Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has released regulatory documents for stablecoin issuance, which will enhance the development of the stablecoin industry and benefit companies with relevant application scenarios [3][5]. Regulatory Details - The regulatory documents include four main components: guidelines for licensed stablecoin issuers, anti-money laundering and counter-terrorist financing guidelines, a summary of the licensing system for stablecoin issuers, and transitional provisions for existing issuers [3][4]. - Applicants must be registered corporations or recognized institutions in Hong Kong, with financial resources of at least HKD 25 million (approximately USD 3.2 million) [4]. - The application process involves several steps, including consultations with the HKMA and relevant regulatory bodies, submission of applications, and processing of applications [4]. - Licensed issuers are required to ensure that reserve assets fully back the stablecoins, which can include cash, short-term bank deposits, and high-liquidity bonds [4]. - Issuers must continuously monitor transactions related to customer wallets to prevent money laundering and terrorist financing risks [4]. Industry Impact - The issuance of stablecoin licenses is expected to be limited initially, with only a few licenses granted, prioritizing companies with cross-border payment applications [5]. - Companies involved in cross-border payments and real-world asset (RWA) scenarios are likely to benefit the most from the regulatory developments [5].