appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Peggy Sito

Hong Kong’s Stablecoins Ordinance marks a significant milestone, as cross-border payments using the cryptocurrency can facilitate trade-finance flows between Hong Kong, mainland China and global markets such as the Middle East, according to the CEO of Zand, an AI-powered fintech and financial-services group in the United Arab Emirates (UAE).
Future development under the ordinance could help Hong Kong rebuild its role in expediting trade and exports between mainland China and global markets, said Michael Chan.
“The city’s traditional re-export role for mainland China has been diminishing as direct trade through mainland ports grows,” said the Hong Kong-born graduate of City University of Hong Kong. “But its role as the middleman in the digital trade-finance segment could be revitalised.”
“A stablecoin is more time and cost effective [than traditional currency], as a reliable corridor with greater transparency, plus programmability features, such as automation of conditional payments and escrow, integrated compliance checks and real-time [foreign exchange] rates.”
Chan joined Zand as CEO in November 2022 and led the bank to break even in just 22 months. Zand also became one of the youngest banks to achieve an investment-grade rating from Fitch Ratings, a BBB+. The bank has also obtained in-principle approval from the central bank of the UAE to offer a dirham stablecoin.
Hong Kong rolled out the Stablecoins Ordinance on August 1, setting a global standard in the cryptocurrency sector as it kick-started the application process for potential issuers in line with a broader effort to be a leading digital asset hub connected to China’s vast economy. The ordinance aims to ensure a prudent approach for the issuance of stablecoins, a type of cryptocurrency backed by fiat currencies or other reserve assets.
Some players have described the regime’s upfront capital requirement of HK$25 million (US$3.2 million) as a barrier for smaller firms.
Chan said the regime in the UAE was similar.

“The issuance of stablecoins can be only by banks, and it requires initial and ongoing capital of about HK$32 million, plus additional capital of at least 0.5 per cent of the fiat currency face value of the outstanding stablecoin,” Chan said.
Chan described the potential future development of stablecoins in Hong Kong as an opportunity for yuan internationalisation.
Enabling conversion between eCNY and Hong Kong dollar-linked stablecoins would integrate the Chinese digital currency into global digital asset flows for cross-border settlement, he said.
Hong Kong has collaborated closely with the mainland on cross-border initiatives in digital currency. For instance, starting in June, the 17 million registered users of Hong Kong’s Faster Payment System will be able to remit up to HK$10,000 per day from each bank account to 298 million users of the mainland’s Internet Banking Payment System via the Payment Connect.
According to KPMG, the global stablecoin market had exceeded US$250 billion or 7.48 per cent of total cryptocurrency market cap, with a compound annual growth rate exceeding 80 per cent over the past five years.
In October, Zand partnered with IDA, a Hong Kong-based stablecoin issuer, to offer cost-effective and efficient cross-border transactions across the Belt and Road Initiative region and the Brics-plus countries.
It also partnered with Evident Group, an operator of a digital investment platform for alternative assets that is licensed by Hong Kong’s Securities and Futures Commission, to provide the Dubai-based bank’s clients with investment opportunities through Evident’s tokenisation technology and infrastructure.
“Apart from Evident, we also collaborate with many Hong Kong-based and Asian-based firms that are interested in stablecoin development, as they are keen on our well-developed blockchain infrastructure platform,” Chan said.
“We are not a digital bank. We are a fintech firm with a banking licence, powered by AI and blockchain, and we are seamlessly bridging traditional finance and decentralised finance to unlock growth opportunities for clients to thrive in the digital economy.”


HSBC, Hang Seng to unify staff benefits across Hong Kong from January: internal memos

Morgan Stanley deal leak triggers rival poaching, security warnings for Hong Kong banks

Shanghai Gold Exchange pushes more Chinese banks to end retail leverage trading

US 30-year mortgage rates top 7%, highest in Trump presidency

Banking & finance

Hong Kong stablecoin rules to upgrade city’s trade-finance role: UAE digital banker

Cross-border payments using stablecoins can facilitate trade-finance flows, according to Zand CEO Michael Chan. Illustration: Shutterstock

Michael Chan, CEO of United Arab Emirates-based Zand. Photo: Handout

Hong Kong can lead charge for yuan alternative to US stablecoin

Illustration: Stephen Case

Tether’s stablecoin, also known as USDT, and Circle’s USDC already command over 90 per cent of the global stablecoin market. Photo: Shutterstock

Standard Chartered-led joint venture Anchorpoint to apply for Hong Kong stablecoin licence

Standard Chartered’s partners in the Anchorpoint Financial joint venture are Animoca Brands and Hong Kong Telecommunications. Photo: Nathan Tsui

ChinaAMC launches world’s first tokenised yuan fund amid Hong Kong stablecoin push

ChinaAMC (HK) on Thursday launched the world’s first yuan-denominated tokenised fund. Photo: Shutterstock

Hong Kong set to issue first stablecoin licences ‘early next year’

Stablecoins are cryptocurrencies backed by a reference asset, typically a fiat currency like the US dollar. Photo: Shutterstock

Hong Kong stablecoin regime a ‘double-edged sword’ for market’s growth, analysts say

Hong Kong kick-started the application process for potential stablecoin issuers on Friday. Photo: Shutterstock

US President Donald Trump holds the signed Genius Act, which will develop a regulatory framework for stablecoin cryptocurrencies, at the White House on July 18, 2025. Photo: Reuters

Business

Banking & Finance

News

Hong Kong

City could rebuild its role in expediting trade between mainland China and global markets, CEO of United Arab Emirates’ Zand says


City could rebuild its role in expediting trade between mainland China and global markets, CEO of United Arab Emirates’ Zand says.


Hong Kong stablecoin rules to upgrade city’s trade-finance role: UAE digital banker

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}City could rebuild its role in expediting trade between mainland China and global markets, CEO of United Arab Emirates’ Zand says

City could rebuild its role in expediting trade between mainland China and global markets, CEO of United Arab Emirates’ Zand says