Hong Kong Edition: Stablecoin race is on

July 23, 2025 0
Hong Kong Edition
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In this week's Hong Kong Edition, we survey the fizzing stablecoin scene, speak with the man behind Bar Leone and look into the stocks leaving Chinese tech in the dust. For the Review, we visit a new modern Korean restaurant from the chef formerly of Singapore's famed Odette.

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Crypto FOMO

Few things are as hot as stablecoins right now (save for meme stocks) and the party may just be getting started. The total market value of crypto assets surged past $4 trillion for the first time this month, propelled by the US enacting sweeping legislation to regulate the sector as Bitcoin goes from record to record. The tide may even be turning in China, which has long been skeptical of the asset class.

Amid all this, Hong Kong is looking to secure its place in the crypto galaxy. With legislation aimed at expanding the regulatory framework working its way through the political system, companies are already frantically positioning to take advantage of the moment.

There's been furious activity across the city, with as many as 50 companies looking to apply for licenses to issue stablecoins starting next month, more than five times the amount authorities plan to hand out. The spike of interest was apparent at a digital finance forum this month, where a stablecoin roundtable drew a full house, with Hong Kong's new law on the asset class going into effect on Aug. 1. 

Turn up for crypto. Source: Deloitte

The biggest state-owned Chinese brokerages — smarting from their equity capital market misses —  are leading the charge, including Guotai Junan, which saw its shares jump 300% in a week on the news that its banking license was last month extended to include digital assets. ChinaAMC, one of the biggest asset managers, launched a tokenized yuan money market fund that allows subscription by stablecoins — months before the first stablecoin was even issued. Right now the money-market fund, in its Hong Kong dollar, US dollar and yuan versions, takes subscriptions in traditional currencies. 

Hong Kong, with its deep financial industry, history of innovation and traditional role as a gateway between China and global markets, sees itself in prime position to quickly build out a crypto ecosystem to the stablecoin universe.

"Hong Kong is an international financial center as well as a payment and settlement center," said Rita Liu, the CEO of RD Group, a stablecoin payment platform. "Stablecoins will enhance its dominance and status" in the latter.

That's certainly the calculation at ChinaAMC, which is counting on its new product being immediately available to generate yields as soon as the rules change, Gan Tian, the fund manager's Hong Kong CEO, said at a news conference last week. Citic Securities sees potential for "exponential growth" once stablecoins come to the market, said Matthew Chan, head of product and investment solutions. The brokerage is among those launching new stablecoin-accessible money-market funds alongside Guotai Junan, Standard Chartered, Futu and others.

Ready for takeoff. Photographer: Leung Man Hei/Bloomberg

Hong Kong in 2022 surprised the market with a pledge to establish a crypto hub, just after China outright banned onshore trading for the asset class.

Now the city is offering licenses for exchanges, dealers, custodians and stablecoin issuers. Retail investors have access to exchange-traded funds backed by Bitcoin and Ether, the largest tokens globally, even with a small initial investment. 

Still, industry pros see little sign that Beijing will reverse its ban, despite a crescendo of internal voices calling for the embrace of stablecoins.

Hong Kong will remain a testing ground for greater China for tech firms or state-owned enterprises, Lily King, chief operating officer of crypto custodian Cobo, said at the conference this month.

But even if momentum is picking up and progress has been quick by Hong Kong standards, for the crypto community, it is still a glacial pace. 

Moving at ding ding pace. Photographer: Balazs Penz/Bloomberg

For now, the HKMA is running a regulatory sandbox for stablecoin issuers to test use cases in a limited fashion. So far, it has onboarded only three participants, including a unit of RD Group.  The securities regulator is doing consultations on virtual asset dealing and custodianship, which normally take months to reach conclusions.

And  just what form of stablecoins will hit the market remains a question. A potential yuan peg has generated excitement and regulators often favor tokens tied to local currencies, RD Group's Liu said. But coins tracking the US dollar dominate with a 99% share of the $263 billion global market, according to DefiLlama data.

