Solv Protocol Cofounder Yan Meng Discusses Stablecoin Trends and Legal Developments in US and Hong Kong

Coin WorldThursday, May 29, 2025 2:02 am ET
2min read

On May 29, Solv Protocol Cofounder Yan Meng shared his insights on the evolution of blockchain finance, focusing on stablecoins and tokenized real-world assets (RWAs). In a post summarizing his discussion with specialist Dr. Xiao

, Meng highlighted the latest trends and legal developments in the United States and Hong Kong. The conversation touched on the US Senate's passage of the GENIUS Stablecoin Act and Hong Kong’s approval of a bill for its own stablecoin project.

Meng emphasized the need for transparency and governance in

projects, noting that most will remain with low liquidity. He compared tokenization to a pyramid, with most assets at the lower base and only a few top assets gaining true liquidity and integrating with stablecoins. The lack of standardized valuation and clear legal status for many tokenized real-world assets hinders seamless trading and reduces market confidence. Meng stressed the importance of strong asset transparency and consistent governance rules to support large-scale adoption and liquidity growth. He predicted that technical standards will soon improve transparency across asset tokenization platforms.

Yan Meng explained how a robust stablecoin ecosystem could transform

, potentially improving financial access in various regions. Expanded stablecoin adoption could enable individuals and small businesses to in dollars using digital tokens, increasing dollar adoption outside traditional banking networks. Stablecoins could also help recipients receive dollar payments faster and cheaper. Meng warned against viewing stablecoins as mere speculative instruments, urging a focus on practical use cases to support real economic activity. He predicted that stablecoin innovations will reshape global payment and transfers, describing stablecoins as a vital pillar of the digital economy’s growth. These tokens can support trade in goods, services, and digital content around the world. The development of tokenized real-world assets will track stablecoin progress, with projects based on quality assets attracting investor trust and regulatory support. Meng warned that many tokens could fail without clear asset backing, emphasizing asset quality and legal certainty as growth drivers. Only stable offerings can bridge real markets and digital finance effectively. Collaboration between stablecoin issuers and regulators remains vital for growth.

Meng argued that US dollar stablecoin legislation aims to modernize financial infrastructure and strengthen the global role of the US dollar via technology. Critics view it as a geopolitical strategy, but Meng stressed efficiency benefits. The discussion also covered onshore and offshore stablecoin systems under different regulations. Onshore networks follow US laws while offshore markets adopt flexible rules. This duality may challenge global regulation and require new policy solutions. Meng mentioned that clear regulations need to balance innovation, growth, and financial safety. Legislative clarity can attract increased investment into digital asset markets. Meng and Dr. Xiao noted that stablecoin issuance by non-US firms creates diverse systems. A multi-layer network could include regulated, compliant, and loosely governed tokens. Layers might consist of US-regulated tokens and those governed by other laws. These varied frameworks can boost dollar reach but raise stability risks. They warned about regulatory gaps and uneven practices across different markets. Such risks require coordinated policy and enhanced oversight efforts worldwide. The discussion raised questions about future stablecoin governance and market resilience. Participants agreed that balanced rules encourage innovation while protecting financial interests.

Meng ended his post by mentioning that a US dollar stablecoin ecosystem will remain pivotal for blockchain adoption. He urged founders to build real services using stablecoins, not speculative tokens. Meng advised focusing on clear value, transparent governance, and practical applications. He cautioned that mere tokenization does not guarantee quick profit opportunities. Success depends on aligning blockchain projects with genuine economic activities. This perspective highlights the need for innovation anchored in real market needs. Readers should watch legislative changes and technology integration in the coming months. This approach may set new standards for real-world blockchain projects.