SS #19 - Hong Kong's New Stablecoin Rules Go Live

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Good Morning.

Welcome to our 19th edition of the StableScope. A new 2x a week, stablecoin-focused newsletter from Launchy. Given the growth of the vertical, there's an increasing demand for more recurring reporting and curation on stablecoins.

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In Today's Edition:

• Headline: Hong Kong's New Stablecoin Rules Go Live

• Quick Bites: Tether’s US Treasury Holdings Hit $127B

• Yield of the Week: 20.24% APY on Kamino

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HEADLINE

Hong Kong's New Stablecoin Rules Go Live

State of play: Hong Kong has officially implemented its new regulatory framework for stablecoin issuers, advancing its goal of becoming a leading crypto hub in Southeast Asia.

• The new stablecoin rules, which were passed in May, took effect on Friday.

• The Hong Kong Monetary Authority (HKMA) will accept license applications for the next three months.

• Despite reports of around 40 companies waiting to apply, the HKMA expects to approve fewer than 10, with CEO Eddie Yue noting the market is "overly excited."

What’s Next: The next three months will see a rush of stablecoin license applications, followed by a rigorous vetting process from the HKMA. The market will be watching closely to see which firms get approved.

Why it Matters: This news is a major step toward providing regulatory clarity for stablecoins in a global financial hub. By establishing a clear framework, Hong Kong is positioning itself as a trusted jurisdiction for digital assets, which could attract significant global investment and boost institutional trust in the crypto sector.

Our Take: The new rules present a clear opportunity for well-prepared, compliant firms to gain a significant foothold in a regulated market. However, because the HKMA is signaling it will approve fewer than 10 applicants, this strict approach might limit broader participation and innovation.

QUICK BITES

• Tether’s US Treasury holdings hit $127B.

• Ethena's USDe outpaces BlackRock’s bitcoin.

• Ethena’s USDe jumps to third-largest stablecoin.

• Bybit now supports USDT0 on HyperEVM, Corn and Berachain.

• CurveDAO member proposes slashing future Layer 2 deployments.

• George Osborn says Britain risks being ‘completely left behind’ on stablecoins.

• Mizuho says Coinbase's Q2 earnings point to shrinking USDC margins for Circle.

YIELD OF THE WEEK

Euler RLUSD / USDC on Euler Yield: 11.16% - 56.04% in RLUSD

• Euler enables leveraging RLUSD as collateral, borrowing USDC up to 14.27x to maximize yield.

• With a max LTV of 93%, the liquidity in this pool is up to $21.09M.

• Users can either borrow USDC against RLUSD collateral or utilize leverage to long RLUSD and short USDC.

Euler USDT / USDC on Euler Yield: 9.11% - 26.77% in USDT

• Euler enables leveraging USDT as collateral, borrowing USDC up to 14.27x to maximize yield.

• With a max LTV of 93%, the liquidity in this pool is up to $21.02M.

• Users can either borrow USDC against USDT collateral or utilize leverage to long USDT and short USDC.

Kamino SyrupUSDC/USDG Multiply: 20.24% APY

• Kamino Multiply is an automated, one-click product that uses overcollateralized debt positions opened via K-Lend. It allows users to leverage their exposure to yield-bearing assets, such as JLP, by continuously looping the lending and borrowing process.

• The product operates with a maximum LTV of 80% and has a current liquidity of over $1M. Users are subject to standard borrow rates, in addition to a minor 0.001% flashloan fee designed to prevent network spam.

• The JLP Multiply strategy enables users to borrow stablecoins to increase their exposure to a yielding asset whose returns are compounded from 75% of Jupiter perps fees. A key feature is that positions are not subject to liquidity locking, allowing users to deposit, manage, and withdraw their funds at any time.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.