According to Hong Kong Monetary Authority CEO Eddie Yue, companies seeking to launch stablecoins should temper their expectations, particularly if their primary business is unrelated to digital assets. In a blog post on the central bank's website, Yue expressed concerns that some companies without a related business have announced plans to develop stablecoin operations, resulting in increased stock prices and trading volumes. Yue noted that 'the market has become overly excited' due to recent speculation surrounding stablecoins.
As the regulator prepares to start licensing stablecoin issuers from August 1, following the passage of a stablecoin bill in May, Yue warned that fewer than 10 out of 40 applicants are likely to be approved. The regulator had previously indicated that only a few licenses would be granted in the initial phase, which may lead to disappointment for many applicants.
The market capitalization of stablecoins has surged to over $269 billion, according to CoinGecko data, after the US signed the GENIUS stablecoin bill into law.