The global financial landscape is witnessing significant interest in stablecoins, driven by evolving regulatory frameworks and increasing institutional participation. With overseas regulators advancing stablecoin-related rules and Hong Kong's Legislative Council passing the "Stablecoin Bill," the maturation of regulatory mechanisms has positioned stablecoins as a focal point in markets. Recent developments, such as Guotai Junan International's upgraded virtual asset trading service license, have directly contributed to rallies in stablecoin concept stocks and sustained capital inflows into fintech-related ETFs.
In this dynamic ecosystem, several public fund Hong Kong subsidiaries are actively preparing for stablecoin integration. For instance, China Asset Management (Hong Kong) has participated in sandbox tests covering stablecoin issuance, payments, asset connectivity, and fund subscriptions and redemptions. Other subsidiaries are expanding their virtual asset talent pools to oversee product design, issuance, and the development of virtual asset and stablecoin-related product architectures.
Previously, multiple fund subsidiaries had already ventured into the digital asset space, launching Bitcoin ETFs, Ether ETFs, and tokenized money market funds for retail clients.
Fund Subsidiaries Actively Expanding Their Presence
In recent years, regulatory frameworks for stablecoins have become increasingly defined. The "Stablecoin Bill" passed by Hong Kong's Legislative Council, effective August 1, establishes a licensing regime and a 1:1 high-liquidity asset reserve requirement. It also explores the inclusion of RMB as an applicable currency, aiming to create an on-chain stablecoin circulation hub compatible with Hong Kong dollars, RMB, and US dollars.
The recent approval for Guotai Junan International to upgrade its securities trading license to include virtual asset trading services has generated considerable market excitement. This upgrade allows clients to trade Bitcoin, stablecoins, and other virtual assets directly on the platform.
Stablecoins, as the name suggests, are cryptocurrencies designed to maintain a stable value, addressing the extreme volatility seen in mainstream cryptocurrencies like Bitcoin and Ethereum. They are typically pegged to fiat currencies, gold, or US Treasury bonds. With growing regulatory compliance, leading stablecoins now monthly disclose reserve reports and maintain 100% custodial assets. As of May 2025, the global stablecoin issuance scale has exceeded $235 billion.
Recognizing this substantial opportunity, several public fund Hong Kong subsidiaries have been proactively preparing. Even before the formal issuance of stablecoin licenses, participants have been conducting end-to-end testing, with fund subsidiaries playing a key role. For example, China Asset Management (Hong Kong) has participated in multiple sandbox projects led by the Hong Kong government, including the stablecoin sandbox, Project Ensemble, and e-HKD + Pilot (digital Hong Kong dollar). These initiatives cover critical aspects such as stablecoin issuance, payments, asset connectivity, and fund subscriptions and redemptions.
Through collaborations with the Hong Kong Monetary Authority, HSBC, Visa, ANZ, and other major fintech and traditional financial institutions, the company has completed tests for on-chain payments, tokenized fund transactions, and end-to-end fund flow processes.
Previously, Tian Gan, CEO of China Asset Management (Hong Kong), revealed at the China Wealth Management 50 Forum that in the initial phase of the stablecoin sandbox, three institutions—Yuanlei Innovation Technology, JD Coin Chain Technology, and Standard Chartered Bank—were involved. China Asset Management (Hong Kong) has partnered with one potential stablecoin issuer and jointly submitted a cash management proposal to the Hong Kong Monetary Authority. The company continues to work closely with regulators and partners to advance to the next stage of collaboration.
"Once relevant regulatory rules from the Hong Kong Securities and Futures Commission are finalized, we will explore the application of funds within the stablecoin ecosystem, such as enabling investors to use compliant stablecoins for subscriptions and redemptions," said Zhu Haokang, Head of Digital Asset Management and Family Wealth at China Asset Management (Hong Kong). He added that achieving this innovative application could lead to significant growth in fund management scale.
