RD Technologies, a Hong Kong-based fintech leader revolutionizing global payments through blockchain technology, warmly welcomes the Legislative Council's passage of the Stablecoins Bill on May 21, 2025. This landmark legislation establishes a licensing regime for fiat-referenced stablecoin (FRS) issuers in Hong Kong, enhancing the regulatory framework for virtual asset activities while fostering financial stability and innovation.

The Stablecoins Ordinance requires entities issuing FRS in Hong Kong, or issuing FRS linked to the Hong Kong dollar, to obtain a license from the Hong Kong Monetary Authority (HKMA). Licensees must adhere to stringent requirements, including proper reserve asset management, robust stabilization mechanisms, and processing redemption requests at par value under reasonable conditions. The ordinance also mandates compliance with anti-money laundering, counter-terrorist financing, risk management, disclosure, and auditing standards, ensuring greater protection for the public and investors.

RD Technologies is proud to highlight that its subsidiary, RD InnoTech Limited, the issuer of HKDR, was among the first batch of companies admitted to the HKMA's stablecoin issuer sandbox in July last year. The admission underscores regulator's recognition of RD Technologies' commitment to regulatory compliance and innovation in the stablecoin sector.

"We are thrilled with the passage of the Stablecoins Ordinance, which sets a clear and robust framework for the sustainable growth of Hong Kong's virtual asset ecosystem as a global financial hub," said Rita Liu, CEO of RD Technologies. "As pioneers in the stablecoin space, with RD InnoTech Limited's participation in the HKMA's sandbox, we are dedicated to building trust by aligning with these regulations to deliver secure and innovative solutions for virtual asset trading, cross-border payments, and tokenization of real-world assets."

The ordinance, expected to take effect later this year, includes transitional arrangements to allow industry players sufficient time to comply with licensing requirements. RD Technologies remains committed to collaborating with regulators to meet these standards and drive responsible and exciting development in the virtual asset industry.