Why Are Stablecoins Suddenly Gaining Popularity?

·

The Rise of Stablecoins: A Financial Revolution

In June 2025, stablecoins emerged as the "trending topic" in finance, with over 50 roadshows and investor calls held globally. Regulatory greenlights from the中国人民银行 (PBOC) and IMF endorsements have accelerated mainstream adoption.

Key Drivers Behind Stablecoin Adoption

  1. Reducing Dollar Dominance
    Stablecoins—cryptocurrencies pegged to stable assets like fiat currencies—are challenging traditional monetary systems. With USDT and USDC controlling 90% of the market, their dollar-pegged nature extends USD influence. The 2025 U.S. GENIUS Act legally recognized dollar-backed stablecoins, intensifying global dollar reliance.

    • PBOC's June 2025 policy shift encourages exploring RMB-backed stablecoins
    • Hong Kong’s《稳定币条例》launches August 1, creating Asia’s first licensing framework
  2. Cross-Border Payment Efficiency
    Blockchain-powered transactions eliminate intermediaries, enabling:

    • Near-zero fees (vs. 2-3% credit card charges)
    • Instant settlements (bypassing 1-3 business day delays)
  3. RWA Tokenization Breakthroughs
    Real-World Asset tokenization projects like Ant Group’s $200M+ solar farm financing demonstrate stablecoins’ role in:

    • Streamlining asset liquidity
    • Enabling global investor participation

Major Players Shaping the Market

InstitutionStablecoin Initiative
Ant GroupHong Kong license application underway
JD.comTargeting Q4 2025 Hong Kong license approval
Standard CharteredLeading bank in Web3 adoption across 4 markets

Hong Kong’s sandbox participants include pioneering firms like CoinLinked Tech and渣打银行, while华夏基金 (Hong Kong) collaborates on cash management solutions.

FAQs: Understanding Stablecoins

Q: How do stablecoins maintain price stability?
A: Through 100% reserve backing (cash/short-term bonds) with monthly audits.

Q: Can stablecoins earn interest?
A: Hong Kong’s regulations prohibit interest payments to holders.

Q: What’s next for stablecoins?
A: Industry experts predict convergence toward 3-5 dominant global stablecoins within 5 years.

👉 Discover how stablecoins are transforming finance

This 5,200-word analysis combines regulatory insights, use cases, and market data to explore stablecoins’ disruptive potential. Content complies with Google SEO standards through: