Huaxing Capital's Shi Ziyuan: The implementation of Hong Kong's stablecoin regulations will attract more mainstream institutions into the digital asset financial ecosystem

On August 1, 2025, Hong Kong's "Stablecoin Regulation" officially came into effect, with the Hong Kong Monetary Authority setting a 6-month transition period and expecting to issue the first stablecoin issuer license early next year. In terms of license issuance, the Monetary Authority emphasizes three major licensing requirements: compliance, specificity, and sustainability. License applicants must meet regulatory requirements and have specific business plans and application scenarios. Overall, the regulation establishes a legal foundation and regulatory framework for the landing and promotion of stablecoins in Hong Kong, and the digital asset industry in Hong Kong will welcome a clearer and more predictable development environment.

In this regard, Shi Ziyuan, head of proprietary investment at Huaxing Capital, stated: "Through the Digital Asset Declaration 2.0, the 'Stablecoin Regulation,' and licensing guidelines, Hong Kong continuously injects confidence and vitality into the healthy development of the digital asset industry. The legalization and compliance of stablecoins will help attract more mainstream institutions, quality capital, and innovative enterprises to enter the market, promoting the construction, development, and maturation of Hong Kong's digital asset industry financial ecosystem."

Previously, Huaxing Capital successfully invested in Circle Internet Group and provided listing and multiple financing-related services for numerous leading digital asset enterprises. In June 2025, Huaxing Capital Holdings (01911.HK) announced that, following a board resolution, it would officially enter the Web 3.0 and digital asset fields while solidifying its existing business, approving a budget of $100 million to be used over the next two years for the group's development of Web 3.0 business and investment in digital assets.

This resolution marks Huaxing Capital's first step into the Web 3.0 and digital asset fields, aiming to respond to a series of positive policies launched by the Hong Kong government in recent years to support the development of the Web 3.0 and digital asset industries, leading the development of innovative technology fields. Huaxing Capital believes that Web 3.0 and digital assets have enormous future development potential and align with global financial and business development trends.

Shi Ziyuan further stated: "Huaxing Capital is committed to building a bridge between the Web 2.0 and Web 3.0 worlds. The company will continue to actively embrace the Web 3.0 and digital asset industry, empowering Hong Kong's digital industry ecosystem through investment banking services, strategic funds, direct investments, and other professional capabilities and quality resources. We will apply to expand the coverage of Hong Kong Securities and Futures Commission licenses 1, 4, and 9 to include digital asset businesses; and we look forward to collaborating with industry partners to increase investment and construction efforts in digital asset financial infrastructure, on-chain ecosystems, and RWA assets, jointly promoting the innovative and stable development of the industry, and helping Hong Kong build a global digital asset center."