Stablecoins Gain Momentum in Asia as Financial Adoption Grows
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Stablecoins are gaining significant traction across Asia as regulators and financial institutions embrace these blockchain-based assets, industry leaders said at Hong Kong’s Web3 Festival this week. While the United States moves toward legislation on stablecoins, Asian markets are developing their own frameworks with Hong Kong at the forefront of regulatory innovation. Market Expansion Beyond USD Dominance The global stablecoin market has reached $220 billion in value, surpassing pre-Terra collapse levels, JD.com Vice President and Chief Economist Shen Jianguang told attendees. Monthly transactions now exceed 700 billion USD, with volume already surpassing traditional payment networks like Visa and Mastercard. JD.com, one of China’s largest e-commerce companies, has been at the forefront of stablecoin innovation, having issued a Hong Kong dollar-based stablecoin in July 2024. The company is leveraging its extensive foreign trade corridors for exports and imports, implementing stablecoins in closed-loop systems as initial use cases. US dollar-backed tokens currently dominate approximately 99% of the market, according to Rita Liu, CEO of RD Technologies, one of the first companies selected for Hong Kong’s stablecoin issuer regulatory sandbox. Liu noted growing interest in non-USD alternatives across the region. “A CNH-backed stablecoin could be very interesting under Hong Kong’s regulation,” Liu said, referring to offshore yuan that trades outside mainland China. “It will become a meaningful tool as China’s exports to emerging markets are increasingly priced in RMB.” Hong Kong’s Regulatory Leadership Hong Kong is positioning itself as a stablecoin hub with its regulatory framework advancing rapidly. Legislative Council Member Duncan Chiu said the territory’s stablecoin bill is expected to pass in May, with issuance possible in the second half of this year. Standard Chartered’s Head of Digital Asset & FinTech Hong Kong, Dominic James Maffei, believes combining USD stablecoins with high-quality regulated local currency stablecoins will create powerful market dynamics. He pointed…
Filed under: News - @ April 9, 2025 9:23 am