Author: Wang Hanyu
Editor: Zheng Huaizhou
Cover Source: Visual China
In June 2025, stablecoins transformed from a niche topic into a global phenomenon, capturing the attention of regulators, financial institutions, and investors alike.
Key Developments in June 2025:
- June 18: Pan Gongsheng, Governor of the People’s Bank of China (PBOC), publicly acknowledged stablecoins at the Lujiazui Forum, signaling regulatory openness.
- June 25: IMF Deputy Managing Director Bo Li announced at the Summer Davos Forum that the IMF is collaborating with multiple agencies to establish global standards for stablecoins.
- Market Surge: Guotai Junan International’s stock soared nearly 200% after securing approval to offer virtual asset trading services in Hong Kong.
Over 50 roadshows and conferences focused on stablecoins were held in June, reflecting growing institutional interest. Major corporations like JD.com and Ant Group are actively pursuing stablecoin licenses, with Ant International expanding operations in Hong Kong, Singapore, and Luxembourg.
Understanding Stablecoins
Stablecoins are cryptocurrencies pegged to stable assets like fiat currencies (e.g., USD). USDT and USDC dominate the market, accounting for over 90% of stablecoin transactions.
Regulatory Shift
In 2021, China banned cryptocurrency trading due to concerns about financial stability. However, PBOC’s recent endorsement highlights a strategic pivot toward exploring digital yuan-backed stablecoins for cross-border settlements.
Why the Change?
The U.S. GENIUS Act (passed May 2025) legitimized dollar-backed stablecoins, reinforcing the dollar’s global dominance. Countries like China are now accelerating efforts to diversify reserve systems and reduce dollar dependency.
Hong Kong’s Pioneering Role
Hong Kong’s Stablecoin Ordinance (effective August 1, 2025) establishes the world’s first licensing framework for fiat-pegged stablecoins. Key requirements:
- 100% reserve backing (cash/short-term bonds).
- Interest bans on stablecoin holdings.
- Anti-money laundering (AML) compliance.
👉 Explore Hong Kong’s regulatory sandbox for stablecoins
Use Cases for Stablecoins
Cross-Border Payments
- Cost Reduction: Eliminates intermediaries like Visa/Mastercard, cutting fees from 2–3% to near-zero.
- Instant Settlements: Transactions settle in seconds vs. 1–3 business days via traditional banking.
RWA Tokenization
- Ant Group and others are tokenizing real-world assets (e.g., solar farms), using stablecoins for seamless global trading.
Retail Accessibility
- Hong Kong’s Securities and Futures Commission (SFC) approved 40 virtual asset trading licenses, enabling retail investors to trade stablecoins alongside traditional assets.
Major Players in Stablecoins
| Company | Initiative |
|---|---|
| Ant Group | Applying for Hong Kong license |
| JD.com | Targeting Q4 2025 license |
| Standard Chartered | Partnering with Linklogis for RWA projects |
| Circle (USDC issuer) | Backed by China Everbright |
👉 Learn how corporations are adopting stablecoins
FAQs
Q: Are stablecoins safe?
A: Licensed stablecoins (like Hong Kong’s upcoming issuers) must meet strict reserve and AML rules, reducing counterparty risks.
Q: How do stablecoins aid dollar diversification?
A: Non-USD-pegged stablecoins (e.g., potential yuan-backed tokens) offer alternatives to traditional SWIFT-based transactions.
Q: What’s next for stablecoins?
A: Experts predict convergence toward a few dominant stablecoins, reshaping global finance infrastructure by 2030.
Conclusion
Stablecoins represent a seismic shift in payments and asset tokenization, with Hong Kong leading regulatory innovation. As central banks and corporations race to adopt this technology, the financial landscape is poised for disruption.
For more insights, follow our coverage of digital currency trends.
### Key SEO Enhancements:
1. **Keyword Integration:**
- Primary: "stablecoins," "Hong Kong Stablecoin Ordinance," "digital yuan"
- Secondary: "RWA tokenization," "cross-border payments," "USDT vs. USDC"
2. **Structure:**
- H2/H3 headings for readability.
- Tables for comparative data.
- Anchor texts placed contextually.
3. **FAQs:**
- Addresses user intent for safety, utility, and future trends.
4. **Commercial Links:**
- Only `https://www.okx.com/join/BLOCKSTAR` retained per guidelines.