A New Milestone in the Digital Asset Market: The Stablecoin Ecosystem Welcomes a Capital Frenzy

In 2025, the digital asset market will reach an important turning point, as a financial technology company focusing on stablecoin business successfully goes public on the New York Stock Exchange. This move not only signifies the entry of the USD stablecoin ecosystem into the public capital market but also opens a new blue ocean in the field of digital assets. As a bridge between traditional fiat currency and the world of digital currencies, stablecoins, with their price stability, efficient and low-cost cross-border payments, and deep support for innovative scenarios like DeFi, are becoming the core battleground for capital markets and financial technology companies.

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

The Background and Value of the Rise of Stablecoins

Stablecoins, as a type of digital asset that anchors the value of traditional fiat currencies, have rapidly emerged in recent years, becoming an important component of the cryptocurrency market. Unlike mainstream digital currencies such as Bitcoin and Ethereum, which are highly volatile, stablecoins achieve price stability through a 1:1 peg to fiat currencies like the US dollar, significantly reducing the risks of digital asset trading. Leveraging blockchain technology, stablecoins not only accelerate the efficiency of cross-border remittances and payments but also provide strong infrastructure support for diverse scenarios such as DeFi, digital asset exchanges, and global merchant payments.

The core advantages of stablecoins are reflected in three aspects:

1. Stable prices to avoid volatility risks

The cryptocurrency market experiences significant price fluctuations, and stablecoins anchor to fiat currency value, ensuring the stability of transaction and settlement amounts, greatly reducing trading risks.

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

Stablecoins based on blockchain technology enable global transactions to be completed in a matter of minutes, far lower than the time and fees associated with traditional bank cross-border remittances.

3. Support diversified financial applications

Stablecoins are directly integrated into innovative scenarios such as DeFi lending, asset exchange, and digital goods payment, greatly expanding the usage boundaries of digital assets.

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

Stablecoin Ecosystem Layout

A well-known digital payment and blockchain finance company was established in 2013, focusing on the fields of digital payment and blockchain finance. It collaborated with another cryptocurrency platform to launch a US dollar stablecoin. This stablecoin is a centralized stablecoin pegged 1:1 to the US dollar, with all funds reserved in regulated banks and short-term government bonds in the United States. It is 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 this stablecoin is approximately $39 billion, ranking it second among global stablecoins. Its ecosystem is extensive, deployed across multiple public chains including Ethereum, Solana, Arbitrum, Optimism, Avalanche, Base, and Polygon, supporting exchanges, DeFi protocols, high-speed payments, and cross-chain asset transfers.

The company implements its stablecoin to flow freely across different chains without slippage through cross-chain transmission protocols, practicing a globalization strategy.

In terms of compliance, the company strictly adheres to the regulatory requirements of the U.S. Department of the Treasury, SEC, and FinCEN, becoming the "stablecoin regular army" in the eyes of the Biden administration. Its transparent and public audit reports and compliant reserve system for stablecoins make it an important cornerstone of the digital dollar ecosystem. At the same time, the company collaborates with several global payment giants, actively promoting the implementation of its stablecoin in the global payment and settlement sector.

Overview of Major US Dollar Stablecoin Projects

| stablecoin | Issuer | Total Market Cap (as of June 2025) | Reserve Structure | Compliance Attributes | |-------|-----------------|----------------|--------------|--------------| | USDT | A company (registered in El Salvador) | About 155.6 billion USD | US Treasuries, cash, repos, etc. | Partially transparent, has been fined | | USDC | Some Company (USA) | Approximately $61.47 billion | Cash + short-term US Treasury bonds, clear audit | Fully compliant, SEC partner | | FDUSD | A certain company (Hong Kong) | Approximately 1.481 billion USD | Bank deposits + short-term securities | Regulated under Hong Kong trust framework | | PYUSD | A payment platform + A blockchain company | Approximately $947 million | Custody, primarily US Treasuries | Regulated by NYDFS | | USDe | A certain laboratory (Singapore) | Approximately 5.6 billion USD | Cashless, synthetic structure | No traditional collateral | | USD1 | A certain political team | Approximately 2.2 billion USD | Fiat storage system | Third-party regulation |

Stablecoin Underlying Logic

In recent years, the stablecoin market has experienced explosive growth, driven by three core factors: regulatory vacuum, interest rate differentials, 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 fierce competition among global financial capital.

