Hong Kong Treasury Secretary: Stablecoin reserve assets can only be placed in high-quality, highly liquid assets

PANews reported on July 5 that according to the Hong Kong Special Administrative Region News Bulletin, Hong Kong Financial Services and the Treasury Bureau Director Paul Chan said in his speech at the Hong Kong Digital Finance Awards 2025 ceremony that the licensing system for stablecoin issuers will help promote the development of real application scenarios and solve the pain points faced by the real economy. Proper requirements have been set in reserve asset management, stabilization mechanisms, redemption processes and prudent risk management. For example, reserve assets cannot be lower than the value at which they can be redeemed at any time. At the same time, reserve assets can only be placed in high-quality, highly liquid assets. Market participants are welcome to make suggestions to see how the government can take the lead in testing and using licensed stablecoins.