New Era of Digital Assets: The Stablecoin Ecosystem Triggers a Global Financial Revolution

In 2025, the digital asset market reached an important milestone when a fintech company focused on stablecoin business successfully went public on the New York Stock Exchange. This marks the official entry of the USD stablecoin ecosystem into the public capital market, opening up a new blue ocean in the digital asset field. As a bridge between traditional fiat currency and the world of digital currency, stablecoins are becoming the focal point of competition among capital markets and fintech companies due to their price stability, efficient low-cost cross-border payments, and deep support for innovative scenarios like DeFi.

In the context of the flourishing global digital economy, the stablecoin ecosystem is experiencing explosive growth. The massive 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 delve into the ecological layout of stablecoins, the underlying compliance logic, 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 that anchors the value of traditional fiat currencies, have rapidly emerged in recent years, becoming an important component of the cryptocurrency market. Unlike the dramatic volatility of mainstream digital currencies such as Bitcoin and Ethereum, stablecoins achieve price stability through a 1:1 peg to fiat currencies like 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 strong infrastructural support for diverse scenarios including DeFi, digital asset exchanges, and global merchant payments.

The core advantages of stablecoins are reflected in three aspects:

1. Price stability, avoiding volatility risks

The cryptocurrency market is highly volatile, and stablecoins are pegged to fiat currency values, ensuring the stability of transaction and settlement amounts, significantly reducing trading risks.

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

Stablecoins are based on blockchain technology, enabling global transfers within minutes, far lower than the time and fees associated with traditional bank cross-border remittances.

3. Support for diverse 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.

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. The company partnered with another cryptocurrency exchange to launch a USD stablecoin. This stablecoin is a centralized stablecoin that is pegged 1:1 to the US dollar, with all funds reserved in regulated banks and short-term government bonds in the United States, 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, making it the second-largest stablecoin globally, second only to another major stablecoin. 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 enables its stablecoin to flow freely between different chains without slippage through a cross-chain transfer protocol, implementing 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 a "stablecoin regular army" in the eyes of the U.S. government. Its stablecoin's transparent and publicly available audit reports and compliant reserve system make it an important cornerstone of the digital dollar ecosystem. At the same time, the company collaborates with several global payment giants to actively promote the deployment of its stablecoin in the global payment and settlement field.

Overview of Major USD Stablecoin Projects

| stablecoin | Issuer | Total Market Cap (as of June 2025) | Reserve Structure | Compliance Attributes | |-------|-------|----------------------|---------|--------| | USDT | A company (registered in El Salvador) | Approximately $155.6 billion | U.S. Treasury bonds, cash, repurchases, etc. | Partially transparent, previously fined | | USDC | Some Company (USA) | Approximately $61.47 billion | Cash + short-term U.S. Treasury bonds, clear audit | Fully compliant, cooperating with regulatory agencies | | FDUSD | A certain trust company (Hong Kong) | Approximately $1.481 billion | Bank deposits + short-term securities | Regulated under Hong Kong trust framework | | PYUSD | A certain payment company + a certain fintech company | Approximately $947 million | Custody, primarily U.S. Treasuries | Regulated by NYDFS | | USDe | A certain laboratory (Singapore) | Approximately $5.6 billion | No cash, synthetic structure | No traditional collateral | | USD1 | A political team | Approximately $2.2 billion | 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 differential, 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 in global financial capital.

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

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 regulatory environment, on the one hand, lowered the barriers to entry, 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 "Stablecoin Ordinance" in Hong Kong, which is set to be officially implemented in August 2025, it brings institutional norms and protections to the market. This institutional shift not only injects confidence into industry development but will also promote the market to gradually 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 currency funds exchanged by users, investing in low-risk short-term government bonds, staking Ethereum (ETH), or using futures short strategies, among other methods, to achieve returns far exceeding bank deposit rates. Taking a certain company's stablecoin as an example, it achieved an annualized yield (APY) of over 20% through ETH staking and futures arbitrage strategies, making it extremely attractive in the market. Once ultra-high returns are obtained, funds quickly flow in, creating a capital aggregation effect that drives the rapid expansion of the stablecoin's scale.

3. National Game --- Currency Hegemony and the New Battlefield of the 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; at the same time, Hong Kong is actively building a Hong Kong dollar stablecoin ecosystem to compete for the high ground in Asian fintech. Many countries in Europe, America, and Asia are striving to maintain their monetary influence in the digital age through regulations and central bank digital currency (CBDC) pilots. Stablecoins have become a new battleground for countries around digital currency sovereignty and the global payment system.

4. The use cases continue to diversify, gradually approaching the functions of fiat currency.

Stablecoins were initially used for internal transfers within the cryptocurrency circle, such as a well-known stablecoin that circulates widely in the crypto market. However, with the development of technology and the application ecosystem, the functions of stablecoins continue 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 DeFi platforms, where users can lend stablecoin to earn interest or use it for asset collateral.

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

• Digital asset 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 "coin circle tools" to "digital fiat currency," leading to a surge in market size and capital attention.

The Reshaping of the Global Currency Landscape

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

Many people are unaware that this wave of stablecoins is, in fact, 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 Ordinance Bill," completing the third reading process on the same day. The ordinance will officially take 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 launch of the "Stablecoin Regulation" is not a passive regulatory measure, but rather a proactive strategy to seize the high ground of the "next generation payment clearing center."

• The global cryptocurrency payment system has taken shape, and stablecoins have gradually expanded from "settlement tools in the crypto world" to mainstream choices for cross-border remittances, payments, and asset hedging.

• The US, China, Europe, and Japan are accelerating the digitization of their currencies, and monetary 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 just "plugging loopholes", but is finding a new proactive positioning in defining rules between the crypto sector 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 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 is using certain stablecoins as anchors to vie for the settlement power in the digital age; Europe and Japan are promoting an independent strategy for the digitalization of their local currencies through regulations like MiCA; meanwhile, Hong Kong has carved out an independent path of "market-driven and institutionally safeguarded" 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 forms of asset expression, those who 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. And Hong Kong has already taken the lead in revealing its cards.

Stablecoins are not just a revolutionary form of currency; they are also a deep 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 card table, is no longer a bystander.