By Alex Zuo, Vice President, Cobo

Stablecoins are fast emerging as one of the most transformative innovations in global finance. What started as a niche solution for cryptocurrency users is now reshaping cross-border payments, institutional settlements, and the broader architecture of digital value transfer.

This evolution marks more than a technological upgrade—it signals a foundational shift in how money moves across borders and business ecosystems. For Hong Kong, this presents a timely and strategic opportunity to lead in the future of regulated, blockchain-enabled finance.

Why Global Businesses Are Turning to Stablecoins for Cross-Border Payments

At Cobo, we’ve seen a notable increase in stablecoin-related inquiries since late 2023. What’s driving this momentum isn’t hype or regulation—it’s demand from enterprises looking for faster, more cost-efficient ways to settle global transactions.

From cross-border payment providers to e-commerce exporters and digital service platforms, companies are actively adopting stablecoins like USDT (Tether) and USDC (USD Coin). These assets offer speed, transparency, and neutrality—making them far more effective than traditional banking rails in many cross-border use cases.

Today, enterprise-grade digital wallets and crypto payment infrastructure are no longer experimental; they are becoming operational essentials. Whether for B2B remittance, international supplier payments, or treasury optimization, stablecoins are increasingly embedded in corporate finance strategies.

Hong Kong’s Competitive Edge in Digital Asset Regulation

Hong Kong is quickly establishing itself as a potential global leader in stablecoin regulation and digital asset licensing. The city’s upcoming stablecoin regulatory framework is setting a high bar, with clear compliance expectations for reserve backing, AML/CFT integration, and transaction transparency.

This level of regulatory certainty is especially attractive to institutional players. From fintech platforms and export-focused businesses to Web3 startups, companies in Hong Kong are already using stablecoins not just for experimentation, but for real-world settlement and international growth.

If Hong Kong successfully enables multi-currency, regulated stablecoins, it could redefine its role in the Asia-Pacific digital finance ecosystem—emerging as a key hub for stablecoin clearing, blockchain payments, and even institutional DeFi integration.

The Strategic Path Forward for RMB Stablecoins

While USD stablecoins dominate the global market, interest in RMB-backed stablecoins is quietly building. Yet the path for a renminbi (RMB) stablecoin is more complex, shaped by China’s centralized digital currency strategy and monetary policy priorities. Mainland regulators have prioritized the digital yuan (e-CNY) over commercially issued stablecoins, given concerns about capital flow management and financial stability risks. As a result, most Chinese financial institutions remain cautious.

However, Hong Kong is uniquely positioned as the world’s largest offshore RMB center. Recent policy signals from Hong Kong’s Financial Secretary — such as adopting an “open model” that allows licensed stablecoin issuers to peg to multiple fiat currencies — have opened the door for RMB-denominated pilots.

Over time, compliant RMB stablecoins could play a valuable role in cross-border trade settlement, particularly along Belt and Road corridors where banking access is limited. While they’re unlikely to displace USD-based stablecoins in the near term, they can support China’s broader goal of RMB internationalization through blockchain finance.

Institutional Adoption Depends on Trust Infrastructure

The future of stablecoins doesn’t rest on issuance alone. Widespread enterprise adoption depends on the availability of secure, scalable, and compliant infrastructure to support these digital assets.

This includes regulated crypto custody, transaction risk management tools, KYT (Know Your Transaction) and blockchain analytics, Travel Rule compliance systems, and real-time transaction monitoring. Such components form the backbone of institutional-grade digital asset operations, ensuring that companies can integrate stablecoins into their workflows without compromising on security or compliance.

At Cobo, we’re building this trust infrastructure to help clients adopt stablecoins safely and confidently. From secure multi-party computation (MPC) wallets to integrated compliance workflows, we enable businesses to transact on-chain while meeting the highest standards of risk control and regulatory readiness.

The Rise of a Programmable Global Financial Network

What we’re witnessing is the emergence of a new global financial network — one that is blockchain-native, programmable, and interoperable across borders.

Stablecoins are the first real bridge between traditional finance and decentralized infrastructure. They combine the convenience and liquidity of fiat money with the transparency and automation of blockchain. For many businesses, this combination is unlocking new models for treasury management, international expansion, and real-time settlement.

For Hong Kong, this is a unique opportunity. By aligning progressive regulation with institutional demand, the city can attract capital, talent, and financial infrastructure that will define the next decade of digital finance.

For Chinese enterprises expanding overseas, stablecoins offer more than faster payments. They provide flexible, compliant tools to navigate cross-border capital deployment in an increasingly complex regulatory environment.

And if this new financial network has a starting point in Asia, all signs point to Hong Kong.