Exploring Global Hong Kong: Financing for Stablecoins, Earnings on Stationary Capital, and additional opportunities!
In a significant move for the fintech industry, Hong Kong has introduced a stringent regulatory framework for stablecoin operations, positioning the city as a leading hub in the region. The new regulations, which went live on August 1, 2025, require any person or fintech company engaging in regulated stablecoin activities to obtain a license from the Hong Kong Monetary Authority (HKMA).
One of the companies taking advantage of this new landscape is Airwallex, an international payments and business financial platform. Airwallex has introduced its Airwallex Yield solution in Hong Kong, providing businesses access to highly rated money market funds such as those managed by Fullerton Fund Management and Goldman Sachs Asset Management. The solution enables businesses to earn returns on their surplus funds held in multi-currency accounts without lock-up periods.
Another fintech company, Syfe, a Singapore-based digital wealth platform, has announced that its $80 million Series C round in June will help fuel the firm's regional expansion, including further inroads into Hong Kong. Syfe's business in Hong Kong has "doubled in size" since the beginning of the year, and as of end-of-year 2024, Syfe currently has more than $10 billion in assets under management.
The funding for Syfe comes from a consortium of investors including ZA Global, China Harbour, Bright Venture, Hivemind Capital, HSG, Eternal Digital, CMSC Partners, Guotai Junan International Private Equity Fund, and others. The company, founded in 2019, has now raised a total of $132 million in funding.
Chocolate Finance, a Singapore-based savings app, has also secured regulatory approval to begin operations in Hong Kong. The company has added $19.4 million in Series A+ funding to its coffers. WeBank, a Chinese digital bank, has won approval to set up its Hong Kong subsidiary to manage its overseas operations there. WeBank's Hong Kong subsidiary is expected to investigate potential opportunities in fintech such as real-world asset tokenization.
RD Technologies, a Hong Kong-based stablecoin infrastructure firm, has secured $40 million in Series A2 funding. RD Technologies, which raised $40 million in a Series A1 round in September 2024, is developing HKDR, a stablecoin backed 1:1 by the Hong Kong Dollar, via its subsidiary RD InnoTech.
The new regulations also include anti-money laundering (AML) requirements as part of the licensing conditions. Companies must comply with AML and counter-terrorist financing (CTF) regulations, maintain obligatory risk management, disclosure, and auditing standards. This marks the formal start of a strict regulatory framework treating stablecoins similarly to banks, aiming to ensure financial stability, compliance, and viable use cases in Hong Kong's digital asset ecosystem.
The HKMA plans to issue only a "handful" of stablecoin licenses early next year to avoid overheating the market. Interested parties must contact the HKMA by August 31, 2025, to initiate their licensing application process. WeBank will also be a part of the Hong Kong Monetary Authority's "architecture community" for Project Ensemble, the HKMA's wholesale central bank digital currency initiative.
In a separate development, MoneyBadger and Peach Payments have partnered to make it easier for merchants to accept Bitcoin and other cryptocurrencies. Estonia-based AI-powered investing tools company Lightyear raised $23 million in funding after topping $1 billion in assets. Orange Money and BaaS fintech JUMO have teamed up to offer credit services in Africa.
Forbes recently looked at the connection between African mobile money service, M-Pesa, and Western-based services such as Venmo and PayPal. As the fintech industry continues to evolve, it will be interesting to see how these developments in Hong Kong and beyond shape the future of digital finance.
- Airwallex, a fintech company, has introduced its Airwallex Yield solution in Hong Kong, offering businesses access to investment opportunities in money market funds, such as those managed by Fullerton Fund Management and Goldman Sachs Asset Management.
- Syfe, a digital wealth platform based in Singapore, has expanded its business in Hong Kong this year, managing over $10 billion in assets after raising $80 million in Series C funding.
- The first stablecoin infrastructure firm in Hong Kong, RD Technologies, has secured $80 million in Series A2 funding for the development of HKDR, a stablecoin backed 1:1 by the Hong Kong Dollar.
- The Hong Kong Monetary Authority (HKMA) plans to issue only a few stablecoin licenses in the future and has included anti-money laundering (AML) and counter-terrorist financing (CTF) requirements in the licensing conditions to ensure financial stability, compliance, and viable use cases in Hong Kong's digital asset ecosystem.
- In another development, MoneyBadger and Peach Payments have partnered to help merchants accept Bitcoin and other cryptocurrencies, while AI-powered investing tools company Lightyear raised $23 million in funding after surpassing $1 billion in assets, demonstrating the growth and investment in the fintech sector worldwide.
