The post Hong Kong to Issue First Stablecoin Licenses in March appeared first on Coinpedia Fintech News
Hong Kong (HK) is preparing to issue its first stablecoin licenses in March, marking a major step in its plan to become a global leader in digital assets. The new licensing system will allow approved companies to issue fiat-backed stablecoins under clear regulatory oversight. This move will improve investor trust and attract global crypto firms to Hong Kong.
Financial Secretary Paul Chan announced the move in the 2026–27 budget speech, adding that Hong Kong has already introduced a licensing framework.
He said that the regulators will work closely with licensed companies to ensure compliance, risk control, and financial stability.
Crypto markets widely use stablecoins for trading, payments, and cross-border transfers. By introducing clear regulations, Hong Kong aims to create a safer environment for stablecoin adoption.
This makes Hong Kong one of the few major financial centers providing regulatory clarity for stablecoins.
Hong Kong regulators are also working to improve market liquidity and expand services for professional investors.
Alongside stablecoin licensing, Hong Kong is also developing its digital asset infrastructure. The Hong Kong Monetary Authority (HKMA) launched the pilot phase of “Project Ensemble,” which explores tokenized deposits and digital asset transactions.
CMU Omniclear, a subsidiary of HKMA, is also working on a digital asset platform to support the issuance and settlement of tokenized bonds.
The government is introducing guidelines and support programs to promote tokenization and enable blockchain-based asset issuance.
These efforts aim to modernize Hong Kong’s financial system and improve efficiency.
The global stablecoin market is valued at over $314.8 billion, with major stablecoins such as USDT and USDC dominating usage.
Hong Kong’s licensing framework could attract new stablecoin issuers and increase competition in the regulated stablecoin sector. Regulated stablecoin systems are essential for institutional adoption, as financial institutions require legal clarity and secure infrastructure.
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Hong Kong is scheduled to issue its first stablecoin licenses in March 2026, as announced in the Financial Secretary’s budget speech.
Hong Kong is regulating stablecoins to enhance investor protection, ensure financial stability, and attract global crypto firms by providing clear compliance rules.
The new licenses are expected to increase competition among regulated issuers, potentially challenging current leaders like USDT and USDC by offering a secure, compliant alternative.
The post RedotPay Eyes $1B U.S. IPO as Stablecoin Payments Expand appeared first on Coinpedia Fintech News
Stablecoin payments firm RedotPay is reportedly considering a U.S. stock market listing that could raise up to $1 billion. The company previously secured $107 million in a Series B round led by Goodwater Capital, with participation from Pantera Capital, Blockchain Capital and Circle Ventures. RedotPay says it serves over 6 million users across 100+ markets.
The post Standard Chartered Forecasts Stablecoin Growth to Fuel $1 Trillion in New T-Bill Demand by 2028 appeared first on Coinpedia Fintech News
According to new research from Standard Chartered, the companies behind stablecoins are on track to become some of the biggest buyers of U.S. Treasury bills. Standard Chartered suggests that the U.S. government might start selling more short-term debt to keep up with this new demand. To make room for all those extra T-bills, the Treasury could even hit the “pause” button on its 30-year bond auctions for a few years.
Standard Chartered analysts Geoffrey Kendrick and John Davies expect the stablecoin market to explode to $2 trillion by the end of 2028. As this market grows, companies like Tether and Circle will need to buy massive amounts of “safe” assets to back them up.
This surge is turning stablecoin issuers into some of the biggest customers for U.S. government debt. The analysts predict that these companies will likely buy between $800 billion to $1 trillion in short-term Treasury bills (T-bills) to use as reserves.
Also read: Crypto Bloodbath Today: Why Altcoins, Bitcoin Collapsed and What Comes Next
If the government keeps selling debt the way it does now, there won’t be enough T-bills to go around. As a result, demand could outpace supply by about $900 billion over the next three years.
As of now, the stablecoin market has grown to an estimated $300–$320 billion in total value. Companies like Tether and Circle (CRCL) have become significant investors in short-term U.S. government debt. To back tokens like USDT and USDC, they hold large reserves, much of which is invested in Treasury bills.
Tether has reported Treasury bill holdings comparable to those of some mid-sized countries, highlighting the scale of its reserves. Circle likewise maintains a substantial portion of its backing assets in short-term Treasuries, often through money market funds designed to hold highly liquid government securities.
According to the report, shifting that amount of demand away from longer-term bonds could effectively pause 30-year Treasury auctions for as long as three years. By reducing the supply pressure on long-dated debt, such a move could also help relieve upward pressure on long-term yields.
Although it is not the bank’s main forecast, analysts see the 10-year Treasury yield climbing to about 4.6% by the end of 2026. They cautioned that growing demand for short-term government debt could create supply tightness at the front end of the yield curve.
Stablecoin expansion has slowed in recent months, hovering just above $300 billion in total market value. That is still higher than the roughly $238 billion recorded in April 2025, but momentum has cooled as cryptocurrency prices declined in recent weeks. Bitcoin, for example, has dropped more than 50% from its October 2025 high of $126,000, reducing trading activity and the associated demand for stablecoins.
Despite these pressures, Standard Chartered considers the slowdown temporary. The bank argues that stablecoins could generate nearly $1 trillion in additional demand for Treasury bills by 2028.
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