It's unclear which locally issued stablecoin can stand out and how scalable each one will be, according to Kennix Chan, a vice president at Victory Securities, which is in touch with five stablecoin issuer hopefuls to offer distribution services.

What does seem clear, though, is that Hong Kong's ability to capitalize on the momentum will be decided very soon. —Kiuyan Wong

Chart of the Week: Good Medicine

Forget the DeepSeek moment in Chinese tech stocks. The spotlight is now shifting to drugmakers, which have come a long way from their copycat days and are challenging the Western dominance in innovation. The Hang Seng Biotech Index has soared more than 100% in the past 12 months — outpacing the tech sector with more than double the gains of the benchmark Hang Seng Index. The surge has been driven by investor enthusiasm over a wave of licensing deals and the government's push to overhaul drug regulations. The biggest winner is 3SBio, which saw its stock quadruple as the Shenyang-based company secured a record $1.25 billion deal in May to license its experimental cancer drug to Pfizer. —Sangmi Cha 

Five Minutes With: The Bar Maestro

He is the mastermind behind Hong Kong's Bar Leone, just named Asia's best bar for a second straight year. After starting his career in Seoul and London, Rome-born Lorenzo Antinori was previously with another award-winning bar in the city, Argo at the Four Seasons.

As the hype around Bar Leone ratchets even higher, we spoke with Antinori about the key to his flagship project's success, Hong Kong's drinking scene and his most recent project, Montana. The Cuban-inspired venue opened this month a block away from Leone, adding to the buzzy Soho gastro scene. It's a bold bet, made as part of a team with another Italian award winner, Simone Caporale. The entrepreneur helped co-found Sips Bar in Barcelona in 2021, earning it the No. 1 spot on the World's 50 Best Bars list in 2023 and No. 3 last year, behind Mexico City's Handshake Speakeasy and Bar Leone. —Filipe Pacheco

Antinori, center, straight to the top. Photographer: Filipe Pacheco/Bloomberg

What sets Bar Leone apart from others in Asia?

Our concept is so simple. I think maybe simplicity is what has been missed in our times. Our motto is "cocktail for the people." In times when the bar experience is so complex and intricate, we really tried to shift and go back to simplicity. That's something that people craved. If you come to Bar Leone, you have a negroni, you have a spritz, you have an Americano, you have a whiskey sour. What makes the difference is the experience, the vibe, the service. In the end, simplicity wins.

What's the story behind your new bar, Montana?

I met Simone 13 years ago in London. I always admired him because I think he's the best professional in our industry. We always kept in touch. We met in Madrid for the World's 50 Best Bars in October and that's when we first had the idea: "Why don't we do something together?" We both love the Cuban cocktail heritage, because it's one of the oldest, most charming cocktail cultures in the world. We wanted to do something that is fun, that has a vibe.

You can go beyond Cuba Libre here. Source: Montana

Many bars and restaurants are shutting down in Hong Kong, and you're opening a new one. Are you creating competition for yourself?

No. It's a tough time for the food and beverage industry in Hong Kong, but also globally. We're living in times where everything seems a little bit unstable. I think there is no secret to creating a good experience for consumers, because these days they really choose the experience they want to live. It's our responsibility to deliver. Montana was born out of a passion for hospitality and it's a love project. Simone and myself, along with the team, share the same love for hospitality.

Movers and shakers. Source: Montana

What is your favorite drink and why?

Oh, it really depends on who I'm with and where I am. It can be a daiquiri, it can be a mojito, it can be a martini. I like to pick my drink based on the occasion. Right now, a glass of champagne!

The Review: Odette Chef Rethinks Korean Cuisine

Tucked away on the fifth floor of a building on Lyndhurst Terrace, newly opened Sol offers a refreshing take on Korean cuisine, one that's deeply rooted in tradition but elegantly dressed in French technique.

