June 2, Financial Associated Press (Edited by Hu Jiarong) — Global advancements in stablecoin regulations have sparked increased activity among related concept stocks. At press time, LianLian DigiTech (02598.HK) and OSL Group (00863.HK) surged by 57.88% and 3.10%, respectively.
Key Highlights: Stablecoin Regulatory Developments
Policy Tailwinds Accelerate Adoption
Hong Kong’s Legislative Milestone: On May 30, the Hong Kong Special Administrative Region gazetted the Stablecoin Ordinance, marking its official enactment and strengthening the city’s digital asset regulatory framework. The ordinance, passed after its third reading on May 21, paves the way for compliant stablecoins to launch by year-end.
U.S. Legislative Progress: The U.S. Senate approved the GENIUS Act on May 20, a pivotal step toward stablecoin legislation. Vice President Vance emphasized at Bitcoin 2025 that the bill aims to establish a regulatory framework for USD-pegged stablecoins, bolstering the U.S. economy and dollar hegemony.
UK Regulatory Advancements: On May 27, the UK Financial Conduct Authority proposed rules mandating stablecoin issuers to ensure value stability, disclose reserve management practices, and meet financial robustness standards—clarifying compliance pathways for crypto businesses.
LianLian DigiTech’s Market Outperformance
Amid broader market adjustments, LianLian DigiTech rallied sharply following its partnership with Yuanpei Innovation Technology, a pioneer stablecoin issuer.
Collaboration Details
Yuanpei plans to launch the stablecoin HKDR on Ethereum, collaborating with custody provider Cobo, cross-border payment firm LianLian International, and exchange HashKey. The firm secured $7.8 million in funding in September 2024.
👉 Explore how stablecoins are reshaping global finance
Notably, ZhongAn Online’s shares surged 54.82% last week, buoyed by stablecoin policy optimism.
Understanding Stablecoins
Stablecoins are cryptocurrencies pegged to fiat currencies (e.g., USD). Their blockchain-native design enables deep integration with decentralized finance (DeFi) projects, offering superior scalability.
Historical Context:
- 2014: Tether launched USDT, now the dominant stablecoin backed 1:1 by USD reserves (audited regularly).
- Early projects like BitUSD and NuBits laid the groundwork for today’s ecosystem.
(Financial Associated Press, Hu Jiarong)
FAQ Section
Q1: Why is Hong Kong’s Stablecoin Ordinance significant?
A: It provides legal clarity, attracting crypto businesses and ensuring investor protection within a regulated framework.
Q2: How does the GENIUS Act impact U.S. stablecoins?
A: It creates a federal oversight structure, enhancing trust in USD-pegged stablecoins and their role in global finance.
Q3: What advantages do stablecoins offer over traditional cryptocurrencies?
A: Price stability and seamless integration with DeFi protocols make them ideal for payments and settlements.