Stablecoins are no longer just a crypto market curiosity—they’ve become a cornerstone of the evolving digital finance ecosystem. With global regulators advancing clear frameworks and Hong Kong’s Legislative Council passing the Stablecoin Bill, the regulatory foundation is solidifying. This shift has elevated stablecoins into the spotlight, attracting financial institutions, tech innovators, and investment managers alike. Notably, asset management subsidiaries in Hong Kong are stepping up their involvement, actively exploring stablecoin integration across fund operations, payments, and asset tokenization.
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Regulatory Clarity Fuels Market Confidence
One of the most significant catalysts for stablecoin adoption has been the progress in regulatory oversight. Hong Kong’s upcoming Stablecoin Ordinance, set to take effect on August 1, establishes a comprehensive licensing regime backed by full reserve requirements—mandating that each issued stablecoin be 100% backed by high-liquidity assets such as cash or short-term government securities. The framework also opens the door to including the Chinese yuan as an eligible pegged currency, aiming to position Hong Kong as a multi-currency stablecoin hub linking HKD, USD, and RMB on-chain.
This clarity has boosted investor confidence and encouraged traditional financial players to enter the space. Recently, Guotai Junan International received approval from the Securities and Futures Commission (SFC) to upgrade its securities trading license to include virtual asset trading services. This allows clients to trade Bitcoin and stablecoins directly on its platform—a move that triggered a surge in fintech stocks and related ETFs.
Fund Managers Dive Into Stablecoin Ecosystems
Amid this transformation, several mainland-affiliated fund subsidiaries based in Hong Kong are actively preparing for deeper integration with stablecoins. These firms are not only monitoring developments but participating in foundational tests through regulatory sandboxes.
For instance, China Asset Management (Hong Kong)—commonly known as ChinaAMC (HK)—has joined multiple government-led pilot programs, including the Stablecoin Sandbox, Project Ensemble, and the e-HKD + Pilot for digital Hong Kong dollars. Their participation spans critical use cases: stablecoin issuance, cross-border payments, asset tokenization, and even using stablecoins for fund subscriptions and redemptions.
By collaborating with major institutions like the Hong Kong Monetary Authority (HKMA), HSBC, Visa, and ANZ Bank, ChinaAMC (HK) has successfully tested end-to-end processes such as on-chain settlements, tokenized fund transactions, and real-time capital flows.
“We’ve already partnered with one of the prospective stablecoin issuers—Circle Innovation Technology—and jointly submitted a cash management proposal to the HKMA,” said Timothy Kam, CEO of ChinaAMC (HK), during a recent CWM50 forum. “We’re now in active discussions to advance to the next phase.”
The long-term vision is clear: once full SFC regulations are implemented, investors may soon be able to subscribe to mutual funds or redeem shares using compliant stablecoins—a move expected to significantly expand fund scalability and operational efficiency.
Pioneering Tokenized Funds and Real-World Asset Integration
Before diving into stablecoins, many of these fund houses had already made bold moves into digital assets. In April 2024, six spot cryptocurrency ETFs launched in Hong Kong, offering direct exposure to Bitcoin and Ethereum. Among the issuers were Bosera International, ChinaAMC (HK), and Harvest Fund International—each launching both Bitcoin and Ethereum ETFs.
These ETFs support both cash subscriptions and in-kind creations (where investors deposit actual crypto for ETF shares), making them accessible via traditional brokerage accounts.
But ChinaAMC (HK) didn’t stop there. In February 2025, it launched Asia’s first retail tokenized money market fund denominated in Hong Kong dollars—marking a milestone in bringing Real-World Assets (RWA) on-chain for everyday investors. This innovation enables fractional ownership, faster settlement, and enhanced liquidity—all built on blockchain infrastructure.
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Further momentum came in March 2025 when Bosera International’s tokenized HKD and USD money market ETF proposal—developed in partnership with HashKey Group—received SFC approval, signaling growing institutional acceptance of blockchain-based financial products.
Building Expertise: Talent and Infrastructure Development
To sustain this digital evolution, fund managers are rapidly building internal capabilities. Recognizing the need for specialized knowledge, Bosera International recently posted a job opening for a Virtual Asset Product Manager, seeking candidates with at least three years of experience in blockchain, fintech, or digital payments.
Key responsibilities include:
- Designing and launching virtual asset products
- Managing full product lifecycles
- Bridging traditional finance with crypto-native solutions
- Researching global market trends and regulatory landscapes
- Developing comprehensive product architectures covering investment, custody, clearing, payment, and yield distribution
Meanwhile, ChinaAMC (HK) revealed it established a dedicated digital assets team well before its ETF launches in 2024. The unit includes professionals across product development, investment management, operations, compliance, and legal functions—ensuring end-to-end expertise in managing blockchain-based offerings.
Future Outlook: From Innovation to Mainstream Adoption
Looking ahead, ChinaAMC (HK) plans to expand its suite of tokenized funds and enable secondary market trading on regulated platforms. The firm is also exploring settlement using digital currencies—including stablecoins and the prospective e-HKD—to improve transaction speed and reduce counterparty risk.
Such initiatives align with broader goals: transforming Hong Kong into a global leader in digital finance by merging regulated finance with decentralized technology.
Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar, Hong Kong dollar, or gold. It combines the efficiency of blockchain with price stability.
Q: Why are fund companies interested in stablecoins?
A: Stablecoins enable faster settlements, lower transaction costs, and seamless integration between traditional finance and blockchain systems—making them ideal for fund subscriptions, redemptions, and cross-border payments.
Q: What does “tokenized fund” mean?
A: A tokenized fund represents ownership of a traditional financial product (like a money market fund) using blockchain tokens. This allows for 24/7 trading, instant settlement, and programmable features like automatic dividend distribution.
Q: Are stablecoins safe?
A: Regulated stablecoins—especially those subject to regular audits and 100% reserve requirements—are considered low-risk. However, investors should always verify transparency reports and issuer credibility.
Q: Can retail investors use stablecoins for fund investing?
A: Not yet widely available, but pilot programs in Hong Kong are testing this functionality. Once approved by regulators like the SFC, compliant stablecoins could be used for purchasing funds directly.
Q: How do stablecoins relate to central bank digital currencies (CBDCs)?
A: While both operate digitally, CBDCs are issued by central banks (like a digital HKD), whereas stablecoins are typically issued by private entities but may be pegged to official currencies. They can coexist and interoperate within the same financial ecosystem.
The convergence of regulation, technology, and institutional innovation is accelerating the adoption of stablecoins in asset management. As more fund subsidiaries refine their strategies and infrastructure, the line between traditional finance and digital assets continues to blur—ushering in a new era of efficient, inclusive, and globally connected investing.
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