The growing power of stable bases as a bridge between Web3 and traditional finances could give preference to markets like Hong Kongwhich has its own currency attached to the US dollar (USD) but the Asian financial center still faces challenges in attracting a major blockchain companies.
The Hong Kong dollar connection in the US currency is considered a unique advantage for the city, as most trading activities of Stablecoin happens through the Crypto currency aided by the US dollar. This can help to smooth business jobs for companies whose main stakes of property are also related to USD, including the largest Stablecoins Tether (USDT) and Circular coin USD (USDC).
“Hong Kong has long been a global financial center with a deep and current market of foreign exchange, supported by a regulatory environment that makes it easier to convert currency,” said David Katz, an Asian-Pacific strategy and politics in the circle. “His contribution to the US dollar and strong banking infrastructure makes it an attractive place for USD conversion.”
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The advantage of American trees supported by American dollars is so strong that some have seen that technology has further strengthened the dollar position in global finances, because the side dish for one requires a large currency reserve-no more being implemented in the law, including in Hong Kong with ITH waiting for stabibeloin regulation.
“The reality is everyone, everywhere in the world – China and everywhere else – he wants dollars,” said Chris Maurice, the African CEO aimed at Stabblecoin Exchange Yellow Card. “Because of this, you have 200 billion US dollars in a market cap at USD Stablecoini.”
Maurice talked about the brand Consensus Hong Kong Web3 Conference 18 February attended an event, organized by Crypto News Outlet Coindesk, in search of new business opportunities that were coming out of China, as they grow up with Africa. He said he had meetings with numerous main Chinese technological companies.
Hong Kong Financial Secretary Paul Chan Mo-PO speaks to the opening of the Hong Kong Web3 conference conference in Hong Kong 19 February 2025. Photo: Peter Parks Alt = Hong Kong financial secretary Paul Chan Moo speaks at the opening of the conference on the consensus on the web3 in Hong Kong. February> 2025.
Stablecoins were the main topic last month in Consensus Hong Kongduring which officials and companies in Hong Kong proclaimed city forces in traditional finances as a significant reason how it can capture the next stage of Web3 business.
“Globally, the application of web3 in finance is obtained to attract. Blockchain innovation not only reduces transaction costs, but also increase market transparency and effectiveness and accessibility of financial services,” financial secretary Paul Chan Mo-PO he said during an introductory note at the event. “Hong Kong, with advanced financial infrastructure and robust regulatory environment, is at the forefront of this transformation.”
Stablecoins have proven to be very attractive in the emergence markets, where there are a large outstanding population and the need for cases of use such as remittances. This made them particularly attractive in Asia and Africa, where Maurice said that the yellow card operates in “20 of all available meters in which the most difficult country they are dealing with” is.
“Given the status of Asia as a global trade center with significant remittance flows, Stablecoins will increasingly be used to settle international payments in real time, reduction of friction and cost,” said Fiona Murray, director of the Asian-Pacific Director at Blockchain Firma Ripple.
Ripple, best known for starting Cryptocurrency XRP, launched his own American Stablecoin supported by US dollars in December. According to Murray, it already has a market value of $ 120 million.
“With stabiblecoins, users can trade and transfer tokenized property at speed and efficiency – are available 24/7/365, which is extremely appropriate to the traditional and cryptic markets,” she added.
Stablecoin trading scope has reached $ 27.6 trillion in 2024, according to a report by the Crypto Exchange Cex Operator.io.io. According to one estimation from Crypto Tracker Coincodex, the value of the total crypto trading last year was $ 149.46 trillion, which placed stable trading nearly a five total crypto activity.
While Hong Kong is still progressing in the courtship of some international cryptocurrencies, Singapore The regional base for many companies operating in space remains. Circle and Ripple have their headquarters of Asia in the city country, as well as Coinbase, the largest American exchange of cryptocurrencies and the early support of the circle and USDC.
“The USDC provides a more effective solution compared to traditional USD transfers” for cases of use that include “a large amount of small value transactions,” said John O’Loghlen, Asian-Pacific head in Coinbase.
“USDC serves well with this need, offering lower transactions compared to traditional banking channels, retaining USD-Pegging stability,” he added. “This is especially valuable in sectors such as small -scale agricultural finances and trade, where traditional reserves for USD can be burdensome.”
Still, Hong Kong -O’s Crypto Currency Reserves could be considered as burdensome players in an industry looking for a market road. Virtual property platform license requirements – which are not applied to Stablecoins but apply to Coinbase as a general exchange – require that all user assets be stored locally.
According to the proposed regulations of Stablecoin, Hong Kong would require publishers of any stabibeloin who is actively selling to the residents to have a license, while Singapore licensed only the rear companies supporting the Singapore dollar or betraying in the city state.
Both Hong Kong and Singapore require 100 percent of the reserve. Hong Kong determines that the property is very liquid and low risk. Singapore also enables low -risk property, which in its current proposal allows debt securities that mature within three months.
In addition to the currency, the role of Hong Kong as a financial bridge to and from China is also attractive, which is why Maurice attended a consensual event. Said he meets with Fintech giants Tencent Holdings and Alibaba Group HoldingPOST owner, which dominate mobile payments in China and have their own off-border services.
Asked if he was concerned that technological giants could soon get into this space, setting up his own payment solutions for African markets, he rejected it as unlikely.
“These are not the kind of countries where you will enter these big companies and actually think of how to do things,” he said.
