A New Chapter in the Digital Asset Market: The Development of the Stablecoin Ecosystem and the Transformation of the Global Financial Landscape

Introduction

In 2025, the digital asset sector will witness an important milestone as a well-known stablecoin issuance company successfully lists on the New York Stock Exchange, becoming one of the first publicly listed fintech companies focused on stablecoin business. This event not only marks the entry of the USD stablecoin ecosystem into the public capital market but also opens a new chapter in the digital asset field. Stablecoins, as a link between traditional fiat currency and the digital currency world, are becoming an important area of competition for capital markets and fintech companies due to their price stability, efficient and low-cost cross-border payments, and deep support for innovative scenarios such as DeFi.

Against the backdrop of the booming global digital economy, the stablecoin ecosystem is experiencing explosive growth. The influx of capital and the gradual improvement of policy regulation highlight the key position of stablecoins in the future global payment system, cross-border settlement, and asset management. This article will deeply analyze 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 is pegged to the value of traditional fiat currencies, have rapidly emerged in recent years, becoming an important part of the cryptocurrency market. Unlike the high volatility of mainstream digital currencies such as Bitcoin and Ethereum, stablecoins achieve price stability by being pegged 1:1 to fiat currencies like the US dollar, significantly reducing the risks associated with digital asset trading. With the help of blockchain technology, stablecoins not only improve the efficiency of cross-border transfers 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 mainly reflected in three aspects:

1. Price stability, avoiding volatility risks

The cryptocurrency market experiences significant price volatility, and stablecoins are pegged to fiat currency values, ensuring the stability of transaction and settlement amounts, which greatly reduces trading risks.

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

Stablecoins based on blockchain technology allow for global transactions to be completed in just a few 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 payments, greatly expanding the usage boundaries of digital assets.

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

The ecological layout of a well-known stablecoin issuance company

The company was established in 2013, focusing on digital payments and blockchain finance, and launched a USD stablecoin in collaboration with another well-known cryptocurrency exchange platform. This stablecoin is a centralized stablecoin pegged 1:1 to the US dollar, with all funds reserved in regulated banks in the United States and short-term government bonds, 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 USD, making it the second largest stablecoin globally. Its ecosystem is extensive, deployed across multiple public chains such as Ethereum, Solana, Arbitrum, Optimism, Avalanche, Base, and Polygon, supporting exchanges, DeFi protocols, high-speed payments, and cross-chain asset transfers.

The company achieves the free flow of its stablecoin across different chains without slippage through a cross-chain transfer protocol, practicing the global strategy of "Everywhere."

In terms of compliance, the company strictly adheres to the regulatory requirements of the U.S. Department of the Treasury, SEC, and FinCEN, becoming a "stablecoin regular army" recognized by regulatory authorities. Its transparent and publicly available audit reports and compliant reserve system make it an important cornerstone of the digital dollar ecosystem. Meanwhile, the company collaborates with several global payment giants to actively promote the adoption of its stablecoin in the global payment and settlement fields.

Overview of Major USD Stablecoin Projects

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

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 fierce competition among global financial capital.

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

In the past, there were almost no clear global unified regulatory standards for the issuance and circulation of stablecoins, leading to a "regulatory vacuum" in the market. This lack of regulation, on one hand, lowered the barriers to entry for issuance, 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 Hong Kong's "Stablecoin Ordinance" set to be officially implemented in August 2025, it brings institutional norms and guarantees to the market. This institutional shift not only injects confidence into the industry's development but also promotes the market's gradual move towards 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 and invests in low-risk short-term government bonds, pledges Ethereum (ETH), or utilizes various strategies such as short futures to achieve returns far exceeding bank deposit rates. Taking a certain stablecoin as an example, it has achieved an annualized yield (APY) of over 20% through ETH pledging and short futures strategies, making it extremely attractive in the market. Once 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 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 political figure's team is attempting to create a "digital dollar reconstruction plan" to challenge the existing digital hegemony of the dollar; at the same time, Hong Kong is actively building a HKD stablecoin ecosystem to compete for the high ground in Asian fintech. Many countries in Europe, the United States, and Asia are striving to maintain currency 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 expanding, gradually approaching the functions of fiat currency.

Stablecoins were initially used for internal transfers within the digital currency market, such as a well-known stablecoin that circulates widely in the crypto market. However, with the development of technology and application ecosystems, the functions of stablecoins continue to expand:

• Global transaction payments: Support 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 stablecoins to earn interest or use them as collateral for digital assets.

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

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

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

The Prelude to a New Global Currency Order

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

This wave of stablecoins is, in fact, a struggle among countries for "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 to promote the establishment of an Asian Web3 clearing center.

On May 21, 2025, the Hong Kong Legislative Council officially passed the "Stablecoin Ordinance Bill," completing the third reading process on the same day. The ordinance will come into effect on August 1, 2025, making it the first jurisdiction in the world 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 settlement center":

• The prototype of the global crypto payment system has taken shape, and stablecoins are gradually expanding from a "settlement tool" to a mainstream choice for cross-border remittances, payments, and asset hedging.

• The US, China, Europe, and Japan are each accelerating the digitalization 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 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 position to proactively define rules between digital currency and regulation. Hong Kong's long-term intention is very clear:

• The digital Hong Kong dollar is led by the HKMA, primarily through settlement within the CBDC system and pilot programs by financial institutions;

• The Hong Kong dollar stablecoin is market-driven and serves as a supplement or even a substitute 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 currency game, stablecoins have quietly become the technological carrier and symbol of influence for the next sovereign tool. The United States uses certain stablecoins as anchors to compete for the settlement rights in the digital age; Europe and Japan promote the independent strategy of local currency digitization through regulations like MiCA; while Hong Kong has carved out an independent path of "market-driven, 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 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 cards first.

Stablecoins are not just a revolution in the form of currency, but also 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 battle. However, at this moment, Hong Kong, standing at the poker table, is no longer a bystander.