A major breakthrough in the Hong Kong insurance industry! Stablecoin for premium payments and instant claims, RWA creates a new era of on-chain insurance policies.

In 2025, the stablecoin market will witness a historic moment - the global total market capitalization will exceed 250 billion USD, with an on-chain annual transfer volume reaching 36.3 trillion USD. With Hong Kong officially implementing the "Stablecoin Regulation" on August 1, the insurance industry will also usher in a new chapter of digital transformation. The latest pilot programs indicate that in the future, policyholders will be able to pay premiums using stablecoins, receive claims, and even tokenize policy assets (RWA), achieving instant cross-border payments and low-cost settlements, fundamentally changing the rules of the insurance industry.

Regulatory Pioneering: Hong Kong Stablecoin Regulation Comes Into Effect

The Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, emphasized that digital assets are an inevitable trend in global financial development, and Hong Kong must plan ahead to ensure it occupies a place in the competition as an international financial center.

According to the new regulations, stablecoin issuers must hold sufficient reserves to ensure that users can redeem within one business day, and the value must be equivalent to the fiat currency. Regulatory authorities will have the right to conduct inspections at any time to ensure market safety and transparency.

The world's first: stablecoin enters the Hong Kong insurance industry

On August 15, Hong Kong held the "Digital Trading Platform Ecosystem Construction Kick-off Meeting for the Insurance Industry" and announced the world's first application of a stablecoin in the insurance industry.

The pilot program will be based on stablecoin technology to achieve the digitalization of the entire process of cross-border payment and claims settlement for insurance policies. In the future, customers can directly pay premiums using stablecoins, avoiding the high handling fees of 6%–14% associated with traditional cross-border payments and the waiting time of several days—stablecoin transfers cost less than 1 dollar and can be credited within 2 minutes, reducing handling fees by 80%–90%.

Claims and Asset Tokenization (RWA) Comprehensive Upgrade

In addition to premium payments, insurance companies can also use stablecoins to directly pay claims to customers, achieving fast settlement.

What is even more disruptive is that insurance assets will be transformed into on-chain tradable assets through RWA (Real World Asset tokenization) technology. This means that the cash value of the policy is no longer a "sleeping asset", and policyholders can flexibly withdraw funds without having to surrender the policy in advance and incur losses.

The introduction of RWA constructs a complete on-chain financial closed loop for the insurance industry from "policy issuance → asset tokenization → stablecoin circulation."

The Prospects of the Integration of Cross-Border Finance and Web3

The Hong Kong Monetary Authority has revealed that the first batch of stablecoin applications will be prioritized for cross-border trade and the Web3 sector. In the future, the digital Hong Kong dollar (e-HKD) or other compliant stablecoins are expected to become the mainstream method for purchasing insurance, paying premiums, and settling claims.

Experts believe that this will not only enhance the payment efficiency and transparency of cross-border insurance policies, but also promote Hong Kong to become the world's second-largest crypto-friendly city, attracting more international insurance and financial institutions to settle down.

Conclusion

The implementation of stablecoins in the insurance industry in Hong Kong marks a deep integration of traditional finance and blockchain technology. From premium payments, claims settlements to policy asset tokenization, this transformation will significantly reduce costs, shorten settlement times, and bring unprecedented liquidity and innovation space to the insurance industry.

As the regulatory framework gradually improves, using stablecoins to pay premiums and using digital Hong Kong dollars to purchase insurance will no longer be a concept, but rather a new normal in Hong Kong's finance.