OKG Research: Hong Kong stablecoin regulations coming into effect in August, giving Web3 practitioners a three minute quick read On June 6, 2025, the Hong Kong Gazette announced that the Stablecoins Ordinance (Cap 656) will come into effect on August 1, 2025. 📌 Core requirements: one ️⃣ Issuance/circulation must be licensed (issued and continuously supervised by HKMA @ hkmagovhk); two ️⃣ 100% high liquidity reserves (cash, short-term government bonds (T-Bill), and overnight reverse repos, etc.); three ️⃣ Redemption deadline: usually ≤ 1 working day (T+1), and subject to regular audits; four ️⃣ It is strictly prohibited to pay any interest or interest incentives to holders of the currency; five ️⃣ Reserves shall not be used for other purposes and shall not be pooled with other businesses. For the Web3 ecosystem, this system officially incorporates stablecoins into offshore financial infrastructure - compliant stablecoins=settlement units that can be redeemed at any time. Direct impact on the C-end: On chain transmission is almost real-time, fiat currency redemption ≤ T+1, which is expected to compress the transaction fees and arrival time of traditional cross-border wire transfers to a seamless level. Opportunities in the crypto ecosystem: ✅ short-term: ·Can be directly used for borrowing LP、 Cross border payment and other scenarios ·Real time reserve data can be connected to on chain wind control, providing reliable pricing for clearing and insurance 🔄 metaphase: ·Helps traditional financial institutions use stablecoins as a transition channel to enter the chain ·Serve as collateral or settle stable assets in on chain products such as Hong Kong bonds and RWA 🧱 long-term: ·Promote the maturity of on chain risk management modules ·Provide a legal clearing path for on chain funds to enter physical businesses OKG Research's signal to Web3 practitioners The Hong Kong stablecoin regulation is not only a regional regulatory detail, but also a watershed in the Asian blockchain clearing landscape. 🔵 Developer: Stablecoins are evolving towards a "real-time auditable settlement layer" to enhance the security and credibility of funds. 🟡 Institutions and entrepreneurs: Potential payment and RWA scenarios require "compliant stablecoins+real-time redemption"; Compliance first, then expansion, is currently the most certain incremental path. 🟣 Ordinary users: The compliant stablecoins in their wallets will be closer to "cash equivalents", and the high interest narrative will be silenced; The balance between returns and redemption security should be reassessed. Comparison with the GENIUS Act in the United States (see figure below for details) *The GENIUS Act has been passed by the Senate and is awaiting a vote by the House of Representatives and signature by the President. Stablecoin Cap656 HongKongCryptoLaw Web3 RWA DeFiInfrastructure ChainSettlement CryptoInHK RegTech GENIUSACT