Pioneering the Digital Asset Space
Prior to these developments, several fund Hong Kong subsidiaries had already made前瞻性布局 in virtual asset-related fund issuance. In April 2024, the Hong Kong market officially listed six virtual asset spot ETFs. Bosera Funds (International), China Asset Management (Hong Kong), and Harvest International respectively launched the Bosera Bitcoin ETF, Bosera Ether ETF, ChinaAMC Bitcoin ETF, ChinaAMC Ether ETF, Harvest Bitcoin ETF, and Harvest Ether ETF. These funds directly hold Bitcoin and Ether, supporting both cash subscriptions and in-kind subscriptions (where investors exchange held Bitcoin or Ether directly for ETF shares). Investors can purchase these ETFs through Hong Kong securities brokers.
Among these pioneers, China Asset Management (Hong Kong) has explored further advancements. The company stated that it entered the digital asset space two years ago. In addition to launching Asia's first batch of spot crypto asset ETFs in April 2024, in February 2025, China Asset Management (Hong Kong) issued a Hong Kong dollar tokenized money market fund, also the first retail tokenized fund in Asia. This initiative brings real-world asset tokenization (RWA) to Hong Kong's retail market, with plans to continuously expand the tokenized fund product series. In March, Bosera Funds (International) and HashKey Group's tokenized solution for Hong Kong dollar and US dollar money market ETFs also received approval from the Hong Kong Securities and Futures Commission.
Rapid Team Building and Structure Development
Given the substantial opportunities in the stablecoin market, many fund Hong Kong subsidiaries are moving quickly to secure talent in virtual assets. For example, Bosera Funds (International) recently posted a job opening for a product manager specializing in virtual assets. The role requires at least three years of experience in product work related to virtual assets, fintech, blockchain, electronic mobile payments, or related financial fields.
Responsibilities for this position include designing and issuing virtual asset-related products, managing their entire lifecycle, and integrating traditional financial products with virtual assets and stablecoins. The role also involves researching global trends in virtual assets and stablecoins, monitoring regulatory policies and competitive dynamics, and promoting differentiated product design. Additionally, the position entails building product architectures for virtual assets and stablecoins, covering key modules such as investment, trading, custody, clearing, payments, and income distribution.
In terms of talent structure development, China Asset Management (Hong Kong) noted that during the issuance of its Bitcoin and Ether ETFs last year, the company established a digital asset department and team encompassing product, investment management, business, operations, compliance, legal, and other business functions.
China Asset Management (Hong Kong) expressed its commitment to launching more tokenized fund products in the future. The company aims to facilitate secondary circulation of tokenized funds on compliant trading platforms and explore settlements using digital currencies like stablecoins and the digital Hong Kong dollar to optimize on-chain fund transaction efficiency. These efforts are expected to collectively promote the improvement and development of Hong Kong's digital financial ecosystem.
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Frequently Asked Questions
What are stablecoins?
Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to reserve assets like fiat currencies, commodities, or other financial instruments. They aim to reduce the volatility commonly associated with cryptocurrencies like Bitcoin and Ethereum.
How are stablecoins regulated in Hong Kong?
Hong Kong's Legislative Council passed the "Stablecoin Bill," which establishes a licensing regime and requires stablecoin issuers to maintain 1:1 high-liquidity asset reserves. The bill, effective from August 1, also explores including RMB as an applicable currency to create a multi-currency stablecoin hub.
What role do fund subsidiaries play in the stablecoin ecosystem?
Fund subsidiaries in Hong Kong are actively participating in sandbox tests, developing tokenized funds, and expanding virtual asset talent pools. They are exploring ways to integrate stablecoins into fund subscriptions, redemptions, and settlements, thereby enhancing efficiency and expanding market access.
What are tokenized funds?
Tokenized funds represent traditional financial assets, like shares in a fund, as digital tokens on a blockchain. This allows for faster transactions, increased transparency, and broader accessibility, especially when combined with stablecoins for settlements.
Can investors use stablecoins to purchase ETFs in Hong Kong?
While this functionality is still in development, fund subsidiaries like China Asset Management (Hong Kong) are testing the use of compliant stablecoins for fund subscriptions and redemptions. Once regulatory approval is secured, investors may soon be able to use stablecoins for such transactions.
Why are stablecoins important for the financial industry?
Stablecoins offer the potential for faster, cheaper, and more transparent transactions. They can improve liquidity, enable new financial products, and facilitate cross-border payments, making them a significant innovation in the digital transformation of finance.