Stablecoin Momentum Builds Amid Policy Tailwinds: Where Should Investors Look Next?

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The stablecoin sector is experiencing a powerful resurgence, driven by a wave of favorable regulatory developments across global financial hubs. In recent weeks, policy momentum has accelerated in regions like Hong Kong and the United States, fueling investor confidence and reigniting interest in related equities. Stocks tied to the stablecoin ecosystem have surged, with notable performers including Chutian Dragon, Kechuang Information, Gier Software, and Jingbei North all posting strong gains.

This upward trend reflects more than short-term speculation—it signals growing recognition of stablecoins as critical infrastructure in the evolving digital economy. As governments formalize regulatory frameworks and financial institutions expand their crypto offerings, the stage is set for broader adoption and deeper integration into mainstream finance.

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Regulatory Catalysts Fuel Market Optimism

A major driver behind the recent rally is Hong Kong’s release of the Hong Kong Digital Assets Development Policy Declaration 2.0. Announced by Financial Secretary Paul Chan, the updated policy outlines a clear vision for digital asset development, emphasizing real-world tokenization use cases and diversified applications. The declaration reinforces Hong Kong’s ambition to become a leading hub for regulated digital finance.

Further bolstering market sentiment, Guotai Junan International—the overseas arm of Guotai Haitong Group—received approval from the Securities and Futures Commission (SFC) to upgrade its securities trading license. This enhancement allows the firm to offer virtual asset trading services, including cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins such as Tether (USDT). Clients can now trade these assets directly on its platform, marking a significant step toward institutional-grade crypto accessibility in Asia.

Meanwhile, in the U.S., the Senate recently passed the so-called “Genius Act,” a landmark piece of legislation that represents the first major crypto-related bill approved by the chamber. The act aims to establish a clear regulatory framework for stablecoin issuance, focusing on consumer protection, monetary stability, and interoperability with traditional banking systems.

Additionally, Hong Kong’s Stablecoin Bill is set to take effect on August 1, 2025, introducing licensing requirements and operational standards for stablecoin issuers. Together, these developments signal a maturing regulatory landscape that balances innovation with oversight.

Market Reaction: Stablecoin-Linked Stocks Soar

Since late June, equities associated with blockchain infrastructure, fintech solutions, and digital payment systems have seen sharp increases. Chutian Dragon rebounded with a涨停 (trading limit up) after a previous pullback, marking its third gain within seven trading days. Companies like Xin’an Century, Meideng Technology, Langxin Group, and Changelong Technology also posted significant advances.

One standout performer has been Circle, the issuer of USD Coin (USDC), which went public on the New York Stock Exchange on June 5. Within just over ten days, its share price skyrocketed from an initial $31 to a peak of $298.99—a near tenfold increase—highlighting intense market appetite for pure-play exposure to the stablecoin economy.

The Strategic Role of Stablecoins in Modern Finance

According to Zhongtai Securities, stablecoins serve as a bridge between centralized and decentralized financial systems. Their price stability makes them ideal for use as value storage units, transaction mediums, and payment instruments—functions traditionally fulfilled by fiat currencies.

This dual compatibility—with both traditional finance (TradFi) and decentralized finance (DeFi)—positions stablecoins as foundational components in the future of global payments.

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Why Stablecoins Matter: Speed, Scale, and Real-World Utility

Stablecoins are not just speculative instruments—they are increasingly being used in practical financial applications.中信证券 (CITIC Securities) highlights their role as a conduit between digital assets and real-world economies. With inherent price stability and seamless integration into blockchain infrastructure, stablecoins enable efficient capital flows across borders and ecosystems.

Data underscores their growing impact: annual transaction volume for stablecoins reached $15.6 trillion in 2025. This figure exceeds Visa’s annual transaction value by 19% and Mastercard’s by double, illustrating their dominance in high-frequency digital settlements.

Moreover, real-world asset (RWA) tokenization is emerging as one of the most promising frontiers. RWAs—such as bonds, real estate, or commodities—represented digitally on blockchains—are backed by tangible assets, offering greater investor trust compared to volatile cryptocurrencies.

RWA and Stock Tokenization: The Next Growth Frontier

Shenwan Hongyuan Securities notes that RWA-based investments are gaining traction beyond conventional crypto trading. By anchoring digital tokens to physical or income-generating assets, projects reduce counterparty risk and enhance transparency.

Building on this trend, Guosheng Securities suggests that stock tokenization could be the next major application for stablecoins. Imagine owning fractional shares of public companies recorded immutably on a blockchain, settled instantly using USDC or another compliant stablecoin. This model promises faster settlement times, reduced intermediation costs, and 24/7 market access.

Given their scalability and regulatory feasibility, stock tokenization may become one of the most viable pathways for mass-market RWA adoption.

Key Sectors Poised for Growth

CICC (China International Capital Corporation) identifies several industries likely to benefit from the expanding stablecoin ecosystem:

Frequently Asked Questions

Q: What are stablecoins?
A: Stablecoins are digital currencies designed to maintain a stable value by being pegged to reserve assets like the U.S. dollar or gold. They combine the efficiency of cryptocurrencies with the price stability of traditional money.

Q: Why are stablecoins important for global payments?
A: They enable fast, low-cost cross-border transactions without relying on traditional banking intermediaries. Their 24/7 availability and near-instant settlement make them ideal for international remittances and trade.

Q: How do regulatory changes affect stablecoin stocks?
A: Clear regulations reduce uncertainty, attract institutional investment, and encourage financial firms to integrate stablecoin services—directly boosting demand for related technology and infrastructure providers.

Q: What is RWA tokenization?
A: It’s the process of converting real-world assets—like real estate or corporate bonds—into blockchain-based digital tokens. Stablecoins often facilitate transactions involving these tokens.

Q: Can telecom companies really influence stablecoin adoption?
A: Yes. Telecoms already manage large-scale digital payment systems in many markets. Their reach and customer trust position them well to distribute mobile-first stablecoin wallets and services.

Q: Is Circle’s stock surge sustainable?
A: While short-term volatility is expected, Circle’s foundational role in the USDC ecosystem—backed by growing regulatory clarity—suggests long-term potential if adoption continues rising.

👉 Learn how leading platforms are integrating stablecoins into next-gen financial services.

Conclusion

The convergence of supportive policies, technological readiness, and rising institutional interest paints a bullish picture for the stablecoin sector. From transforming cross-border payments to enabling RWA tokenization and stock digitization, stablecoins are evolving from niche tools into essential financial infrastructure.

As governments continue refining oversight mechanisms and more firms integrate blockchain-based solutions, investors should closely monitor banking IT providers, telecom innovators, exchanges, and financial gatekeepers—all poised to benefit from this transformative shift.


Core Keywords: stablecoin, RWA tokenization, digital asset policy, stock tokenization, Circle stock, Hong Kong SFC, US Genius Act, blockchain payments