William Gee, the Institute’s Virtual Assets Reporting Advisory Panel
Earlier this year, Hong Kong joined a growing number of jurisdictions that have enacted laws and regulations on stablecoins, a new form of digital medium of exchange that provides a stable alternative to volatile cryptocurrencies that can be used for payments, trading, and value storage.
The “Guideline on Supervision of Licensed Stablecoin Issuers” published by the Hong Kong Monetary Authority (HKMA) in August required licensed stablecoin issuers to commission regular independent attestation and audit of reserve assets, providing opportunities for accountants to participate in, and contribute to, the development of this emerging digital ecosystem.
Since the issuance of BitUSD, the world’s first stablecoin in 2014 (which lost its 1-to-1 parity with the US dollar in 2018 and was unable to recover), the global stablecoin economy has grown to over US$300 trillion, with the top two stablecoins making up more that 60 percent of total market share.
In the 2025 Annual Economic Report, published by the Bank for International Settlements, concerns were raised on the potential for stablecoins to undermine monetary sovereignty, and the risk of capital flight from emerging economies, among other issues such as lack of transparency.
“Study and analyse the financial and operational implications to businesses and consumers on the use of stablecoins as a medium of exchange, especially the long-term sustainability and viability of the stablecoin economy.”
Against this background, for accountants to lead in Hong Kong’s emerging stablecoin economy, it is important to gain proficiency in three areas:
First, while the Hong Kong Stablecoins Ordinance refers to “specified stablecoin”, being one that is pegged to one or more official currencies, there exist other forms of stablecoins and given the global nature of this new ecosystem, it is important to develop a comprehensive understanding of the nature and mechanics of stablecoins.
Second, understanding the potential impact of stablecoins on the traditional economy, such as the impact on the value of reserve assets in the event of new issuance and redemption of stablecoins.
Third, study and analyse the financial and operational implications to businesses and consumers on the use of stablecoins as a medium of exchange, especially the long-term sustainability and viability of the stablecoin economy.
Many stablecoins have seen substantial deviations from par value, even collapse, such as in the case of TerraUSD in May 2022. The global nature of stablecoins and the diverse regulatory approach between legal jurisdictions also present challenges to regulators and ecosystem participants. It is therefore important for accountants to learn from the past and provide advice on the practices that can best safeguard the interest of ecosystem participants in Hong Kong against a much larger global stablecoin economy that may not be regulated to the same extent.
Paul McSheaffrey, Senior Banking Partner, Hong Kong, KPMG China, and Virtual Assets Reporting Advisory Panel member
Stablecoins need trust – and accountants can deliver it. Following the launch of the new stablecoin framework in August, the HKMA has already received licence applications from 36 institutions as of September. This strong interest signals a real opportunity for accountants to step up and lead. At the core of our profession is one simple, enduring concept: trust. And in the context of stablecoins, trust is exactly what the market needs most.
A stablecoin, at its simplest, is a digital token that represents traditional money – often the Hong Kong dollar or US dollar – that can be used to make payments. The concept isn’t new. Finance has evolved over centuries from requiring physical currency to make payments, to using paper money and now commonly electronic payments. What’s new with stablecoins is the use of blockchain technology to make those transactions faster, more transparent, and borderless. But as with any new technology, there’s always an initial hesitation. People want to know: is this safe? Is it genuine? Will I really get my money back when I need it?
“We’ve long been trusted to uphold transparency, manage risk, and ensure compliance – and those same skills apply equally well in this new digital context.”
That’s where accountants come in. Our role is to give that assurance – to verify that the stablecoins have reserves behind them, that they’re properly managed, and that the systems behind them are sound. Through independent audits, attestations, and clear disclosures, we can give both users and regulators confidence that the stablecoin truly holds the value it promises. We can provide the trust that the public needs to use stablecoins more widely.
The potential impacts of stablecoins on Hong Kong’s economy and position as an international financial centre are significant. However, this potential can only be realized if users, businesses, and regulators have confidence in the system. That confidence depends on all stakeholders having trust in stablecoins – something which accountants are well placed to provide.
Looking ahead, there’s a further role for accountants to play. As Hong Kong builds out its regulatory regime for digital assets, accountants can bring experience in designing controls, reporting standards, and governance frameworks. We’ve long been trusted to uphold transparency, manage risk, and ensure compliance – and those same skills apply equally well in this new digital context. We can help ensure that Hong Kong’s stablecoin ecosystem grows on a foundation of credibility and integrity.
It’s a leadership role that suits the profession perfectly – and one that’s very much ours to take.
Ray Wong, Chairman, Asia Web3 Association, and Partner, Asymmetry Capital
The rapid evolution of digital finance is transforming the way we think about money, transactions, and financial systems. I believe that accountants play a vital role in shaping Hong Kong’s emerging stablecoin economy. With the rapid growth of digital assets and blockchain technology, Hong Kong is poised to become a hub for stablecoin innovation.
According to a report by Citi, the stablecoin market could reach US$1.9 trillion by 2030. This growth potential presents a significant opportunity for accountants to play a leading role in the stablecoin economy.
Stablecoins require robust financial integrity, compliance, and risk management frameworks. Accountants can provide expertise in:
- Regulatory compliance: ensuring that stablecoin issuers and users comply with anti-money laundering and know-your-customer regulations, mitigating the risk of non-compliance and reputational damage.
- Audit and assurance: auditing stablecoin issuers, ensuring the accuracy of financial statements, and verifying the stability of the pegged currency.
- Financial reporting: developing new financial reporting frameworks to accommodate digital assets, providing guidance on accounting treatments, financial statement presentation, and disclosure requirements.
- Risk management: helping organizations assess and manage risks associated with stablecoins, including market risk, credit risk, and operational risk.
“Accountants can future-proof their skills and stay ahead of the curve in the rapidly evolving stablecoin economy.”
The convergence of stablecoins and real world asset (RWA) tokenization presents an opportunity for accountants to lead. RWA tokenization involves representing traditional assets as digital tokens on a blockchain, backed by stablecoins. Accountants can ensure that these combinations are accurately accounted for and reported.
At the Asia Web3 Association, we are committed to promoting education and awareness about blockchain technology and digital assets. We publish regular newsletters and research reports to help accountants and other stakeholders stay informed about the latest developments in the stablecoin economy. Through education and training, accountants can future-proof their skills and stay ahead of the curve in the rapidly evolving stablecoin economy.
By providing expertise in financial integrity, compliance, risk management, and future-proofing with education, accountants can help ensure that Hong Kong remains a leader in financial innovation while maintaining the integrity and stability of the financial system.
