Hong Kong’s Legislative Council recently approved stablecoin legislation, paving the way for a new licensing regime focused on fiat-backed digital currencies. This landmark move could significantly impact the global stablecoin market. 2025 marks a turning point as institutions like global banks are expected to heavily invest in Hong Kong, seeking stability and growth within the digital asset sector. The new framework offers clear legal guidelines for stablecoin issuance while ensuring stringent compliance measures. This legislation, resembling the EU’s MiCA framework, aligns Hong Kong’s regulatory environment with international standards, potentially leading to increased market confidence and wider adoption of stablecoins.