A New Milestone in the Digital Asset Market: The Stablecoin Ecosystem Triggers Global Financial Transformation

In 2025, the digital asset market will reach an important turning point, as a financial technology company focused on stablecoin business successfully lists on the New York Stock Exchange. This not only marks the entry of the USD stablecoin ecosystem into the public capital market, but also reveals the immense potential of the digital asset field. Stablecoins, as a bridge between traditional fiat currency and the digital currency world, are becoming the focal point of fierce competition in the capital market and financial technology companies due to their price stability, efficient low-cost cross-border payments, and support for innovative financial applications.

Against the backdrop of the rapid development of the global digital economy, the stablecoin ecosystem is experiencing explosive growth. Whether it is the massive influx of capital or the gradual improvement of regulatory policies, it highlights the key position of stablecoins in the future global payment system, cross-border settlement, and asset management. This article will delve into the layout of the stablecoin ecosystem, the compliance logic behind it, capital arbitrage opportunities, and global regulatory trends, comprehensively showcasing how stablecoins are triggering a capital frenzy in the digital asset sector.

The Background and Value of the Rise of Stablecoins

Stablecoins, as a type of digital asset pegged to the value of traditional fiat currencies, have rapidly risen in recent years, becoming an important component of the cryptocurrency market. Unlike the high volatility of mainstream digital currencies like Bitcoin and Ethereum, stablecoins achieve price stability through a 1:1 peg with fiat currencies such as the US dollar, significantly reducing the risks associated with digital asset trading. Leveraging blockchain technology, stablecoins not only enhance the efficiency of cross-border transfers and payments but also provide robust infrastructure support for innovative financial applications, digital asset trading, and various scenarios such as global merchant payments.

The core advantages of stablecoins are mainly reflected in three aspects:

1. Price stability effectively avoids market volatility risks.

In the context of severe price fluctuations in the cryptocurrency market, stablecoins ensure the stability of transaction and settlement amounts by pegging to fiat currency values, significantly reducing trading risks.

2. Cross-border transfers are fast and cost-effective.

Stablecoins based on blockchain technology can achieve global transactions in just a few minutes, much faster than traditional bank cross-border remittances, and with significantly lower fees.

3. Support diversified financial applications

Stablecoins can be directly integrated into innovative financial applications, asset exchanges, and digital goods payments, greatly expanding the use cases of digital assets.

These advantages are difficult to achieve with traditional fiat currencies, greatly enhancing the convenience and efficiency of digital asset trading.

Stablecoin Ecosystem Layout

A well-known stablecoin project was established in 2013, focusing on the fields of digital payments and blockchain finance, and launched a USD stablecoin in collaboration with another cryptocurrency company. This stablecoin is a centralized stablecoin that is 1:1 pegged to the US dollar, with all funds reserved in regulated US banks and short-term government bonds, and audited monthly by a third-party accounting firm to ensure the transparency and security of the reserve assets.

As of June 2025, the market capitalization of the stablecoin is approximately $39 billion, ranking it second among global stablecoins. Its ecosystem has a wide coverage, deployed on multiple mainstream public chains, supporting various exchanges, innovative financial protocols, high-speed payments, and cross-chain asset transfers.

The project has achieved the seamless transfer of stablecoins across different blockchain networks through a cross-chain transmission protocol, implementing its globalization strategy.

In terms of compliance, the project strictly follows the regulatory requirements of the U.S. Department of the Treasury, the Securities and Exchange Commission, and the Financial Crimes Enforcement Network, becoming the "stablecoin regular army" in the eyes of the government. Its transparent and publicly available audit reports and compliance reserve system make it an important cornerstone of the digital dollar ecosystem. At the same time, the project collaborates with several global payment giants to actively promote the application of its stablecoins in the global payment and settlement field.

Overview of Major US Dollar Stablecoin Projects

| stablecoin | Issuer | Total Market Cap (as of June 2025) | Reserve Structure | Compliance Attributes | |-------|--------------|----------------|--------------|--------------| | USDT | Certain offshore company | Approximately 155.6 billion USD | US Treasury bonds, cash, repurchase, etc. | Partially transparent, previously penalized | | USDC | Some American Company | About $61.47 billion | Cash + short-term US Treasury, clear audit | Fully compliant, cooperating with regulators | | FDUSD | A Hong Kong trust company | Approximately $1.481 billion | Bank deposits + short-term securities | Regulated under Hong Kong trust framework | | PYUSD | A certain payment giant and a custody company | Approximately $947 million | Custodian responsible, primarily US Treasuries | Subject to New York financial regulation | | USDe | A Singapore company | Approximately 5.6 billion USD | Cashless, synthetic structure | No traditional collateral | | USD1 | A certain political team | Approximately $2.2 billion | Fiat storage system | Third-party agency supervision |

Stablecoin Underlying Logic

In recent years, the stablecoin market has shown explosive growth, driven by three core factors: regulatory vacuum, interest rate spread, and national competition. These factors work together to make stablecoins not only an important asset class in the digital currency market but also a new battleground for intense competition among global financial capital.

1. Regulatory vacuum --- from barbaric growth to gradual standardization

In the past, the issuance and circulation of stablecoins had almost no clearly defined global unified regulatory standards, resulting in a "regulatory vacuum" in the market. This lack of regulation lowered the entry threshold, attracting a large amount of capital and projects to enter quickly; on the other hand, it also brought potential systemic risks. As countries begin to introduce laws and regulations regarding stablecoins, such as the relevant regulations that Hong Kong is set to implement officially in August 2025, the market is gaining institutional norms and protections. This institutional shift not only injects confidence into the industry's development but will also promote the market's gradual move toward compliance and maturity.

