On May 21, 2025, Hong Kong took a major step in the cryptocurrency sector by approving a law establishing a regulatory framework for fiat-backed stablecoin issuers. The Hong Kong Monetary Authority (HKMA) will now require a license for any entity issuing stablecoins in Hong Kong or pegged to the Hong Kong dollar.
JD CoinChain Technology, a subsidiary of Chinese tech giant JD.com, has entered the second phase of the HKMA’s sandbox program, testing its stablecoin pegged 1:1 to both the Hong Kong dollar and the US dollar. The project aims to facilitate both cross-border and retail payments, with mobile and PC apps available for users.
JD CoinChain CEO Liu Peng expressed excitement about the project, emphasizing the importance of a clear regulatory framework for the safe and sustainable development of stablecoins. The collaboration between JD CoinChain and the HKMA demonstrates how regulators and companies can work together to foster innovation in the financial sector.
With specific regulations for stablecoins in place, Hong Kong is positioning itself as a global hub for digital assets, promoting a favorable environment for innovation and sector growth.