That's due in large part to the creative energy of head chef Gwanju Kim, formerly of Singapore's three-Michelin-starred Odette and Seoul's one-starred L'Amant Secret. Although chef Kim's journey began in French kitchens, his heart was always drawn to the richness of Korean produce. "We used a lot of Japanese ingredients and techniques at Odette," he says. "And I used to envy that because Korea has so many incredible ingredients too." 

East meets West in this Jeju abalone dish. Photographer: Stella Ko/Bloomberg

After returning to Seoul, he began rethinking Korean cuisine, eventually landing in Hong Kong to bring his vision to life. His goal is to spotlight the ingredients Koreans often take for granted — like maesaengi (hairy seaweed) and siraegi (dried radish greens) — and introduce them to a global audience. At the start of our meal, chef Kim presented a basket of the vegetables that would feature in our dishes, explaining their sourcing and traditional Korean culinary roles. Each course included a thorough overview from our server and a lovely table card offering an insightful backstory to the core ingredient at play.

For this review, we, a Korean native and a recent Hong Kong transplant, visited Sol about a week after it opened. We ordered the five-course lunch set (HK$388 per person) and a recommended add-on to start. Our total bill for two came to HK$1,263 ($160), including sparkling water and service.

The vibe: Sol's interior is warm and inviting, with earthy brown tiles, soft circular lighting and a solstice motif adorning the walls. Two-person booths provide the perfect setting for a conversation while a few larger tables can accommodate groups. A separate space near the open kitchen hosts monthly cooking classes and group bookings, adding a community feel to the refined dining experience. 

The restaurant can accommodate pairs and larger groups. Photographer: Stella Ko/Bloomberg

Can you conduct a meeting here? Absolutely. But a meal this good might be better shared with your loved ones.

Who's next to you: When we visited for a late weekday lunch, it was still quiet. But the few tables around us seemed to have couples and friends.

What we'd order again: 

Stella: My favorites were the creamy steamed egg topped with mushrooms and pine nuts, and a dish recommended by our server: a Jeju abalone (a HK$148 add-on) paired with two types of Korean seaweed with a classic beurre blanc sauce. A nostalgic moment came with the mubap, a seasoned radish rice dish, served alongside grilled pork jowl, a humble one-pot dinner that instantly sent me back to my childhood in Seoul. It's a clever nod to the chef's belief that the most common ingredients often hold the deepest meaning. I'd like to return for dinner, especially with dessert chef Kylie Yang, formerly of Mingles and Hansik Goo, bringing her own modern Korean flair to the final course, which includes two grain-inspired desserts: one made with white rice and the other with barley.

The tender pork jowl that's part of the main course. Photographer: Stella Ko/Bloomberg

Ray: At Sol, none of the usual Korean fare I'm accustomed to — your bibimbap, Korean barbecue or ginseng chicken soup — are on the menu. So this experience helped widen my palate and appreciation for other Korean staples. Standouts in my mind were the delicately layered saewoo-jang (soy-marinated prawn), the aforementioned main course of mubap with pork jowl and the just-sweet-enough dessert featuring tastes of barley, chocolate and tonka beans. I'd absolutely return for dinner, or better yet, a cooking class.

Need to know: Sol is on the fifth floor of 8 Lyndhurst Terrace. There are no signs outside, so check the floor directory inside the building entrance. The restaurant serves lunch from noon to 3 p.m. and dinner from 6 p.m. to 10 p.m. Only set menus are available for both lunch and dinner. Reservations are recommended, which can be made via Google Maps or directly on the restaurant's website. —Stella Ko and Raymond Schillinger

See our other restaurant reviews: Joongang Haejang, famous for its Korean hangover soup, as well as Lala, Jee and Tsui Wah, which are in Sol's neighborhood.

Let us know if you have any restaurants you'd like us to review. Drop us a line at [email protected].

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