A month after Hong Kong's Stablecoin Bill came into effect, the digital asset industry's attention to stablecoin RWA continues to surge. In an exclusive interview, Yat Siu, founder of Animoca Brands, a key player in the Web3 space, shared his insights. Animoca Brands is not only one of the applicants for Hong Kong's stablecoin license but also an early participant in the stablecoin sandbox program. Siu provided deep insights into industry trends, regulatory frameworks, and practical applications during the interview, covering Hong Kong's stablecoin development, regulatory environment, application scenarios, and Web3 ecosystem strategies.

**Stablecoin Bill's First Month: Large Enterprises Rush into "Blue Ocean" Market, But License Issuance Will Be "Selective"**

Siu noted that in the month since Hong Kong's Stablecoin Bill took effect, market excitement about Hong Kong stablecoins and RWA is evident, but the industry needs to pay closer attention to clear signals from regulators. The threshold for stablecoin license applications is extremely high, and the Hong Kong Monetary Authority (HKMA) "will not issue too many licenses."

According to the HKMA's September 1 announcement, 77 applications of intent were received in August from institutions including banks, technology companies, securities/asset management/investment firms, e-commerce platforms, payment institutions, and startups/Web3 companies. However, the HKMA will not disclose the list at this stage and reiterated that only a few stablecoin licenses will be approved in the initial phase.

Siu compared stablecoin licensing to "5G license" issuance logic. "Licenses will be granted to qualified entities, but definitely not in a 'rain falls on everyone' manner—selection will be extremely cautious." This means not all companies need to directly hold stablecoin licenses. "Like 5G licenses, companies without licenses can use licensed operators' infrastructure and participate as Mobile Virtual Network Operators (MVNOs) or distributors." Siu believes the future stablecoin sector will present an ecosystem pattern of "few licensed parties + many partners."

Animoca Brands is also a stablecoin license applicant. The company previously partnered with Standard Chartered Bank and Hong Kong Telecom to establish a joint venture, hoping to issue HKD-pegged stablecoins under the HKMA's stablecoin issuance sandbox program. Siu believes the "Web3 company + major bank + Hong Kong's largest telecom company" collaborative structure can provide customers with secure, stable, and comprehensive services. "We want to prove through this structure that stablecoins are not ordinary consumer products. They must be as stable and secure as banks, with trusted infrastructure like Hong Kong Telecom that can reach Web3 users in Hong Kong and globally, while Animoca's accumulation in the Web3 consumer sector can also cover this demand."

**Regulatory Framework "Optimized While Operating": HKD Stablecoins as Validation Model**

Analysts expect the HKMA to be more cautious than the market anticipates, considering factors including extraterritorial jurisdiction and coverage scope. Companies hope to seize issuance opportunities—large tech companies with substantial mainland users want to issue stablecoins for e-commerce payments, while traditional financial institutions focus on cross-border settlements.

Regarding Hong Kong's current stablecoin regulatory framework, Siu believes that as one of the earliest specialized regulatory systems globally, Hong Kong's "first implementation" allows for subsequent adjustments based on "practical learning" logic. Once the mechanism operates stably, regulators may continuously review other regions' regulatory situations and potentially adjust regulations to maintain Hong Kong's attractiveness in the global market.

"First, we must clarify that this framework is still under public consultation and needs to accumulate experience through operation." Siu noted that the HKD stablecoins currently focused on by the market are essentially a "sandbox program." Hong Kong's regulatory approach is "let the system run first, then optimize based on actual conditions," ensuring both safety and reliability while maintaining forward-looking perspectives. For instance, if future consideration extends stablecoin currency types beyond HKD, current HKD stablecoin operational data and experience will become important adjustment references.

In his view, regulatory framework "flexibility" is a necessary condition for adapting to innovation. "Digital assets and Web3 are still rapidly developing, and regulation cannot be perfected in one step. First validating models through HKD stablecoins, solving problems, then gradually improving—this better balances innovation and risk."

**What Can Stablecoins Bring Users? Can Users Trust These "New Things"?**

Siu believes market understanding of stablecoins remains at an elementary stage. To promote broader stablecoin acceptance, official regulation and enterprise technology must form a "dual-wheel drive."

From a regulatory perspective, Siu believes "core issues have been basically resolved" because regulation has provided sufficient "clarity." "Clarity brings security." He explained, "When stablecoins are clearly regulated by the HKMA and only compliant companies can obtain licenses, market participants—whether payment institutions or users—have confidence to incorporate them into existing systems." Using Animoca's joint venture with banks as an example, "users obtaining stablecoins from banks can enjoy mature balance sheets and custody services, plus multiple trust endorsements including bank security guarantees, especially from major note-issuing banks with built-in reputation advantages, significantly reducing users' trust costs."

From a technology perspective, stablecoins' greatest potential lies in "breaking bank account barriers." Siu pointed out that in Africa, Southeast Asia, and South America, large populations still lack traditional bank accounts, meaning they cannot use mainstream payment tools like WeChat Pay, Alipay, or PayPal, but stablecoins can change this situation. "Stablecoins allow them to participate directly in transactions without relying on banking systems; simultaneously, stablecoins can simplify cross-border transaction processes, opening entirely new markets previously untouchable."

Siu believes current on-chain ecosystems still have enormous growth potential: "Globally, about 500 million people hold virtual assets, but only 50-60 million truly use digital assets in blockchain distributed networks. This means billions more await connection to Web3 ecosystems, with stablecoins becoming important 'entry tickets.'"

