In June 2025, stablecoins surged from niche crypto assets to mainstream financial headlines—sparking over 50 analyst briefings, investor calls, and corporate strategy meetings in just one month. What caused this sudden momentum? And why are regulators, institutions, and tech giants all racing to get involved?
The answer lies at the intersection of technological innovation, geopolitical shifts in global finance, and a growing push to reduce reliance on the U.S. dollar. Let’s explore how stablecoins evolved from digital curiosities into potential pillars of tomorrow’s financial infrastructure.
The Regulatory Green Light
A major catalyst for the 2025 stablecoin boom was a series of high-level regulatory endorsements. On June 18, during the Lujiazui Forum, China’s central bank governor Pan Gongsheng publicly acknowledged stablecoins as a viable tool for cross-border payments. He emphasized the need for a diversified global currency system—where digital yuan and compliant stablecoins could play key roles.
This wasn’t just rhetoric. Just days later, on June 25, IMF Deputy Managing Director Li Bo announced that the International Monetary Fund is collaborating with global institutions to establish international standards for stablecoin regulation—aimed at guiding national policymakers.
👉 Discover how global financial institutions are preparing for the stablecoin revolution.
Simultaneously, Hong Kong moved decisively toward formal regulation. On May 30, the government published its draft Stablecoin Ordinance, with enforcement set for August 1, 2025. Under the new rules:
- All Hong Kong dollar-pegged stablecoins will be classified as “payment instruments.”
- Issuers must hold 100% high-quality reserves (cash or short-term government bonds).
- No interest may be paid on stablecoin holdings.
- Full compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks is mandatory.
Hong Kong has thus become the world’s first jurisdiction to implement a licensing regime specifically for fiat-backed stablecoins—a model now being watched closely by regulators worldwide.
Reducing Dollar Dominance
At the heart of the global interest in stablecoins is a strategic move: de-dollarization.
Today’s dominant stablecoins—USDT and USDC—are both pegged to the U.S. dollar and function as “on-chain dollars.” They dominate over 90% of the market, reinforcing dollar supremacy in digital finance.
But that dominance may soon face competition. The U.S. Senate passed the GENIUS Act in May 2025, formally legitimizing dollar-backed stablecoins by mandating full reserve backing and federal oversight for large issuers. While this strengthens the dollar’s digital footprint, it also accelerates other economies’ efforts to develop alternatives.
As Pan Gongsheng noted, the current cross-border payment system is inefficient, costly, and vulnerable to geopolitical risks. Traditional systems like SWIFT rely on layered intermediaries, leading to delays and high fees—often passed on to consumers.
Stablecoins offer a solution: instant, low-cost, borderless transactions powered by blockchain technology. By enabling direct peer-to-peer value transfer, they bypass correspondent banks and legacy networks entirely.
This shift isn’t just about efficiency—it’s about sovereignty. With central banks and multinational institutions seeking greater control over their financial rails, stablecoins present a path toward a more balanced, multipolar monetary order.
Real-World Use Cases: Beyond Speculation
Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins are designed for utility—not speculation. Their primary applications are reshaping two critical areas: cross-border payments and real-world asset (RWA) tokenization.
1. Cross-Border Payments Made Efficient
Traditional international transfers can take days and cost upwards of 5–10% in fees due to intermediary markups. In contrast, stablecoin transactions settle in seconds at a fraction of the cost.
For merchants, this means faster access to capital—no more waiting 1–3 business days for settlement. For consumers, lower operational costs could translate into cheaper goods and services.
Moreover, because stablecoins operate on open, public blockchains, they create a truly global payment network—one that challenges the closed ecosystems of Visa and Mastercard.
2. Tokenizing Real-World Assets (RWA)
RWA tokenization involves converting physical or financial assets—like real estate, commodities, or renewable energy projects—into digital tokens on a blockchain. These tokens can then be bought, sold, or used as collateral globally.
In 2024, AntChain (Ant Group’s tech arm) partnered with Langxin and GCL-Poly to complete China’s first RWA-based cross-border financing deals in green energy—totaling over RMB 200 million.
Stablecoins serve as the natural medium of exchange in these transactions. Instead of navigating complex SWIFT wires and currency conversions, investors can use compliant stablecoins to instantly settle trades—reducing friction and increasing liquidity.
👉 See how blockchain is transforming traditional asset markets.
Who’s Leading the Charge?
As Hong Kong prepares to issue its first wave of stablecoin licenses in July–August 2025, several major players have already entered the arena:
- Ant Group: Through Ant International and AntChain, it’s pursuing stablecoin operations in Hong Kong, Singapore, and Luxembourg.
- JD.com: Plans to launch its own stablecoin via JD Blockchain Tech, targeting Q4 2025 for license approval.
- LianLian Digital: Collaborating with Yuanbei Tech on a Hong Kong-based stablecoin project.
- CMB International: Became the first Chinese mainland-backed securities firm to obtain a full virtual asset license.
- ZhongAn Bank: Now serves as the first digital bank in Hong Kong offering custodial services to stablecoin issuers.
Global banks are equally active. Standard Chartered leads in Web3 adoption, with custody operations live in Dubai, Luxembourg, Singapore, and Hong Kong. HSBC, Deutsche Bank, ANZ, and others are rapidly expanding their digital asset offerings.
Even asset managers are joining. Huaxia Fund (Hong Kong) participated in three major regulatory sandboxes with the HKMA—including one focused on stablecoin cash management solutions.
Frequently Asked Questions (FAQ)
Q: What exactly is a stablecoin?
A: A stablecoin is a type of cryptocurrency pegged to a stable asset—usually a fiat currency like the U.S. dollar or Hong Kong dollar. It combines blockchain efficiency with price stability.
Q: Are stablecoins safe?
A: Safety depends on transparency and regulation. Regulated stablecoins like those under Hong Kong’s new ordinance require full reserve backing and strict compliance—making them significantly more secure than unregulated alternatives.
Q: Can individuals invest in stablecoins?
A: Yes. In regulated markets like Hong Kong, licensed platforms allow retail users to hold and transact in stablecoins through integrated investment accounts.
Q: How do stablecoins differ from central bank digital currencies (CBDCs)?
A: CBDCs are issued by central banks and represent digital cash. Stablecoins are typically issued by private firms but must comply with financial regulations. Both can coexist in future payment ecosystems.
Q: Will stablecoins replace traditional money?
A: Not entirely—but they will complement it. Stablecoins excel in digital-native environments like cross-border trade, DeFi, and tokenized assets where speed and automation matter.
Q: Is China allowing stablecoins?
A: While mainland China bans cryptocurrency trading, Hong Kong operates under a separate regulatory framework. Its new stablecoin laws signal strong support for innovation within strict compliance boundaries.
Final Thoughts: A New Financial Infrastructure Is Emerging
The rise of stablecoins in mid-2025 isn’t a bubble—it’s a structural shift. Driven by regulatory clarity, institutional adoption, and real-world utility, stablecoins are laying the foundation for a faster, fairer, and more inclusive global financial system.
From reducing transaction costs to enabling new forms of asset ownership, their impact will ripple across industries. And as Hong Kong becomes a proving ground for regulated innovation, the world watches closely—knowing that the next chapter of finance may be written not in ledgers, but on blockchains.
👉 Stay ahead of the curve—explore the future of digital finance today.