Crypto stocks soar in Hong Kong as stablecoin momentum builds
Quick Take Crypto stocks in Hong Kong rose on Tuesday amid growing optimism about the city’s incoming stablecoin licensing framework. Shares of Guotai Junan jumped 16%, while OSL’s stock surged 12% as of Tuesday noon in Hong Kong. Hong Kong’s stablecoin licensing regime is set to take effect on Aug. 1, with several traditional finance players expressing interest in applying.
Crypto-related stocks in Hong Kong jumped on Tuesday, driven by investor optimism over the region’s forthcoming stablecoin licensing framework.
Guotai Junan International, a Hong Kong-listed Chinese brokerage firm, saw its shares jump 16% as of noon, with the market still open, according to Yahoo Finance data . The securities firm obtained the regulatory approval to offer crypto trading services in Hong Kong last week.
Shares of OSL, a licensed crypto exchange in the city, climbed 12.2% as of Tuesday noon, while shares of Dmall Inc. rose 8.9%. Victory Securities' stock also leaped 9.2%.
OSL is one of the crypto trading platforms that have received licenses from the local regulator to offer retail services. It announced a C$85.2 million ($62.4 million) planned acquisition of the Canada-based Banxa exchange last month.
Dmall, a Chinese retail digitalization firm, said last week that it is preparing to apply for a stablecoin license in Hong Kong and has started to purchase bitcoin via HashKey exchange. Meanwhile, Victory Securities, a Chinese brokerage firm, gained regulatory approval to offer crypto trading services in April.
Investor enthusiasm comes as Hong Kong prepares to implement its stablecoin licensing regime on August 1. The upcoming framework mandates licensing from the Hong Kong Monetary Authority for issuers of fiat-referenced stablecoins.
In an interview with local newspaper Ming Pao published Monday, Christopher Hui, Secretary for Financial Services and the Treasury, said that Hong Kong may issue stablecoin licenses this year, but the number is likely to remain "in the single digits."
The excitement surrounding stablecoins also builds on remarks from Chinese central bank chief Pan Gongsheng in June. The People's Bank of China governor acknowledged that stablecoins and central bank digital currencies are reshaping the global payment infrastructure.
While Hong Kong's upcoming licensing regime and earlier sandbox programs were initially designed for Hong Kong dollar-pegged stablecoins, the prospect of offshore yuan-pegged stablecoins has become a hot topic locally. Chinese tech giants JD.com and Ant Group are lobbying China's central bank to approve offshore yuan-based stablecoins as the global stablecoin race intensifies, according to Reuters.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Top 3 Cheapest Crypto Coins to Invest in — PEPE, VET, BONK
CyberLeek threatens full GTA 6 leak if Solana token hits $30 million
Micron now earns more than Apple! Apple urgently needs chips, Micron holds pricing power.
Micron Technology reported a net profit of $37.7 billion in the fourth fiscal quarter, surpassing Apple's $29.8 billion for the same period, thus becoming the more profitable company for the quarter. The memory shortage has given Micron strong pricing power, with its CEO stating that they “cannot meet customer demand.” The revenue guidance for next quarter is as high as $61.5 billion. Meanwhile, Apple's gross margin continues to be pressured by persistent memory costs, having dropped from 49.3% to a guidance range of 46.5%.
The "Eye of the Storm" in the Global Economy: Debt Crisis in Developed Countries
The IMF warns that developed economies are becoming the "eye of the storm" for global debt risks. Countries such as the United States and France accumulated high levels of debt during periods of low interest rates, but now rising interest rates are pushing up repayment costs, and fiscal consolidation faces political resistance. BofA Securities points out that the United States is facing declining tax revenues, France has structural income decline issues, and the UK and Japan are also under pressure. The deteriorating debt sustainability of developed countries may impact global financial markets through shocks in interest rates and capital flows.
Crypto prices
More