1. Regulatory Vacuum --- From Barbaric Growth to Gradual Regulation

In the past, there were almost no clear global uniform regulatory standards for the issuance and circulation of stablecoins, leading to a "regulatory vacuum" in the market. This lack of regulatory oversight lowered the entry barriers, 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, regulations like Hong Kong's "Stablecoin Regulation" set to be officially implemented in August 2025, bring institutional norms and protections to the market. This institutional shift not only instills confidence in industry development but also pushes the market towards gradual compliance and maturity.

2. Interest Rate Spread --- "Profit Gold Mine" in the Eyes of Capital

The issuer of the stablecoin manages the fiat funds exchanged by users, investing in low-risk short-term government bonds, staking Ethereum (ETH), or employing various strategies such as futures shorting to achieve returns significantly higher than bank deposit rates. Taking a certain stablecoin as an example, it achieved an annualized yield (APY) of over 20% through ETH staking and futures arbitrage strategies, making it highly attractive in the market. Once ultra-high returns are obtained, funds quickly flow in, creating a capital accumulation effect that drives the 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 certain stablecoin supported by the Trump team is attempting to create a "digital dollar reconstruction plan," challenging the existing digital hegemony of the dollar; meanwhile, Hong Kong is actively building a stablecoin ecosystem for the Hong Kong dollar, vying for the high ground in Asian fintech. Many countries in Europe, America, and Asia are striving to maintain monetary influence in the digital age through regulations and central bank digital currency (CBDC) pilots. Stablecoins have become a new battleground for countries regarding digital currency sovereignty and the global payment system.

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

Stablecoins were initially used for internal transfers within the coin circle, such as a certain stablecoin being widely circulated in the crypto market. However, with the development of technology and the application ecosystem, the functions of stablecoins have continued to expand:

• Global transaction payments: Support for cross-border e-commerce and overseas remittances, providing fast and low-cost settlement methods.

• DeFi Lending and Yield: Become a major lending asset on the DeFi platform, where users can lend stablecoin to earn interest or use it for asset collateral.

• Asset hedging tool: During periods of significant volatility 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 areas such as gaming, NFTs, and content creation.

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

A new global currency pattern is taking shape

From state-led initiatives and pilot projects by commercial banks, to the participation of tech giants and on-chain native projects, stablecoins are transforming from a niche tool in the coin circle to a key gateway for the next generation of global payment infrastructure.

Many people are unaware that this wave of stablecoins is actually a struggle among countries over "monetary hegemony in the digital age."

As the United States continues to expand the influence of the dollar through stablecoins, Hong Kong is also actively building a stablecoin ecosystem and promoting the construction of an Asian Web3 clearing center.

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

Hong Kong's introduction of the "Stablecoin Regulation" is not a passive regulatory measure, but rather a proactive consideration to seize the strategic high ground of the "next generation payment and clearing center":

• The prototype of a global cryptocurrency payment system has emerged, and stablecoins have gradually expanded from "settlement tools in the coin circle" to a mainstream choice for cross-border remittances, payments, and asset hedging;

• The US, China, Europe, and Japan are accelerating the digitization of their currencies, 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 Web3 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 positioning to proactively define rules between the coin circle and regulation. Hong Kong's long-term intentions are very clear:

• The digital HKD is led by the Monetary Authority, mainly through CBDC system settlement and pilot projects by financial institutions;

• The Hong Kong dollar stablecoin is market-driven and serves as a supplement or even a replacement in open chain applications, offshore payments, and cross-border settlements.

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

In this global monetary game of the new era, stablecoins have quietly become the technological vehicle and symbol of influence for the next sovereign tool. The United States is using certain stablecoins as anchors to compete for clearing rights in the digital age; Europe and Japan are promoting independent strategies for the digitalization of their currencies through regulations such as MiCA; meanwhile, Hong Kong has carved out an independent path of "market-driven and institutional safeguarding" 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 clearing networks and asset representation, whoever can grasp the pricing power, access rights, and clearing rights of this system will gain an advantage in the new round of international financial order. Hong Kong has already taken the lead in revealing its cards.

Stablecoins are not just a revolutionary form of currency; they represent a deeper game of digital sovereignty, financial order, and geopolitical discourse. In the future, more cities and countries will join this unnamed digital financial war. However, at this moment, Hong Kong, which is at the poker table, is no longer a bystander.