Five Emerging Trends Shaping Asia Pacific’s Stablecoin Market

Stablecoins are becoming significant to global payment development.

Stablecoin transaction value surged by 54% to USD5.7 trillion in 2024, with 1.3 billion transactions processed

^{Source: Visa Onchain Analytics Dashboard powered by Allium}

The average supply of USD-backed stablecoins reached USD235 billion in July 2025, up 73% month-on-month, signalling explosive growth.

Asia Pacific is rapidly catching up, with governments, fintechs and financial institutions embracing stablecoins to modernise payments, enhance financial inclusion and compete globally. This article explores five emerging trends driving stablecoin development across the region.

USD stablecoins fuel Asia’s trade and payment ecosystem

USD-backed stablecoins are an emerging option for Asia-based businesses trading with the US or transacting in USD. This is driven by strong US regulatory support, including the GENIUS Act, which mandates monthly reserve disclosures and backing by liquid assets like US Treasury bills.

With eight major USD stablecoins in circulation and 11 blockchain exchanges enabling 24/7 cross-border payments, Asian exporters, advertisers and e-commerce platforms increasingly prefer USD stablecoins for their speed, stability and global acceptance. In high-inflation regions, USD stablecoins offer a reliable store of value and near-instant settlement – critical for operational efficiency.

Singapore, Hong Kong and Japan emerge as Asia’s regulatory pioneers

Three regulatory pioneers, Singapore, Hong Kong and Japan, lead Asia Pacific’s stablecoin development. Singapore’s MAS finalised its stablecoin framework in August 2023, requiring 100% reserve backing and licensing for issuers exceeding SGD5 million in circulation. Hong Kong’s Stablecoins Bill, effective August 2025, mandates licensing for fiat-referenced stablecoins and enforces strict AML, reserve, and redemption rules. Japan’s Payment Services Act regulates stablecoins as “electronic payment instruments”, allowing licensed banks and transfer service providers to issue them. These jurisdictions offer clarity and credibility, attracting global issuers and positioning themselves as hubs for compliant digital asset innovation.

Stablecoins to complement CBDCs in the pioneering markets

Key central banks in the region are pursuing both CBDCs and stablecoins, recognising their distinct roles. CBDCs like Singapore’s Project Ubin and Hong Kong’s e-HKD focus on wholesale settlement and foundational infrastructure. Stablecoins, meanwhile, serve commercial and retail use, from crypto-trading to Web3 applications. By regulating domestic stablecoins (eg JPY-backed tokens in Japan), governments maintain monetary sovereignty while enabling innovation. This dual-track strategy ensures financial stability and positions these markets as global fintech leaders, rather than passive adopters of USD-dominated digital finance.

Incumbents and fintechs battle for market leadership

Traditional banks and fintechs compete intensely to lead stablecoins in Asia. In Singapore, StraitsX and Paxos Digital issue SGD and USD stablecoins, backed by reserves held at DBS and Standard Chartered. In Hong Kong, Standard Chartered is launching an HKD stablecoin with Animoca Brands, while ZA Bank provides reserve banking services. In Japan, SBI VC Trade facilitates USDC access, and the Progmat network (backed by MUFG, SMBC, and Mizuho) is pioneering institutional stablecoin infrastructure. Furthermore, Ant Group is exploring licences in several markets to improve transactions efficiency and customer experience. This dynamic landscape reflects a broader trend: financial incumbents embracing tokenisation, while fintechs push the boundaries of programmable money and cross-border liquidity.

Three key applications driving stablecoin adoption

Stablecoins are gaining traction in Asia Pacific through three high-impact applications:

B2B cross-border transactions: Stablecoins offer instant settlement, low fees, and 24/7 availability, making them ideal for e-commerce, import/export, and advertising industries. Businesses can bypass costly wire transfers and improve liquidity management.

C2C remittances: Migrant workers and students benefit from cheaper, faster remittances via stablecoins, reducing fees from 3-6% to as low as 0.2%.

Asset tokenisation: Stablecoins facilitate instant settlement of tokenised assets like real estate and bonds. They enable fractional ownership, programmable finance, and automated compliance, unlocking new liquidity and investment models.

Challenges and opportunities

Despite progress, Asia’s stablecoin ecosystem faces hurdles:

• Limited regulatory coverage: Only Singapore, Hong Kong and Japan have mature frameworks.
• Interoperability issues: Fragmented blockchains complicate cross-platform transactions.
• CBDC competition: State-backed digital currencies in markets like China may overlap with stablecoin functions, limiting expansion into those markets.

Yet, momentum grows, with markets like Malaysia launching innovation hubs to explore MYR-backed stablecoins, signalling broader regional adoption.

Read Transformative Trends in Commercial Payment Reconciliation for more analysis on applications.