The New Era of Stablecoins: Entrepreneurial Opportunities After the Implementation of Hong Kong Regulations

On May 21, the Hong Kong Legislative Council passed the coin regulation bill in its third reading, marking the official beginning of a new era in stablecoin regulation. This move has sparked widespread attention and discussion within the cryptocurrency industry. However, those who truly understand the industry recognize that this is only the starting point of a new round of game rules. As major stablecoin issuing institutions begin to apply for licenses in Hong Kong, a wealth restructuring drama surrounding the stablecoin ecosystem is quietly unfolding.

For entrepreneurs, the key is to gain insight into the opportunities behind the competition among giants. The new regulatory environment is giving rise to numerous new business tracks, waiting for visionary entrepreneurs to explore.

Stablecoin Issuance: High Barrier Challenges

If you still want to issue stablecoins in Hong Kong and get rich quickly, it is best to give up this idea as soon as possible. This field has become a "game for heavy asset players" for several main reasons:

1. Advantages of Regulatory Sandbox Pioneers: The Hong Kong Monetary Authority established a regulatory sandbox two years ago, nurturing a group of "seed players." These companies are well-prepared in system development, compliance processes, and risk control, making it difficult for new entrants to catch up quickly.

2. Strict financial requirements: The regulations require stablecoin issuers to have sufficient financial resources. A registered capital of HKD 25 million is required, and there must be proof of continuous profitability. This condition is enough to eliminate the vast majority of grassroots entrepreneurs.

3. Strict regulatory standards: The regulations require that reserve assets must be 100% equivalent and can only be invested in highly liquid assets. At the same time, custodians and issuers must be strictly separated, and audit requirements must be transparently real-time. This requires professional financial teams and technical system support.

4. High policy risk: Stablecoins involve issues of monetary sovereignty, and the Hong Kong government will inevitably be cautious when issuing licenses. In the coming years, a "pilot first, steady progress" strategy may be adopted, with a limited number of institutions approved each year, leading to intense competition.

Therefore, small and medium-sized enterprises and startup teams can basically give up the idea of becoming a stablecoin issuer in Hong Kong. This field is more suitable for large institutions with ample funding, rich talent reserves, and strong political and business connections. However, entrepreneurs need not be discouraged; real opportunities often lie in the ecological niches outside the "licensing walls" built by the giants.

Five Core Tracks: Gold Mining Opportunities for Entrepreneurs

Since the direct issuance of stablecoins is difficult, we can change our approach: provide services for issuing institutions or build infrastructure for stablecoin users. The Hong Kong regulations clearly define the boundaries: issuing stablecoins requires a license, but the service scenarios around stablecoins are open. Here are five compliant business opportunities, and I'm sure one of them will match your expertise:

1. PayFi Infrastructure: Earn profits from "stablecoin circulation"

This is the main battlefield for small and medium-sized teams. The regulations clearly encourage the development of stablecoin payment and clearing systems, and the market demand is enormous. Specific opportunities include:

• Cross-border payments: Providing fast and low-cost fund transfer solutions for foreign trade enterprises.
• Merchant Settlement: Providing real-time stablecoin collection and settlement services for retail stores, restaurants, and more.
• Multi-chain settlement: Develop a "cross-chain payment hub" to connect the liquidity of stablecoins across different public chains.

2. Compliance Services: Providing tools for licensed institutions.

The stricter the regulation, the greater the compliance requirements. You can consider developing the following services:

• Anti-Money Laundering Tool: Develop an on-chain transaction monitoring system to help issuers identify suspicious addresses.
• Audit Services: Providing reserve verification and transparent reporting services for stablecoin issuers.
• Regulatory Technology (RegTech): Develop automated compliance report generation tools to simplify complex compliance processes.

3. Cross-chain bridging: Become the "ferryman of the stablecoin world"

With the development of the multi-chain ecosystem, the demand for cross-chain stablecoins is growing increasingly. Opportunities include:

• Develop a cross-chain protocol focused on the security, efficiency, and low slippage of stablecoins.
• Focus on supporting mainstream public chains in the Hong Kong market, such as ETH, Solana, TON, Polygon, etc.
• Use advanced technologies such as zero-knowledge proofs, multi-signature, etc. to ensure security.

4. Stablecoin Asset Management: Let Idle Funds Appreciate

Help users achieve the appreciation of stablecoin, with main directions including:

• Connect to DeFi lending protocols to earn interest spreads.
• Invest in real-world assets (RWA), such as tokenized government bonds.

5. Reserve Asset Management: Providing "concierge" services for stablecoin issuers.

Stablecoin issuers need professional reserve asset management services, including:

• Asset Custody
• Fine-grained audit
• High-frequency asset evaluation
• Government bond allocation strategy and foreign exchange hedging plan

Conclusion

The implementation of the stablecoin regulations in Hong Kong marks a new phase in the global regulatory race for stablecoins. Hong Kong has taken the lead in establishing clear, predictable rules that align with international standards, which itself is a significant institutional dividend.

Entrepreneurs should shift their focus from the "coin issuance" pinnacle to the surrounding ecological niches. Whether creating payment interfaces, selling compliance tools, or operating cross-chain bridges, there are opportunities to carve out a place in this new financial era.

Remember: In the Web3 world, smart entrepreneurs do not confront giants head-on, but carve out their own markets in the corners they overlook. In this new era where licenses reign supreme, compliance is not just the bottom line but the sharpest ticket to entry. Accurately grasping the track and precisely positioning the ecological niche is essential to achieve real success in the wave of stablecoin led by Hong Kong.