Institutions Bullish on Stablecoin Prospects

The aforementioned primary market investor noted that while stablecoins and Bitcoin are both cryptocurrencies, stablecoins innovate by pegging their value to stable assets (e.g., the U.S. dollar, gold, or other fiat currencies), addressing the high volatility of traditional crypto. The IPO of Circle—dubbed the "first stablecoin stock"—delivered strong returns for early investors, fueling growing market enthusiasm.

Chen Fu, Non-Bank Financial Chief at GF Securities, recently stated that stablecoin ecosystems span four key segments: issuance, custody, payment, and trading, with issuance, payment, and trading offering the highest value and representing core investment opportunities. Enterprises with industrial use cases—particularly those handling cross-border payments or leveraging stablecoins to optimize supply-chain liquidity—will hold a competitive edge.

He highlighted the high-growth potential of payment and trading segments. Payment providers earn via transaction fees but require global licenses (five Chinese institutions have secured overseas payment permits). These segments directly serve market demand and are pivotal to stablecoin circulation, positioning related firms to benefit earliest from industry expansion.

Min Sheng Securities anticipates that post the Stablecoin Ordinance’s August 1, 2025, enactment, tech giants like Ant Group and JD.com—with their robust blockchain expertise and domestic use cases—will likely secure among the first stablecoin licenses from Hong Kong’s Monetary Authority, building tangible stablecoin and RWA (Real-World Asset) ecosystems.

Boston Consulting Group projects the RWA market to reach $16 trillion by 2030, with stablecoins penetrating 30%–50% of this space. Projects like Ant Digital’s solar-asset tokenization and RealT’s U.S. real estate tokenization exemplify stablecoins’ potential in bridging digital and physical economies.

Hualong Securities argues that HKD-pegged stablecoins will streamline China’s participation in global on-chain finance, underscoring their role in advancing RMB internationalization.

On risks, Chen Fu warned of "regulatory shifts" and "technical vulnerabilities." As a nascent sector, stablecoin rules may evolve, while blockchain security flaws could trigger volatility. "Investors should prioritize compliant, technically sound firms with clear demand—avoiding hype-driven plays."