Breaking news! Cryptocurrency concept stocks surge against the trend! Xing Tai Chain Group once skyrocketed 100%

Hong Kong Stocks’ Cryptocurrency Concept Stocks Surge Against the Market

On February 20th, Hong Kong stocks marked the first trading day of the Lunar Year of the Horse. Major indices experienced oscillations and adjustments, while cryptocurrency concept stocks surged against the trend. Star Tai Chain Group temporarily soared 100%, Lianlian Digital rose over 5%, and OSL Group increased more than 2%. On the previous trading day, related concept stocks all experienced significant gains. According to news, Hong Kong Legislative Council member Wu Jiezhuang revealed that Hong Kong is expected to issue the first batch of stablecoin issuer licenses this March.

Some brokerage institutions believe that the industry is currently in a critical period of policy acceleration and compliance system construction. The speeding up of regulatory pilot programs and legislative processes may push stablecoins from the gray area toward institutional development. In the future, stablecoins are expected to expand continuously in both application breadth and depth.

Sudden Surge

On February 20th, after the Hong Kong stock market opened, cryptocurrency concept stocks surged across the board. Star Tai Chain Group temporarily soared 100%. As of the time of this report by Securities Times, the increase remained over 79%.

On the previous trading day (February 16th), Hong Kong’s cryptocurrency concept stocks collectively strengthened. By the close, Star Tai Chain Group surged over 77%, Guofu Quantum rose over 21%, and Mi Strategy increased over 10%.

Regarding news, Hong Kong Legislative Council member Wu Jiezhuang stated that Hong Kong is expected to issue the first batch of stablecoin issuer licenses this March. He suggested that after licensing, qualified citizens could receive “stablecoin airdrops/consumer vouchers” for local small and medium-sized enterprises’ consumption (such as dining and entertainment) to promote adoption and stimulate the economy. The related administrative costs could be borne by the licensed companies.

Hong Kong SAR Chief Executive John Lee previously stated in his opening speech at the Consensus Hong Kong Conference that the Hong Kong Monetary Authority (HKMA) is actively processing license applications, with the first stablecoin issuer licenses expected to be issued in March.

HKMA Chief Executive Yu Weiwen previously revealed that 36 stablecoin issuer license applications have been received and are under evaluation. The review and research work is nearing completion, and the HKMA aims to issue the first batch of stablecoin licenses in March.

Yu Weiwen pointed out that only a small number of licenses will be issued initially. The HKMA has requested some applicants to provide additional information, such as details of stablecoin application scenarios and risk management, including investment reserve assets. Once all materials are collected, the HKMA will promptly decide whether to issue licenses.

Yu Weiwen emphasized the principles of cross-border activity regulation. He stated that under Hong Kong’s established regulatory framework, any licensed operator involved in cross-border business must comply with the regulations of the jurisdiction where they operate, whether in Mainland China, Singapore, ASEAN, or other markets. “It depends on whether each applicant’s application scenario involves cross-border needs.”

Regarding stablecoins issued outside Hong Kong, Yu Weiwen clarified that if they are to be used by retail investors in Hong Kong, they must obtain a license in Hong Kong, and the issuing entity must establish an office in Hong Kong and keep reserve assets there.

On the corporate side, Star Tai Chain Group recently announced that it has entered into a strategic cooperation framework agreement with China International Digital Financial Group to collaborate on a real-world asset (RWA) gold tokenization project. The goal is to leverage Hong Kong’s regulatory framework to strengthen digital finance positioning and create new revenue streams. According to publicly available information, the project plans to achieve revenue diversification through technology services and ecosystem operations, enhancing the company’s international footprint in digital finance.

How Significant Is the Impact?

As regulatory policies are implemented worldwide, the stablecoin industry is expected to develop in compliance, with ongoing expansion in application scope and depth.

According to a report previously published by Huaxi Securities, stablecoins, characterized by asset anchoring, low volatility, and high clearing efficiency, are gradually becoming important tools for on-chain payments and cross-border settlements. Currently, the industry is in a critical period of policy acceleration and compliance system building. The speeding up of regulatory pilot programs and legislative processes is pushing stablecoins from the gray area toward institutionalization. With advantages in balancing compliance and scalability, a diverse stablecoin ecosystem is expected to form in the future.

CITIC Securities believes that, from a financial logic perspective, fiat-backed stablecoins may become the most accepted and secure mainstream stablecoin type. From a fundamental perspective, fiat stablecoins can continue the core functions of fiat currency—value measurement, transfer, storage, and cross-period value—making them potentially the most important financial medium in the Web3 world. Stablecoins have a significant impact on fiat currency and the issuance rights of fiat currency, with the extent depending on their support for economic activities and the strength of the pegged fiat currency.

According to a Citibank research report, the market capitalization of stablecoins could reach $3.7 trillion by 2030 under optimistic scenarios.

Although Hong Kong has been a pioneer in stablecoin development, the HKMA maintains a cautious attitude, emphasizing risk control.

Yu Weiwen has repeatedly stated that investors should remain rational and be cautious of market and public opinion hype. He publicly mentioned that strict regulatory requirements are likely to limit the short-term rapid expansion of stablecoin businesses, which is expected and understandable. Since regulated stablecoin businesses are still in their early stages, a prudent approach—starting strict, stabilizing, and then gradually relaxing based on practical experience—is more conducive to sustainable and healthy market and issuer development than overly lax regulation that could lead to chaos.

(Article source: Securities Times)