2. Interest rate spread --- "profit gold mine" in the eyes of capital

The issuer of the stablecoin manages the fiat currency funds exchanged by users, investing in low-risk short-term government bonds, pledging digital assets, or employing short strategies in futures, among other methods, to achieve returns far exceeding bank deposit rates. For example, a project in Singapore has achieved an annualized return of over 20% through digital asset pledging and futures arbitrage strategies, making it extremely attractive in the market. Once high returns are obtained, funds quickly flow in, creating a capital accumulation effect that drives rapid expansion of the stablecoin's scale.

3. National Game --- Currency Hegemony and the New Battlefield of Digital Economy

Stablecoins are not only financial innovation tools but also the focal point of international currency competition and digital sovereignty. A stablecoin project supported by a certain political team is attempting to create a "digital dollar reconstruction plan" to challenge the existing digital hegemony of the dollar; meanwhile, Hong Kong is actively building a Hong Kong dollar stablecoin ecosystem to compete for a high ground in Asian fintech. Many countries in Europe, America, and Asia are striving to maintain monetary influence in the digital era through regulations and central bank digital currency pilots. Stablecoins have become a new battleground for countries around digital currency sovereignty and the global payment system.

4. The use cases are continuously enriching, gradually approaching the functions of fiat currency.

Stablecoins were initially used for internal transfers within the cryptocurrency market. However, as technology and application ecosystems have developed, the functions of stablecoins have continued to expand:

• Global Transaction Payments: Supports cross-border e-commerce and overseas remittances, providing a fast and low-cost settlement method.

• Innovative financial lending and earnings: Become a major lending asset on the new financial platform, where users can lend stablecoin to earn interest or use it for asset collateral.

• Asset hedging tool: During significant fluctuations in the crypto market, investors can quickly convert to stablecoin to lock in asset value.

• Digital goods payment: Stablecoins are widely used as a means of payment in fields such as gaming, digital art, and content creation.

As these diverse scenarios continue to mature, the use of stablecoins is gradually evolving from "cryptocurrency tools" to "digital fiat currencies", leading to an explosive growth in market size and capital attention.

A new global currency landscape is taking shape

From state-led initiatives and pilot programs by commercial banks to the involvement of tech giants and blockchain-native projects, stablecoins are transforming from niche tools into a key gateway for the next generation of global payment infrastructure.

The current wave of stablecoins is essentially a struggle among countries over "monetary hegemony in the digital age."

As the United States continuously expands the influence of the dollar through stablecoins, Hong Kong is also actively building a stablecoin ecosystem to promote the construction of a new emerging financial center in Asia.

On May 21, 2025, the Hong Kong Legislative Council officially passed the "Stablecoin Ordinance Bill" and completed the third reading process on the same day. The ordinance will officially come into effect on August 1, 2025, making it the first jurisdiction in the world to establish a comprehensive regulatory framework for fiat-pegged stablecoins.

The relevant regulations launched by Hong Kong are not a passive form of regulation, but rather a consideration of proactively seizing the strategic high ground of the "next-generation payment and clearing center."

• The global cryptocurrency payment system has taken shape, and stablecoins have gradually expanded from "cryptocurrency settlement tools" to become a mainstream choice for cross-border remittances, payments, and asset hedging;

• Major economies are accelerating the digitization of currency, and currency competition is shifting to the level of digital sovereignty. Hong Kong must establish a compliance moat to ensure the internationalization of the Hong Kong dollar;

• The integration of emerging technologies and finance is accelerating, and stablecoins are becoming the "bridge" and "medium" between on-chain applications and real-world assets, while Hong Kong aims to be the capital of bridges.

Therefore, Hong Kong is not merely "plugging loopholes," but is finding a new position to actively define rules between cryptocurrency and regulation. Hong Kong's long-term intention is very clear:

• The digital Hong Kong dollar is led by the Monetary Authority, primarily through settlement within the central bank digital currency system and pilot programs by financial institutions;

• The Hong Kong dollar stablecoin is market-led and serves as a supplement or even a replacement in applications on open chains, overseas payments, and cross-border settlements.

This dual-track approach will enable Hong Kong to hold two types of "issuance rights" in digital finance: one is official credit, and the other is commercial efficiency.

In this global game of the new currency landscape, stablecoins have quietly become the technical carrier and symbol of influence for the next sovereign tool. The United States anchors on mainstream stablecoins to compete for the clearing rights of the digital age; Europe and Japan promote an independent strategy for the digitalization of their currencies through relevant regulations; while Hong Kong has carved out an independent path of "market-driven, institutional support" with a flexible and forward-looking regulatory framework and a highly open market mechanism.

In the future, when stablecoins become the infrastructure for cross-border payments, and when blockchain redefines the clearing network and asset expression forms, those who can master the pricing power, access rights, and clearing rights of this system will gain an advantage in the new round of international financial order. And Hong Kong has already revealed its trump card.

Stablecoins are not just a revolution in the form of currency, but a deep game of digital sovereignty, financial order, and geopolitical discourse. In the future, more cities and more countries will join this unnamed digital financial war. However, at this moment, Hong Kong, standing at the card table, is no longer a bystander.