On Tuesday in Hong Kong, shares of crypto‑related firms jumped as investors bet on the city’s upcoming stablecoin licensing framework. Guotai Junan International saw its stock rise 16% by midday after winning approval to offer crypto trading services.
Licensed exchange OSL climbed 12.2%, while Dmall Inc. and Victory Securities gained 8.9% and 9.2% respectively. Market watchers linked the rally to optimism over the regulator’s plan to tighten rules on fiat‑pegged tokens.
Trading Gains
Guotai Junan International led the surge after the brokerage secured regulatory clearance to provide crypto trading last week. Investors cheered the move, pushing its shares higher than in recent sessions. OSL, which already holds a retail crypto licence, also drew attention.
The firm announced in June that it would acquire Banxa, a Canada‑based exchange, for C$85.2 million.
Dmall’s stock rose after the retail digitalisation group said it will seek a stablecoin licence and has begun buying bitcoin on HashKey’s platform. Victory Securities climbed after winning approval in April to offer crypto trading to clients.
Regulatory Catalyst
The jump comes as Hong Kong prepares to roll out its fiat‑stablecoin licence regime on August 1. Under the rules, issuers of tokens pegged to government currencies must secure a licence from the Hong Kong Monetary Authority.
Christopher Hui, the city’s Secretary for Financial Services and the Treasury, told Ming Pao that stablecoin licences may be granted this year but will likely remain in the single digits.
That scarcity has investors expecting a rush for approvals among token issuers and crypto service providers.
Also Read: Hong Kong to Start Issuing Stablecoin Licenses in Coming Months Amid Surge in Applications
Government Initiatives
Beyond stablecoins, the Hong Kong government has unveiled several steps to bolster its digital finance sector. It plans to issue tokenised green bonds twice, once this year and again in 2025, to raise funds for environmental projects.
The Financial Services and the Treasury Bureau also released Policy Statement 2.0 on the Development of Digital Assets.
The statement lays out a roadmap to build a trusted and innovative ecosystem by year‑end, underscoring Hong Kong’s aim to rival other global hubs in digital asset services.
Industry Outlook
People are thinking that the new license thing will have more traditional finance players in the crypto space. By putting stablecoins under strict regulations, they aim to boost people’s confidence so that they can invest.
Firms like Guotai Junan and Victory Securities are seen as frontrunners to expand crypto‑related offerings.
Broader Impact
With the stablecoin regime set to kick in on August 1, the next few weeks will test whether investor optimism can hold. Stocks of brokerages and exchanges that secure licences stand to gain as they tap new revenue streams.
Meanwhile, wider government plans on tokenised green bonds and digital asset policy signal Hong Kong’s ambition to become a leading hub for regulated crypto finance. As approval numbers stay low, firms that move fastest may reap the biggest rewards.