The Hong Kong stock market is witnessing a significant rally in stablecoin-related equities. This surge is primarily driven by progressive regulatory approvals and growing institutional adoption of digital assets. Key players in the traditional financial sector are leading the charge, showcasing the powerful convergence of conventional finance and blockchain innovation.
This trend highlights Hong Kong's strategic positioning as a global virtual asset hub. With a clear regulatory framework now in place, major financial institutions are rapidly expanding their service offerings to include virtual asset trading and related products.
Key Performers in the Stablecoin Rally
Guotai Junan International Leads with 18% Surge
Guotai Junan International (01788.HK) emerged as the top performer, with its stock price soaring over 18%. This remarkable jump followed a landmark approval from Hong Kong's Securities and Futures Commission (SFC) on June 24. The firm successfully upgraded its securities trading license to a comprehensive virtual asset trading permit.
This authorization makes it the first Chinese-backed brokerage in Hong Kong to receive such approval. Clients can now directly trade major cryptocurrencies like Bitcoin and Ethereum, alongside leading stablecoins such as USDT (Tether).
The company has been building its digital asset capabilities throughout 2024. It launched exchange-traded funds (ETFs) linked to virtual asset spot prices and initiated the issuance of digital bonds in the first half of 2025. A company executive stated, "We are committed to integrating traditional finance with blockchain technology to provide clients with secure and compliant virtual asset services."
However, analysts note that the company's elevated valuation, with a price-to-earnings (P/E) ratio around 25, has sparked some market debate. Investors are advised to remain cautious of potential regulatory shifts and market volatility.
OSL Group Rides the Wave with 10% Gain
OSL Group (00863.HK) saw its shares climb over 10%, continuing its recent positive momentum. As one of the first publicly listed companies in Hong Kong to secure a Virtual Asset Trading Platform (VATP) license, OSL possesses a distinct first-mover advantage in the stablecoin and crypto trading space.
In 2024, the group partnered with Standard Chartered to launch a stablecoin-based settlement service, which contributed to an approximate 20% year-on-year growth in trading volume. The platform supports major assets including BTC, ETH, and USDT, reporting an average daily trading volume of HK$800 million in 2024.
The CEO of OSL, Pan Zhiyong, commented, "Hong Kong's regulatory framework provides an opportunity for us to balance innovation with compliance. Stablecoins are poised to become a crucial tool for cross-border payments." Despite the optimism, challenges remain, including high operational costs—which accounted for about 35% of revenue in 2024—and increasing competitive pressures that could impact long-term profitability.
China Everbright Limited Shows Steady 5% Growth
China Everbright Limited (00165.HK) demonstrated a stable upward movement, with its stock price increasing over 5%. Market speculation suggests this growth is partly fueled by rumors of the company's potential investment in Circle, a leading global stablecoin issuer.
Throughout 2024, China Everbright Limited actively pursued private equity investments within the blockchain sector, focusing specifically on firms developing stablecoin-related technologies. Its annual financial report indicated that revenue from its fintech segment grew by approximately 15%, making up 12% of its total revenue.
The management team stated, "We are actively exploring the application of stablecoins in asset management to enhance the efficiency of cross-border investments." It is important to note that the company's core business still revolves around traditional finance. The proportion of revenue derived from virtual assets remains limited, indicating a need for further expansion into digital financial services to solidify market confidence.
Core Drivers Behind the Stablecoin Boom
The collective rise of stablecoin-concept stocks in Hong Kong is not an isolated event. It is propelled by several powerful, interconnected factors creating a perfect storm of growth and investor optimism.
1. Progressive Regulatory Clarity: The passing of the Stablecoin Ordinance by Hong Kong's Legislative Council serves as a fundamental catalyst. Scheduled to take effect on August 1, 2025, this legislation provides a clear legal framework for issuing and managing stablecoins. The first batch of approved issuers is expected to include major consortiums, bringing legitimacy and stability to the market.
2. Explosive Global Market Growth: The worldwide stablecoin market has experienced tremendous expansion. In 2024, global stablecoin transaction volume surpassed $12 trillion, representing a 25% increase from the previous year. This massive growth demonstrates rising global demand for digital, dollar-pegged assets for trading, remittance, and settlements.
3. Institutional Adoption and Participation: Traditional financial giants are no longer spectators. Major international banks are launching their own blockchain initiatives and digital currencies, signaling a strong vote of confidence in the underlying technology. This institutional entry reduces perceived risk and attracts more capital into the ecosystem.
The following table provides a snapshot of the key performers:
| Company | Today's Gain | 2024 Revenue (HK$ Billion) | P/E Ratio | Core Business Focus |
|---|---|---|---|---|
| Guotai Junan International | 18% | ~10.5 | 25 | Virtual Asset Trading, Brokerage |
| OSL Group | 10% | ~6.8 | 30 | Cryptocurrency Exchange Platform |
| China Everbright Limited | 5% | ~45 | 12 | Fintech, Investment Management |
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Analysis and Future Outlook
The strong performance of these stocks reflects a robust market optimism toward the virtual asset industry. Hong Kong is cementing its role as a global virtual asset hub, with regulatory maturity and growing demand providing long-term support for the sector.
Guotai Junan International is benefiting from its pioneering license approval, OSL Group is leveraging its established platform and banking partnerships, and China Everbright Limited is gaining from strategic investment rumors. The overall trend indicates a healthy integration of digital assets into mainstream finance.
Nevertheless, investors should maintain a balanced perspective. High valuations and significant operational costs present ongoing challenges. The future success of these companies will depend on their ability to navigate the evolving regulatory landscape while managing costs and continuing to innovate. 👉 Explore more investment strategies for navigating this new asset class.
Frequently Asked Questions
What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to have a stable value, typically pegged to a reserve asset like the U.S. dollar. This stability makes it suitable for transactions, settlements, and storing value without the volatility associated with cryptocurrencies like Bitcoin.
Why is Hong Kong's Stablecoin Ordinance important?
The ordinance provides a comprehensive legal framework for issuing and governing stablecoins in Hong Kong. It establishes licensing requirements, reserve asset rules, and consumer protection measures. This clarity attracts businesses, ensures market stability, and protects investors, fostering healthy industry growth.
How are traditional brokerages involved in virtual assets?
Traditional brokerages are expanding their services to include virtual asset trading, custody, and product creation. This allows their existing client base to access digital assets through familiar, regulated platforms. They act as a bridge, bringing institutional credibility and vast customer networks to the crypto world.
What are the risks of investing in stablecoin-concept stocks?
Key risks include regulatory changes that could restrict business operations, high volatility in the underlying crypto markets, intense competition, and the technological challenges associated with maintaining secure trading platforms. High valuations also increase potential downside risk.
What is the difference between a VATP license and a securities license upgrade?
A VATP license (Type 1 & 7) is specifically for operating a virtual asset exchange. A securities license upgrade (like Guotai Junan's) extends an existing brokerage license to include virtual asset dealing and advising services, allowing them to offer these assets directly to their securities clients.
Will this trend extend to other financial institutions?
It is highly likely. As regulations become clearer and client demand increases, other major banks and brokerages in Hong Kong and across Asia are expected to follow suit, applying for similar licenses and developing their own digital asset offerings to remain competitive.