It can give the growing power of Stablecoins as a bridge between Web3 and traditional financing a market advantage like Hong Kong, which has been linked to US dollar (USD), but the Asian financial center still faces challenges in attracting major Blockchain companies.
The connection of the dollar in Hong Kong to the American currency is seen as a unique advantage of the city, as the majority of trading activity in Stablecoin occurs through cryptocurrencies supported by US dollars. This can help get rid of the commercial processes of companies that are also linked to the main assets with US dollar, including the largest Stablecoins Tether (USDT) and the USDC.
“Hong Kong has long been a global financial center with a deep foreign exchange market, supported by an organizational environment that facilitates the transformation of the currency,” said David Katz, Vice President of the Asia Pacific region of strategy and politics at Circle. “Connecting the US dollar and strong banking infrastructure makes it an attractive position for US dollar’s transfers.”
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The US dollar-backed Stablecooins preference is so strong that some have witnessed that technology has established the dollar’s position in global financing, as it requires one to one-to-one-backed currency-which is increasingly applied under the law, including in Hong Kong with its suspended organization.
“The fact is that everyone, everywhere in the world – China and everywhere else – wants the dollar,” said Chris Morris, CEO of the Stablecoin Soricant Card, which focuses on StableCoin Exchange, which focuses on the StableCoin Exchange card that focuses on the Stablecoin Exchang card. “This is why you have $ 200 billion now in the maximum market in the US dollar.”
Morris spoke on the sidelines of the Hong Kong Web 3 conference on February 18. The event, organized by the Crypto Coindsk news port, attended, in search of new job opportunities that graduate from China with the country’s ties with Africa’s growth. He said that he held meetings with a number of major Chinese technology companies.
Hong Kong Chan Bo Bo’s financial secretary at Hong Kong Web 3 in Hong Kong on February 19, 2025. Photo: Peter Parks Alt = Hong Kong Finance Minister Paulo Polo Buffy talks at the opening of the Hong Kong Web Kong Conference in Hong Kong on February 19, 2025.
Stablecoins was a major theme last month in the consensus of Hong Kong, as Hong Kong officials described the city’s strengths in traditional financing as an important reason for how to get the next stage of Web3 business.
“At the global level, the Web3 application in financing is gaining traction. Blockchain innovations not only reduce the costs of transactions, but also enhance the market transparency, the efficiency of financial services and easy access to them,” said financial secretary Paul Chan Mo Bo during his observations in this event. “Hong Kong, with its advanced financial infrastructure and the strong organizational environment, is at the forefront of this shift.”
Stablecoins has proven to be very attractive in emerging markets, where there are large groups of population and special needs such as transfers. This made them particularly attractive in Asia and Africa, where Morris said that the yellow card works in “20 of every available scale is the most difficult countries to do business.”
“Given the status of Asia as a global commercial center with significant flows in transfers, Stablecoins will be increasingly used to settle international payments in actual time and reduce friction and costs,” said Viona Murray, the administrative director of the Asia Pacific Company at Ripple Rebly.
Ripple, which is famous for starting to start Cryptocurrency XRP, launched the US dollar -backed Stablecooin in December. It already has a market value of $ 120 million, according to Mauri.
She added: “With Stablecoins, users can trade and transfer the distinctive assets of speed and efficiency – it is available around the clock throughout the week that is very comfortable with both traditional markets and encryption.”
The trading volume in Stablecoin was 27.6 trillion US dollars in 2024, according to a report issued by the Crypto Excination CEX.IO. According to one of the estimates from the Crypto Tracker Coincodex, the value of the cryptocurrency trading last year was 149.46 trillion US dollars, which put Stablecoin trading in nearly five of the total encryption activity.
While Hong Kong continues to make progress in flirting with some international encryption work, Singapore is still the preferred regional base for many companies operating in space. Circle and Ripple has their headquarters in Asia in the city of the city, as well as Coinbase, the largest exchange of an encrypted currency in the United States, an early circle of circle and USDC.
“Usdc provides a more efficient solution compared to the transfer of the traditional US dollar” to use cases that include “a large volume of small value transactions,” said John Olujen, head of the Asia Pacific region at Coinbase.
He added: “USDC serves this need well by providing less transaction fees compared to traditional banking channels, while maintaining the stability of the US dollar.” “This is a matter of special value in sectors such as agricultural financing and small trade, where the requirements of the traditional US dollar reserves can be stressful.”
However, it is the requirements of the Hong Kong currency reserves that can be considered stressful for players in the industry who are looking for a way to the market. The requirements for the virtual asset trading platform – which do not apply to Stablecoins, but applies to Coinbase General exchanges – store all the origins of the user locally.
Under the proposed Stablecoin regulations, Hong Kong will require the exporters of any stablecoin that effectively markets residents to obtain a license, while Singapore will only authorize the symbols of the company supported by the Singapore dollar or its issuance in the city state.
Both Hong Kong and Singapore require 100 percent reserves. Hong Kong determines that the assets are very liquid and low risk. Singapore also allows low -risk assets, which allows her current suggestion to securities that ripen within three months.
Besides connecting the currency, the role of Hong Kong as a financial bridge to and from China is also attractive, which is why Morris attended the unanimity event. He said he was meeting with Fintech Giants Tencent Holdings and Alibaba Group Holding, the owner of the post, which dominates mobile phone payments in China and has border services.
When asked if he was concerned that technology giants can soon be transgressed in this field, and prepare their payment solutions for African markets, he rejected them as unlikely.
“This is not the type of countries in which these major companies will enter and learn how to make things,” he said.
