Why Stablecoins Are Taking Off: Market Surge, Regulatory Momentum, and Investment Opportunities

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The stablecoin wave is no longer just a crypto niche — it's becoming a mainstream financial phenomenon. In recent weeks, stablecoin-related stocks have surged dramatically, sparking investor interest and prompting major financial institutions to dive deep into research. From regulatory milestones in Hong Kong and the U.S. to tech giants like JD.com and Ant International pursuing stablecoin licenses, the ecosystem is rapidly evolving. Let’s explore what’s behind the momentum, how markets are responding, and where the real opportunities lie.

What Are Stablecoins?

👉 Discover how stablecoins are reshaping global finance with real-world applications today.

Stablecoins are a type of cryptocurrency designed to maintain price stability by being pegged to an underlying asset — most commonly fiat currencies like the U.S. dollar or euro. Unlike volatile digital assets such as Bitcoin or Ethereum, stablecoins aim to minimize price fluctuations, making them ideal for everyday transactions, cross-border payments, and value storage.

According to CICC (China International Capital Corporation), stablecoins serve a fundamentally different role than speculative crypto assets. While Bitcoin functions more like a store of value or investment vehicle, stablecoins operate as practical monetary tools — fulfilling core functions of money: medium of exchange, unit of account, and store of value.

This functional distinction has positioned stablecoins at the heart of the next-generation financial infrastructure, bridging traditional finance (TradFi) with decentralized finance (DeFi).

Market Momentum: Stablecoin Stocks Soar

On June 23, 2025, the Wind Stablecoin Index surged 8.40%, closing at 1,728.62 points — a new high for the year. The rally was broad-based:

Since early June, the index has climbed over 21%, with standout performers including:

This surge reflects growing investor confidence in companies positioned to benefit from stablecoin adoption — particularly those involved in blockchain infrastructure, payment systems, and financial technology.

Regulatory Catalysts Fuel Growth

Two major regulatory developments in mid-2025 have provided critical legitimacy to the stablecoin sector:

1. Hong Kong Enacts Stablecoin Legislation

In May 2025, Hong Kong’s Legislative Council passed the Stablecoin Ordinance Bill, set to take effect on August 1. The law establishes a licensing regime for fiat-backed stablecoin issuers and strengthens oversight of virtual asset activities. This positions Hong Kong as a potential hub for regulated digital currency innovation in Asia.

2. U.S. Advances Federal Stablecoin Framework

In June, the U.S. Senate approved the GENIUS Act, creating the first federal regulatory framework for dollar-pegged stablecoins. The bill aims to ensure transparency, consumer protection, and financial stability while fostering innovation — signaling Washington’s intent to lead in digital currency standards.

These coordinated moves across major economies suggest that stablecoins are transitioning from experimental projects to regulated financial instruments.

Tech Giants Enter the Arena

Market excitement isn't just driven by policy — it's also fueled by strategic moves from leading tech firms.

JD.com Eyes Global Stablecoin Expansion

JD.com founder Richard Liu revealed that the company is preparing to apply for stablecoin licenses in key currency jurisdictions worldwide. The goal? To enable seamless corporate foreign exchange services and drastically reduce cross-border transaction costs using blockchain-based settlement.

Ant International Accelerates Stablecoin Plans

Ant International announced it will submit license applications as soon as regulatory pathways open. The firm emphasized its ongoing investments in global treasury management and strategic partnerships aimed at scaling AI, blockchain, and stablecoin solutions into real-world, large-scale use cases.

These developments underscore a shift: stablecoins are no longer fringe experiments but strategic assets for global digital commerce.

Why Analysts Are Bullish on Stablecoins

Multiple brokerage firms have recently published in-depth reports highlighting long-term growth potential.

CITIC Securities: A Bridge Between Worlds

CITIC views stablecoins as foundational infrastructure linking digital assets with the real economy. With inherent price stability and native compatibility with blockchain networks, stablecoins are poised for compliant growth as global regulations mature.

Zhongtai Securities: The Future of Global Payments

Stablecoins are emerging as essential tools in both centralized and decentralized financial systems. Due to their speed, low cost, and programmability, they're expected to play an increasingly vital role in international remittances and trade finance.

Shenyin & Wanguo Securities (申万宏源): Transaction Volume Surpasses Traditional Giants

Data reveals a striking trend: annual transaction volume for stablecoins reached $15.6 trillion — approximately 119% of Visa’s transaction volume and 200% of Mastercard’s. Beyond crypto trading, real-world asset (RWA) tokenization is gaining traction. With tangible assets backing tokens — such as real estate or bonds — investor trust increases significantly.

👉 Learn how real-world asset tokenization is unlocking trillions in dormant capital.

Huatai Securities: Efficiency Meets Security

Stablecoins streamline cross-border payments by cutting intermediaries and reducing settlement times from days to seconds. For RWA ecosystems — where physical assets are digitized and traded on-chain — stablecoins act as the primary settlement layer, enhancing liquidity and accessibility.

Key Investment Themes Emerging

Based on analyst insights, several high-potential sectors are emerging:

Frequently Asked Questions (FAQ)

Q: Are stablecoins safe to use?
A: Regulated fiat-backed stablecoins like USDC or those issued under Hong Kong’s new ordinance are generally considered safe due to regular audits and reserve transparency. However, users should always verify issuer credibility.

Q: How do stablecoins maintain their value?
A: Most are backed 1:1 by reserves of fiat currency (e.g., USD), held in regulated banks. Some use algorithms or over-collateralized crypto assets, though these carry higher risk.

Q: Can I earn yield on stablecoins?
A: Yes — through DeFi lending protocols or centralized platforms offering interest-bearing accounts. Always assess counterparty risk before depositing.

Q: What’s the link between stablecoins and RWA?
A: Real-world assets like property or invoices can be tokenized on blockchain. Stablecoins provide the trusted, low-volatility currency needed to buy, sell, and settle these tokens efficiently.

Q: Will stablecoins replace traditional money?
A: Not entirely — but they’re likely to coexist, especially in cross-border transactions where legacy systems are slow and expensive.

Q: How can I start using stablecoins safely?
A: Begin with reputable platforms that offer secure wallets and compliance with local regulations. Understand tax implications and keep private keys protected.

Final Outlook

The convergence of regulatory clarity, institutional interest, and technological readiness has created a perfect storm for stablecoin adoption. With transaction volumes already rivaling global payment networks and major corporations integrating them into treasury operations, the trend appears structural rather than cyclical.

As innovation continues — especially in areas like programmable money and tokenized assets — early adopters stand to gain significant advantages.

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