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Fintech firms are rushing to raise funds in Hong Kong as the city prepares to launch its long-awaited stablecoin licensing regime, drawing a fresh wave of investor interest in crypto and digital finance.
At least 10 Hong Kong-listed companies raised more than $1.5 billion through share placements in July to invest in stablecoins, blockchain payments, and digital assets, according to Reuters calculations based on stock exchange filings.
Among the names tapping into the rally are OSL Group, China’s top retail cloud provider Dmall Inc, and AI heavyweight SenseTime Group. All said the funds will support expansion into digital finance.
The fundraising flurry comes as Hong Kong starts accepting applications on Friday for stablecoin issuer licences, under a new law passed in May. The move puts the city in direct competition with the U.S. in establishing a regulated market for these dollar-pegged tokens, which are gaining traction as a bridge between crypto and traditional payments.
Before the law, investor appetite for stablecoin-linked projects in the city had been lukewarm.
OSL, a digital asset platform, raised $300 million in late July to support global initiatives, including stablecoin development and a digital payment network. The deal was wrapped up in three days, with demand from sovereign funds and major hedge funds filling the book in under three hours.
“Investor zeal around stablecoins and crypto was palpable,” said Ivan Wong, OSL’s chief financial officer.
A stablecoin-focused stock index tracking Hong Kong-listed firms in the space has surged 65% this year — handily beating the 23% gain in the benchmark Hang Seng Index.
Still, regulators are watching closely. Hong Kong’s de facto central bank issued a warning last week about “frothiness” and “excessive exuberance” in the market.
Private Capital Piles In
The boom isn’t limited to public markets. Private investors and venture firms are jumping in too.
“VCs are actively hunting for opportunities,” said Liu Honglin of Shanghai-based Man Kun Law Firm, who advised payments startup Kun on a $50 million raise in Hong Kong last month. “There’s real excitement around stablecoins, but we’re far from a bubble — this is just getting started.”
Companies like JF SmartInvest raised HK$785 million to back projects in so-called Real World Assets (RWAs), a catchall for tokens tied to traditional assets like stocks and commodities. SenseTime raised HK$2.5 billion and said part of the proceeds would be used to explore blockchain, RWAs, and stablecoin technologies.
Others riding the wave include ZA Online, Crypto Flow Technology, and Easou Tech (2550.HK).
Traditional finance firms aren’t sitting it out either. “There’s growing interest across the board — from custodians to asset managers,” said Kishore Bhindi, partner at Linklaters in Hong Kong. “Fintech and blockchain remain hot topics.”
