In early June 2025, financial markets across mainland China and Hong Kong were shaken by a sudden surge in stablecoin-related stocks. On June 3, A-share stablecoin概念股 skyrocketed, with shares of G&D, Hengbao Co., Ltd., and Cuiwei Corporation hitting daily trading limits. Just a day earlier, Hong Kong-listed equities tied to the sector had already surged—LianLian Digital climbed as much as 80%, YeePay jumped nearly 50%, and OKLink spiked over 45%.
This rapid market movement wasn’t spontaneous. Within just 48 hours, more than ten leading Chinese brokerages—including CITIC Securities, Guotai Junan, Haitong Securities, and China Merchants Securities—held a combined 13 dedicated conference calls focused exclusively on stablecoins. Additional sessions are scheduled in the coming days from firms like CICC and GF Securities, signaling deep institutional interest in this emerging digital asset class.
The Catalyst: Hong Kong’s Landmark Stablecoin Regulation
The spark behind this flurry of activity was the passage of Hong Kong’s Stablecoin Bill Draft by the Legislative Council on May 21, 2025. This groundbreaking legislation marks the first comprehensive regulatory framework for stablecoins in Asia, requiring all issuers to obtain a license, maintain 100% segregated reserve assets, and undergo regular independent audits.
Crucially, only licensed entities will be allowed to offer stablecoins to retail investors—closing a major loophole that previously exposed consumers to unregulated digital tokens. The Hong Kong Monetary Authority (HKMA) simultaneously unveiled its first cohort of participants in a regulatory sandbox, including major players like JD.com and Standard Chartered Bank, setting a precedent for compliant innovation.
At the same time, Circle Internet Group—the issuer of USDC, the world’s second-largest stablecoin—filed its IPO prospectus for a planned listing on the New York Stock Exchange. These parallel developments underscore a broader trend: stablecoins are transitioning from niche crypto tools to mainstream financial infrastructure.
What Are Stablecoins? Bridging Crypto Volatility and Real-World Utility
Stablecoins are a type of cryptocurrency designed to maintain price stability by being pegged to an underlying asset—typically fiat currencies like the U.S. dollar or Chinese yuan, but also commodities or baskets of assets. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins aim to combine the efficiency and decentralization of blockchain technology with the reliability of traditional money.
Their primary value lies in solving one of crypto’s biggest barriers: price instability. Before stablecoins, the extreme fluctuations in digital asset values made them impractical for everyday payments or long-term savings. With stablecoins, users can transact globally in near real-time, without counterparty risk or reliance on traditional banking rails.
Guotai Junan emphasized during its analyst call that Hong Kong’s new rules represent a pivotal shift—transforming crypto “from grassroots experiment to foundational financial infrastructure.” They project that use cases like cross-border payments and smart contract settlements will generate outsized returns for early-mover platforms.
According to their analysis, stablecoin issuers can earn substantial profits by holding reserves in low-risk instruments like U.S. Treasuries while paying no interest to token holders—potentially yielding profit margins three times higher than traditional banks. In fact, Tether (USDT), the largest issuer, reported over $13 billion in net profit in 2024 alone.
Strategic Implications: RWA, Digital Yuan, and Financial Sovereignty
Beyond immediate market reactions, analysts see deeper strategic implications. Huaxi Securities highlighted two key dimensions of Hong Kong’s regulatory breakthrough:
- Accelerating RMB Internationalization: By establishing a regulated "fiat-backed stablecoin" ecosystem, Hong Kong could bypass the SWIFT network for cross-border settlements, promoting wider use of the digital yuan in global trade.
- Building a “Nasdaq on the Blockchain”: Through the convergence of Real-World Assets (RWA) tokenization and stablecoin infrastructure, Hong Kong aims to become a hub for digitizing traditional finance—issuing tokenized bonds, real estate, and private equity on-chain.
RWA refers to the process of representing physical or legal assets—such as property deeds, invoices, or government securities—as blockchain-based tokens. When paired with stablecoins as settlement tools, these tokenized assets gain unprecedented liquidity and accessibility.
CITIC Construction Investment noted that compliant stablecoins could unlock trillions of dollars in dormant traditional assets by enabling fractional ownership and 24/7 trading. For example, a commercial building worth $100 million could be divided into thousands of tokens, each representing partial ownership and income rights—purchased and traded globally using stablecoins.
CITIC Securities echoed this view, pointing out that both Hong Kong and the U.S. are advancing stablecoin legislation at a critical moment. As RWA projects from mainland enterprises seek offshore fundraising avenues, Hong Kong’s regulated environment offers a trusted gateway. Furthermore, companies with expertise in digital currency settlement, cross-border fintech solutions, and supply chain finance platforms stand to benefit significantly from upgraded financial IT infrastructure.
👉 Explore how blockchain is reshaping real-world asset investment—fast, secure, and accessible.
Market Hype vs. Real Exposure: A Word of Caution
Despite the excitement, some market participants urge caution. A senior executive at a Beijing-based private equity firm warned that many so-called “stablecoin概念股” in the A-share market have minimal actual exposure to core stablecoin operations like issuance or reserve management.
“Most are payment gateway providers or legacy fintech firms,” they said. “Their involvement is peripheral at best.” This disconnect between investor enthusiasm and fundamental business alignment raises concerns about speculative bubbles forming around loosely connected names.
Nevertheless, the long-term trajectory appears clear: stablecoins are becoming integral to modern financial architecture. Whether facilitating faster remittances, enabling programmable money via smart contracts, or powering decentralized finance (DeFi), their role is expanding rapidly.
Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency pegged to a stable asset like the U.S. dollar or gold, designed to minimize price volatility while retaining blockchain benefits like fast transfers and transparency.
Q: Why did Hong Kong introduce stablecoin regulations now?
A: To position itself as a global leader in digital finance, attract institutional capital, protect retail investors, and support the development of tokenized real-world assets and cross-border payment systems.
Q: Are stablecoins safe?
A: Regulated stablecoins with audited reserves—like those under Hong Kong’s new law—are significantly safer than unregulated alternatives. However, risks remain if reserves aren’t fully backed or transparently managed.
Q: How do stablecoins make money for issuers?
A: Issuers earn interest by investing reserve funds in safe assets like U.S. Treasury bonds while not paying interest to token holders—a model similar to narrow banking with high-margin potential.
Q: Can stablecoins replace traditional banking?
A: Not entirely, but they can complement it by offering faster settlements, lower fees, and programmable features—especially in cross-border transactions and automated financial services.
Q: Will China adopt stablecoins widely?
A: While mainland China maintains strict controls on private cryptocurrencies, Hong Kong’s regulated framework allows for controlled experimentation. This creates a strategic bridge between innovation and compliance.
👉 Stay ahead of the curve—learn how regulated digital assets are transforming finance today.
Final Outlook: The Rise of Institutional-Grade Digital Money
The recent market surge reflects more than short-term speculation—it signals growing confidence in stablecoins as legitimate financial instruments. With Hong Kong leading regulatory innovation and global firms like Circle moving toward public markets, the era of institutional-grade digital money has arrived.
For investors and fintech developers alike, the message is clear: the future of finance is programmable, borderless, and increasingly built on stablecoins. As compliance frameworks solidify and real-world use cases expand, those positioned at the intersection of regulation, technology, and traditional finance will lead the next wave of digital transformation.
Note: Information provided is for educational and informational purposes only. It does not constitute financial advice or endorsement of any investment strategy.