Hong Kong Firms Raise $1.5 Billion in Crypto Push Amid Stablecoin Licensing

In July, at least 10 Hong Kong-listed companies raised over $1.5 billion to invest in stablecoins, blockchain payments, and digital assets, signaling a sharp increase in investor interest as Hong Kong prepares to launch its stablecoin licensing regime. Key players like OSL Group, Dmall Inc, and SenseTime Group led fundraising efforts, with OSL raising $300 million in a fast-tracked deal heavily supported by sovereign funds and hedge funds. This surge coincides with Hong Kong's new regulatory framework for stablecoins, effective August 1, which aims to position the city as a leading fintech hub in Asia and a competitor to the U.S. market. A stablecoin-focused stock index in Hong Kong has surged 65% year-to-date, significantly outperforming the broader Hang Seng Index, reflecting strong market momentum. However, regulators, including Hong Kong’s de facto central bank, have cautioned about excessive exuberance and potential frothiness in the crypto sector. Alongside public market activity, private venture capital firms are also actively investing in digital payment startups, underscoring broad enthusiasm for crypto innovation in the region.