Core Viewpoint - The "Hong Kong Digital Asset Development Policy Declaration 2.0" introduces a "LEAP" framework aimed at establishing a trustworthy, sustainable digital asset ecosystem integrated with the real economy in Hong Kong [1][4]. Group 1: Policy Framework and Objectives - The "LEAP" framework focuses on optimizing legal and regulatory frameworks, expanding tokenized product categories, promoting application scenarios and cross-industry collaboration, and developing talent and partnerships [1][4]. - The declaration signifies a shift from Hong Kong being a testing ground for digital assets to a more institutionalized, scaled, and global approach [4]. Group 2: Market Reactions and Developments - After the announcement, Guotai Junan International became the first Chinese broker in Hong Kong to offer comprehensive virtual asset trading services, with its stock price experiencing significant fluctuations, rising from HKD 1.24 to a peak of HKD 7.02 [1]. - The implementation of the "Stablecoin Regulation" on August 1 has led to increased activity in stablecoin-related stocks [1]. Group 3: Broker Participation and Services - Multiple local brokers in Hong Kong, including Shengli Securities and Ade Securities, have completed the upgrade for virtual asset trading licenses, indicating a growing interest in the sector [5][6]. - Brokers are primarily offering distribution services rather than operating their own exchanges, facilitating trading of compliant cryptocurrencies like Bitcoin and Ethereum [5][6]. Group 4: Regulatory Environment - The Hong Kong Securities and Futures Commission (SFC) applies a "same business, same risk, same regulation" principle, ensuring that virtual asset activities are regulated similarly to traditional financial services [8]. - Key license types include the upgraded Type 1 license for virtual asset trading (distribution), Type 4 for investment advice, and Type 7 for automated trading services [8]. Group 5: Security and Compliance - Guotai Junan International's advantage lies in its compliance and security measures, as it connects to SFC-licensed exchanges that ensure professional custody of client assets and adhere to strict anti-money laundering (AML) and know-your-customer (KYC) processes [10]. - However, the limited number of tradable assets and lower market liquidity compared to overseas platforms may pose challenges for local exchanges [10]. Group 6: Future Opportunities with Stablecoins - The upcoming issuance of stablecoin licenses is expected to create synergies with existing trading licenses, enhancing the role of licensed institutions as distribution channels for compliant stablecoins [11][12]. - The global stablecoin market is projected to exceed USD 200 billion by the end of 2024, with significant trading volumes anticipated [11]. Group 7: Digital Twin Assets and Market Evolution - The declaration aims to activate "digital twin assets," allowing real-world assets to be tokenized and traded, bridging the gap between traditional finance and Web3 [15]. - Future tokenization efforts will include various asset classes such as precious metals and green energy, indicating a broader ambition for Hong Kong's digital asset landscape [15].

Core Viewpoint - The article discusses the recent surge in interest and investment in stablecoins within the A-share market, driven by regulatory developments and the performance of major stablecoin companies like Circle, which has seen its stock price increase by over 675% since its NYSE listing [2][10]. Group 1: Stablecoin Market Overview - Stablecoins have surpassed Bitcoin and Ethereum in trading volume, with USD stablecoins reaching a trading volume of $100.7 billion as of June 1, 2025 [10][12]. - The stablecoin market has evolved significantly since the launch of Tether (USDT) in 2014, with over 160 types of stablecoins in circulation by 2024, supported by clearer regulations such as the EU's MiCA framework [3][4][18]. Group 2: Types of Stablecoins - Stablecoins can be categorized into four types: fiat-collateralized, crypto-collateralized, algorithmic, and commodity-collateralized, with fiat-collateralized being the most prevalent [5][6]. - The collateralization rates vary, with fiat-collateralized stablecoins requiring 100% collateral, while algorithmic stablecoins rely on market mechanisms to maintain stability [6][5]. Group 3: Functions and Adoption of Stablecoins - Stablecoins serve three main functions: value storage, transaction tools, and payment methods, with increasing adoption in value storage indicating a preference for stable assets [7][9]. - The use of stablecoins in cross-border payments is growing, particularly in regions with economic instability, as they offer a fast and low-cost alternative to traditional banking systems [9][10]. Group 4: Regulatory Developments - Regulatory frameworks for stablecoins are being established globally, with significant developments in the US and Hong Kong, including the passage of the GENIUS Act and the introduction of a licensing system for stablecoin issuers in Hong Kong [15][16][18]. - These regulations aim to enhance the legitimacy and compliance of stablecoins, potentially driving further market growth [17][18]. Group 5: Companies Involved in Stablecoin Business - Several A-share companies are actively involved in the stablecoin sector, including Sifang Jingchuang, which provides IT services for virtual asset projects, and Hengfu Co., which is engaged in digital currency solutions [24][22]. - The article lists various companies and their respective stablecoin-related activities, highlighting significant stock price increases in this sector [24][22].