Hidden Giant in the Stablecoin Regulation Era: The Real Value of Bestway

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The Hong Kong financial market is entering a transformative phase as the city’s landmark Stablecoin Regulation prepares to take effect on August 1, 2025. Investor attention has surged, particularly after Guotai Junan International (01788.HK) saw its stock price soar nearly 200% on June 25 following news of its virtual asset trading license approval—recording HK$16.4 billion in trading volume, the highest across all Hong Kong-listed stocks that day.

This explosive market reaction underscores a growing appetite for companies positioned at the forefront of Hong Kong’s evolving digital asset ecosystem. While early beneficiaries are already in the spotlight, a deeper dive reveals a more structurally advantaged player: Bestway Holdings (01168.HK)—a company quietly building a powerful presence in fintech and stablecoin infrastructure through strategic long-term investments.

From Property Developer to Fintech Innovator: Bestway’s Strategic Evolution

Bestway is often misclassified as a traditional real estate company, but its transformation began over a decade ago. In 2013, it became a founding shareholder of ZhongAn Online (06060.HK), acquiring a 5.51% stake—an early bet on insurance technology that laid the foundation for its digital shift.

Then in 2017, Bestway co-founded ZhongAn International, in which it holds a 43.5% stake. This entity fully owns ZhongAn Bank (ZA Bank), which received one of Hong Kong’s first virtual banking licenses in 2019. Today, ZA Bank is not just another digital bank—it's a regulated financial institution with deep integration into Web3 and stablecoin ecosystems.

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With Hong Kong’s Stablecoin Regulation mandating strict requirements—such as HK$25 million minimum capital, 100% reserve asset segregation, and real-time redemption mechanisms—ZA Bank’s existing compliance framework and technical capabilities place it in a unique position. It already provides fiat reserve custody services for regulated entities like Circle Technology and Standard Chartered, and is a pioneer participant in the Hong Kong Monetary Authority’s Ensemble Sandbox Program, designed to test stablecoin use cases under controlled conditions.

This means that when the new rules go live, ZA Bank won’t be starting from scratch—it will be among the few institutions with operational readiness and regulatory trust.

Unlocking Value: Bestway’s Role in the ZhongAn Fintech Ecosystem

As one of only eight licensed virtual banks in Hong Kong, ZA Bank reported total assets of HK$22.3 billion by the end of 2024—the highest among its peers. More importantly, it serves over 800,000 retail customers and 3,000 corporate clients, including more than 200 Web3 businesses, demonstrating strong adoption within the next-generation digital economy.

ZA Bank launched its “Banking for Web3” strategy back in 2023—two years before the stablecoin regulations were announced—showcasing foresight and positioning. It now offers a closed-loop system connecting virtual asset trading, fiat on-ramps, and cross-border payments, making it Asia’s first licensed digital bank to provide integrated financial services tailored for blockchain-based enterprises.

This isn’t speculative—it’s real infrastructure supporting real businesses. As policy clarity emerges, ZA Bank’s technological readiness and licensing advantages will translate into scalable revenue streams, from transaction fees to custody solutions.

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The Stablecoin Opportunity: Efficiency, Scale, and Market Potential

Stablecoins represent more than just digital cash—they’re poised to revolutionize global finance. Traditional wire transfers can cost $10–$50 per transaction and take days to settle. In contrast, stablecoin-based payments can reduce costs to under $1 and settle in minutes.

According to Citigroup, the global stablecoin market could reach $1.6 trillion to $3.7 trillion by 2030, driven by institutional adoption and regulatory clarity. Financial giants like Standard Chartered and JD.com are already testing use cases within the HKMA’s sandbox, signaling serious momentum.

Bestway, through its stakes in ZhongAn International and ZA Bank, is embedded in multiple layers of this emerging value chain:

These capabilities shift Bestway’s potential business model from relying on traditional land appreciation to capturing compliance premiums and transaction flow revenues—a far more scalable and sustainable path.

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A Dual-Layered Valuation: Why Bestway Is Undervalued

While some firms see short-term spikes from regulatory news, Bestway has built a durable ecosystem over more than a decade. Its current market valuation still largely reflects its legacy real estate holdings—but this fails to account for several key assets:

The disconnect between perception and reality creates a compelling opportunity. Bestway isn’t just benefiting from policy tailwinds—it helped build part of the infrastructure those policies are designed to regulate.

This information asymmetry offers forward-looking investors a rare chance: exposure to a company with both tangible asset value and high-growth fintech upside, trading at a fraction of its intrinsic worth.

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Frequently Asked Questions (FAQ)

Q: What is the significance of Hong Kong’s Stablecoin Regulation?
A: The regulation establishes clear rules for issuing HKD-pegged stablecoins, requiring minimum capital, full reserve backing, and redemption rights. It aims to foster innovation while ensuring financial stability—making Hong Kong a potential hub for compliant digital currency development.

Q: How does Bestway benefit from ZA Bank’s success?
A: Bestway owns 43.5% of ZhongAn International, which fully controls ZA Bank. As ZA Bank grows its user base and expands into Web3 and stablecoin services, Bestway benefits proportionally through equity value appreciation and potential dividend flows.

Q: Is Bestway still involved in real estate?
A: Yes, but its strategic focus has shifted. While it retains property assets that provide liquidity and collateral value, its growth engine is now centered on fintech investments and digital financial infrastructure.

Q: What is RWA tokenization, and why does it matter?
A: RWA (Real World Asset) tokenization involves representing physical or financial assets—like real estate or bonds—on a blockchain. This increases liquidity, lowers entry barriers, and enables programmable finance. ZA Bank’s exploration of RWA positions Bestway at the intersection of traditional finance and decentralized innovation.

Q: Can stablecoins really replace traditional payment systems?
A: Not entirely yet—but they’re filling critical gaps. For cross-border remittances, supply chain finance, and micropayments, stablecoins offer faster, cheaper alternatives. With proper regulation, they’re likely to become a core component of global payment rails.

Q: Why hasn’t the market fully priced in Bestway’s fintech value?
A: Market participants often categorize stocks based on legacy business models. Bestway is still labeled a “property company,” despite having built one of Hong Kong’s most advanced digital banking platforms. This misclassification leads to undervaluation until broader recognition occurs.

Conclusion: A Strategic Bet on Hong Kong’s Digital Financial Future

As Hong Kong solidifies its role as Asia’s leading fintech hub, companies like Bestway Holdings stand out—not for sudden regulatory wins, but for sustained vision. From early bets on insurtech to pioneering digital banking and now enabling stablecoin ecosystems, Bestway has consistently positioned itself ahead of policy curves.

With the Stablecoin Regulation set to activate in August 2025, the infrastructure built by ZA Bank—and backed by Bestway—will play a central role in shaping how digital money moves in Asia. For investors seeking exposure to compliant innovation rather than speculative volatility, Bestway represents a rare convergence of asset value, strategic foresight, and regulatory readiness.

Now may be the time to reassess what lies beneath the surface.