Hong Kong is advancing its stablecoin strategy, transitioning from pilot projects to a system-building phase. Financial Secretary Paul Chan emphasized a cautious approach, balancing innovation with risk management. Initial licenses will be limited and require real-world use cases, with a phased rollout strategy. Stablecoins are defined as payment tools, focusing regulatory efforts on payment settlement and anti-money laundering. HSBC and brokers like Futu Securities and OSL Group are integrating stablecoins into local payment systems, expanding their use from transactions to retail payments. The Hong Kong Monetary Authority allows issuers to choose currency types, initially launching an HKD-stablecoin but permitting other currencies in the future. This strategy aims to integrate stablecoins into traditional finance, enhancing Hong Kong's status as an international financial center.