, along with stablecoins such as Tether (USDT), directly through Guotai Junan’s integrated platform.
Hong Kong’s Digital Asset Policy 2.0: A Bold Vision
On June 26, the Hong Kong Special Administrative Region government released the Hong Kong Digital Asset Development Policy Declaration 2.0, reaffirming its ambition to become a global innovation center in digital finance. The policy introduces the LEAP framework:
- Legal & Regulatory Streamlining: Establishing a unified regulatory regime covering digital asset exchanges, stablecoin issuers, custodians, and service providers.
- Expanding Tokenized Products: Institutionalizing tokenized government bonds and incentivizing real-world asset (RWA) tokenization — including clarifying stamp duty rules for tokenized ETFs.
- Advancing Use Cases & Collaboration: Launching the stablecoin licensing regime on August 1, accelerating practical adoption across sectors.
- People & Partnership Development: Fostering talent through academic-industry collaboration and positioning Hong Kong as a global knowledge hub for digital assets.
Financial Secretary Paul Chan emphasized: “Digital assets are a vital frontier in fintech — enabling faster, cheaper transactions and broader financial inclusion.” Financial Secretary Christopher Hui added that Hong Kong’s unique position bridges East and West, offering a clear path for enterprises navigating the digital transition.
Stablecoins: From Experimentation to Institutionalization
According to Dr. Xiao Feng, Chairman and CEO of HashKey Group, these developments signal not evolution — but institutional transformation. Three key shifts define this new era:
- Regulatory inclusion of stablecoins
- RWA tokenization as a core industry focus
- Tax exemptions for tokenized ETFs and digital asset funds
Dr. Xiao describes stablecoins as the next stage of monetary evolution — “tokenized money” — leveraging distributed ledger technology (DLT) for peer-to-peer value transfer without intermediaries. Their emergence enables the digital twin economy, where physical assets are represented and traded on-chain.
Stablecoins fulfill core monetary functions: payment, settlement, and cross-border liquidity. They could even address the “last mile” challenge in financial inclusion and revolutionize international remittances.
However, challenges remain. While dollar-backed stablecoins reinforce U.S. monetary dominance globally, China may respond by launching an offshore RMB stablecoin pilot via Hong Kong, potentially integrating it with its central bank digital currency (CBDC).
Global Perspectives: Regulation vs Innovation
IMF: Supporting Responsible Innovation
At the 2025 Summer Davos Forum, IMF Deputy Managing Director Li Bo highlighted the transformative potential of digital currencies across Asia, Africa, and Latin America. He noted that both public-sector initiatives (like CBDCs) and private-sector innovations (such as stablecoins) are reshaping finance.
The IMF is collaborating with bodies like the Financial Stability Board and Basel Committee to develop global standards, helping nations implement safe and inclusive frameworks. While change will be gradual, Li stressed that new technologies will ultimately make the international monetary system more efficient — provided regulation keeps pace.
BIS: Stablecoins Fail Key Monetary Tests
Despite their growth, stablecoins face skepticism from traditional institutions. A recent Bank for International Settlements (BIS) report found they fail three critical tests for serving as foundational currency:
- Singleness: Unlike central bank money, each stablecoin represents a claim on a specific issuer — creating fragmented “dollar variants” without final settlement.
- Elasticity: Issuers cannot expand supply flexibly; every new coin requires full pre-funding, limiting their ability to support large-scale payment systems.
- Integrity: Public blockchains enable anonymity, increasing risks of illicit use — already observed in terrorism financing and money laundering.
Yet the report acknowledges stablecoins’ impact: USDT and USDC dominate a market where over 99% are USD-denominated. Their investments in U.S. Treasuries now rival major money market funds. A $3.5 billion increase in stablecoin supply can reduce Treasury yields by 2.5–5 basis points — triple that during redemptions.
The UK’s Regulatory Push
In parallel, the UK is advancing its own framework. Financial Conduct Authority (FCA) CEO Nikhil Rathi emphasized the need for strong oversight during the 2025 Lujiazui Forum. Proposed rules require:
- 1:1 backing by low-risk, liquid reserves
- Third-party custody of reserves
- Transparent disclosure of reserve composition, audits, and risk management
These align closely with Hong Kong’s upcoming Stablecoin Ordinance, reinforcing a global trend toward accountability.
FAQ: Your Questions Answered
Q: What makes Guotai Junan International’s license different?
A: It’s the first Chinese-funded broker in Hong Kong approved for full-scale virtual asset trading — including crypto and stablecoins — under SFC oversight.
Q: Are stablecoins safe for everyday use?
A: Regulated stablecoins backed 1:1 by high-quality reserves are far safer than unbacked cryptos — but users must verify issuer transparency.
Q: How does RWA tokenization work?
A: Real-world assets like bonds or real estate are digitized on blockchain, enabling fractional ownership, faster settlement, and global liquidity.
Q: Will Hong Kong’s policies affect mainland China?
A: Yes — Hong Kong serves as a testing ground for offshore RMB digital innovation that could inform broader national strategies.
Q: Can stablecoins replace traditional currencies?
A: Not yet. While useful for payments and settlements, they lack central bank backing and systemic elasticity required for full monetary roles.
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Final Outlook: The Institutional Turn
The surge in Guotai Junan’s stock isn’t just about one company — it reflects institutional confidence in a regulated digital future. With Hong Kong’s Policy 2.0, global coordination via IMF/BIS, and growing RWA adoption, we’re witnessing the birth of a new financial architecture.
Core keywords: stablecoin, virtual asset, digital asset, tokenized securities, RWA, Hong Kong SFC, blockchain finance
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