Currently, cryptocurrencies and crypto-assets are not yet legal in China, and the country also implements relatively strict capital controls. Therefore, it is generally believed that the development of global stablecoins has a relatively limited direct impact on China. However, some studies suggest that there may be 70-80 million people in China holding USD-denominated stablecoins, with the total holdings potentially exceeding 60% of the global supply of such stablecoins. If this data is accurate, the impact of global stablecoin development on China’s cross-border capital flow management and domestic financial system stability cannot be entirely ignored.

Another issue raised by the development of global stablecoins is whether China should develop its own RMB-denominated stablecoin. In fact, China began researching and experimenting with digital currencies nearly a decade ago, primarily focusing on the development of the retail digital yuan (e-CNY) and the "mBridge" project. After the passage of the Stablecoin Ordinance in Hong Kong, relevant authorities have intensified research on RMB stablecoins. Given that regulators are not yet prepared to accelerate capital account liberalization in the short term, RMB stablecoins are unlikely to be implemented in mainland China. However, experimentation in offshore markets—such as issuing offshore RMB stablecoins—remains a possibility. This could be attempted not only in offshore markets like Hong Kong, Singapore, and London but also in onshore-offshore markets (e.g., the Hainan Free Trade Port or free trade zones in Shanghai). Regulators should perhaps expedite research on the regulatory frameworks of other countries and advance the establishment of a regulatory framework for offshore RMB stablecoin issuance at an appropriate time. The compliant development of stablecoins in Hong Kong will not only help promote Hong Kong as a global digital asset trading hub but also provide valuable experience for mainland China’s experiments with offshore RMB stablecoins.

Compared to stablecoins, domestic attention and discussion on RWA (Real World Assets) have been relatively limited. In short, RWA involves tokenizing real-world valuable assets (such as real estate, stocks, bonds, receivables, etc.) through blockchain technology, enabling these traditional assets to be traded, circulated, and managed on the blockchain. Theoretically, the implementation of RWA projects can enhance corporate asset liquidity and facilitate the rational and efficient allocation of resources globally, potentially becoming an important form of cross-border capital flows in the digital economy era. However, due to differences in regulations and supervisory policies across countries, as well as risks such as blockchain technical flaws, smart contract vulnerabilities, data credibility issues, data ownership disputes, asset value volatility, and insufficient market liquidity, the risks associated with RWA projects cannot be underestimated.

RWA first emerged between 2017 and 2020, primarily focusing on the tokenization of real estate and artwork. In recent years, with traditional financial institutions like Goldman Sachs launching tokenized products, RWA has gradually moved from the fringes of innovation into the mainstream. Its scale has rapidly grown from $5 billion in 2023 to $23 billion as of May 2025, becoming a significant aspect of blockchain applications. Currently, regulators worldwide are beginning to formulate RWA-related rules and establish standards for token issuance and trading to provide institutional safeguards for market development. Places like Hong Kong and the U.S. have piloted programs allowing qualified investors to participate in RWA through compliant platforms, such as investing in government bonds and real estate via compliant stablecoins and security tokens.

Since crypto-asset trading is not yet legal in mainland China, and cross-border capital flows are restricted, RWA pilot projects in the mainland are limited to asset digitization through consortium blockchains (e.g., AntChain), with tokens existing as internal equity certificates. Through collaboration with Ant Digital Technologies, a few projects—such as GCL New Energy’s photovoltaic asset RWA and Longshine Group’s charging pile RWA—have been successfully implemented, raising funds in the Hong Kong market. From a trend perspective, RWA could become a channel for Chinese enterprises to attract foreign investment and engage in global asset allocation. Of course, this requires regulators to appropriately accelerate the formulation of regulations related to crypto-asset trading, continue expanding institutional openness, and ensure that any pilot projects and their promotion are conducted in a compliant and risk-controlled manner.

This article is based on the speech content and has been confirmed by the author.