**Stablecoins Are Open Ecosystem Infrastructure: "Value Initiative" Transfers from Institutions to Users**

In Siu's view, "payment convenience" is just one advantage of stablecoins; their core competitiveness lies in user value brought by "open ecosystems," which fundamentally differentiates them from traditional financial tools.

"Stablecoins are based on open networks built on blockchain, where developers can build various applications around them, and users can autonomously choose optimal solutions among different services." Siu illustrated that if funds are stored on traditional payment platforms, users' savings plans and interest rates are often platform-limited; but in stablecoin ecosystems, "you can choose any service provider offering the best rates, like selecting different bank products in traditional finance, but with higher freedom, unrestricted by single systems or countries."

He emphasized that this "openness" brings full competition, ultimately benefiting users. In "traditional finance, banks decide what products and rates users get; but in stablecoin ecosystems, users hold choice power, 'voting with their feet' to select service providers with higher returns and more services. It's not just improved convenience, but transfer of 'value initiative.'"

Additionally, Siu believes stablecoins can reach high-net-worth users. "The global digital asset market is worth approximately $4 trillion, with 300,000-400,000 digital asset millionaires—2-3 times Hong Kong's millionaire count." Siu stated that companies adopting stablecoins can more conveniently connect with these high-net-worth users, "like how mainland-Hong Kong interconnectivity allowed users to consume without currency exchange. Stablecoin emergence is an inevitable trend of technological progress, making 'cross-ecosystem transactions' simple—something traditional payment tools struggle to achieve."

**Rich Stablecoin Application Scenarios: "Digital Cash" Properties Show Advantages**

Siu believes stablecoins' "digital cash" properties will unleash potential across multiple fields, far exceeding current payment scope.

First is cross-border consumption. "Not all countries and regions accept WeChat Pay or Alipay, but stablecoins can be used almost anywhere globally with internet access—they're like digital cash, allowing direct consumption without currency exchange." Siu illustrated that users holding stablecoins can pay directly during European or American travel without exchanging local currencies, significantly reducing cross-border payment costs and barriers.

Second is AI agent scenarios. "Future individuals may have multiple AI agents, with AI automatically handling matters like investments while we rest, involving 'funding permissions' for AI." Siu noted, "Users won't easily let AI access their bank accounts or PayPal, but can provide specific amounts of stablecoins, enabling transactions while achieving 'fund isolation' through blockchain for security."

Regarding current virtual asset applications, Siu believes gaming digital currency is a "fast track" to reach the masses. "Gaming is currently the most active on-chain scenario. After traditional gaming transactions, player-purchased skins, weapons, and other assets remain platform-owned; but in Web3 games, players truly own these virtual assets through asset tokenization, even transferring and trading across different platforms." He revealed that Animoca is promoting stablecoin integration for in-game purchases, further lowering users' Web3 entry barriers.

**Expectations for Hong Kong's Future: Public-Private Collaboration Embracing Web3, Solving Tech Talent Distribution Issues**

As a member of Hong Kong's Web3 Advisory Panel, Siu has clear expectations for Hong Kong's Web3 development path: hoping to continue deepening "public-private collaboration" models, as Web3 can provide enormous potential for Hong Kong's traditional advantage industry—finance.

Siu noted that Hong Kong's government actively listens to public and enterprise opinions, with multiple parties jointly formulating industry directions. Hong Kong will continue exploring Web3 potential, hoping technology can empower Hong Kong's traditional advantage industry—finance. Globally, international financial centers and international Web3 centers show high convergence, such as New York, Singapore, and Dubai—digital asset centers that are simultaneously regional financial highlands. He particularly emphasized Hong Kong's "finance + technology" advantage. "Fintech" isn't simply about technological breakthrough—it requires professionals with deep understanding of financial logic like "tokenization" and "capital flows." Hong Kong is one of the world's most concentrated financial talent regions. Regarding Hong Kong's "small tech talent scale" issue, Siu believes "Hong Kong needn't pursue 'full-chain tech talent' but can focus on 'finance + Web3' subdivisions, leveraging financial talent advantages to attract global Web3 companies—this is Hong Kong's differentiated path."

**Animoca Brands Business Outlook: "User Education" and "User Trust"**

Siu stated that Animoca Brands currently has over 600 investments and is advancing the "Open Campus" education platform project, with the core project being "tokenizing student loans." "We're piloting in the Philippines and Indonesia, providing tokenized student loans for local students without bank accounts—we've already disbursed $10 million." Siu explained that each loan recipient simultaneously receives a Web3 wallet, "not only solving their financing needs but also helping them initially understand Web3 and digital assets, laying foundations for future ecosystem integration."

Beyond advancing stablecoin projects with Standard Chartered Bank, Animoca Brands will continue gaming sector deployment. "Gaming is Web3's fastest user-growth scenario. Through investment and self-developed games, we help players understand 'digital asset ownership' through entertainment—this is a key step in Web3 popularization." Siu stated that whether stablecoins, digital identity, or gaming, Animoca Brands' ultimate goal is "making Web3 benefit more people, making digital property rights everyone's basic right."

In digital identity, Animoca Brands is building a system called "Moca"—an anonymized credit scoring system. "In Web3, trust is the transaction prerequisite. Moca ID generates credit scores for users—merchants needn't know user names, only judge credibility through scores for safe transactions, significantly simplifying KYC (Know Your Customer) processes while protecting user privacy." Siu introduced, "Long-term, Moca will become an important component of Web3 credit systems, establishing digital world credit identities for those without traditional credit records."

Siu concluded, "Web3's core is 'user-led,' and stablecoins, digital property rights, digital identity, etc., are all important pathways toward this goal."