September 22, 2025
By Tsering Namgyal
Almost unnoticed until recently, stablecoins—crypto tokens pegged to the dollar or other assets—have emerged as the new game in town. A few years ago, the term barely existed in mainstream crypto conversations. When I was covering crypto in Hong Kong and Singapore nearly a decade ago, stablecoins were rare, and few had even heard of them.
Now, they are back with a vengeance. Regulatory frameworks in the US, Singapore, Hong Kong, the EU, and Japan have legitimized them, sparking fresh interest.
Hong Kong, in particular, is moving fast. Around 70 companies—including major players—have applied for stablecoin licenses. Most widely used stablecoins remain dollar-pegged, such as USDT and USDC.
Edul Patel, CEO of Indian crypto exchange Mudrex, told Blockwind News that stablecoins could become the backbone of global commerce within three to five years.
Even China—long hostile to cryptocurrencies—is reportedly exploring yuan-backed stablecoins. While state-owned banks and enterprises are interested, concerns over capital flight and money laundering make near-term adoption unlikely. In fact, the Chinese government recently cracked down on the marketing of information about stablecoins after rumors of yuan-backed tokens went viral.
Globally, stablecoins are already popular for remittances and cross-border payments, prompting central banks to accelerate their own digital currencies—retail and wholesale CBDCs.
A key catalyst for their resurgence was the US Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, signed into law on July 18, 2025. This legislation transforms stablecoins from niche instruments into mainstream financial tools by providing banks and financial institutions with a clear regulatory framework. It has also boosted confidence in digital assets, which now boast a $4 trillion market cap.
Cross-border payments remain slow and expensive—an inefficiency stablecoins are uniquely positioned to fix. McKinsey reports that correspondent banking networks handle $150 trillion annually, with settlements taking 2–5 days, multiple intermediaries, and fees of $25–$35 per transaction. Stablecoins can cut that to minutes or even seconds.
Some banks are already testing blockchain solutions. JP Morgan moves $2 billion daily on its platform, and PayPal launched its stablecoin in 2023, now worth $1.17 billion.
Currently, stablecoins are mostly US dollar-denominated. Circulation has doubled in the past 18 months, but they still account for just $30 billion in daily transactions—less than 1% of global money flows. Legacy infrastructure, by contrast, handles $5–$7 trillion in daily transfers.
On-chain data shows about $250 billion in stablecoins have been issued: $155 billion by Tether and $60 billion by Circle. Growth at the current pace could see stablecoins surpass traditional payments in under a decade. Standard Chartered projects issuance to hit $400 billion by year-end and $2 trillion by 2028. Daily transaction volumes could reach $250 billion within three years—rivaling major card networks.
The stablecoin revolution is here, quietly reshaping global finance—and the time to pay attention is now.
About the author
Tsering Namgyal is the co-founder and editor-in-chief of Blockwind News.
