Crypto Market News: Stablecoins Cross $220B as Hong Kong Plans Multi-Currency Regulatory Framework

The stablecoin space has been heating up again, and there’s a lot to take in. With the global market now valued at $220 billion, it’s clear the industry is bouncing back stronger than ever, especially after the shockwaves caused by Terra’s collapse.

Stablecoin Usage Surges Past Traditional Payment Methods

According to Shen Jianguang, VP and Chief Economist at JD.com, stablecoin transactions have hit over $700 billion every month. That’s more than Visa and Mastercard are processing.

JD.com has even stepped into the game with its own Hong Kong dollar-backed stablecoin, introduced in July 2024. It’s being used inside their trade networks, making everyday operations smoother and faster. This move is a good example of how stablecoins can make a real difference in business transactions.

Not Everything Is About the US Dollar Anymore

Right now, US dollar-backed tokens still dominate the stablecoin market, around 99% of it. But things are beginning to shift. Rita Liu, CEO of RD Technologies, pointed out growing interest in non-USD stablecoins.

She mentioned how a CNH-backed stablecoin could gain traction, especially under Hong Kong’s upcoming regulations. With China pricing more of its exports in RMB, this change could come sooner than many expect.

Hong Kong Is Taking the Lead in Regulation

One place that’s stepping up is Hong Kong. The local government is working on a bill to regulate stablecoins, and it might be ready by May. This could clear the way for new stablecoin projects in the second half of the year.

Duncan Chiu from the Legislative Council has shared some positive signs, and experts like Dominic James Maffei from Standard Chartered see great potential. He even pointed to Japan’s Project Pax as a model Hong Kong could learn from to support USD and local stablecoins.

Multi-Currency Stablecoins Are Gaining Ground

We’re also seeing more interest in stablecoins tied to different national currencies. Ryan De Souza from Arbitrum mentioned working with a mix of currency options, not just USD.

For example, Mexican fintech company Bitso has launched an MXN stablecoin, and issuers in Singapore are rolling out Singapore dollar options. Ru Haiyang from Hashkey Exchange added that even big names like Bank of America and Japan’s Sumitomo Mitsui are exploring stablecoin solutions. It may soon be just as easy to switch between stablecoins and regular currency as it is to exchange dollars for yen.

Why People Are Turning to Stablecoins

A major reason behind this shift is speed and cost. Traditional remittances take days and come with high fees. In contrast, stablecoin transfers are faster, often done in under an hour and much cheaper.

Yam Ki Chan from Circle summed it up by saying that stablecoins offer features that traditional digital money just can’t match.

Final Thoughts

The stablecoin market is evolving fast. With growing interest from major companies, new currencies entering the scene, and stronger regulations on the way, stablecoins are slowly stepping into mainstream finance.