Stablecoin Sector Poised for Real-World Growth as Hong Kong Leads Policy Implementation

Gan Tian, CEO of Huaxia Fund (Hong Kong), has highlighted the current state of the stablecoin business, noting that it is at a pivotal moment. The industry is transitioning from policy implementation to scene experimentation, with basic rules established and application scenarios poised for rapid growth. This shift indicates that the stablecoin sector is ready to move from theoretical frameworks to practical, real-world applications.

Gan Tian emphasized that the Hong Kong Web3 ecosystem is experiencing significant growth and new development opportunities. He revealed that Huaxia Fund is actively participating in the stablecoin sandbox testing initiated by the Hong Kong Monetary Authority. This testing focuses on integrating payment, subscription and redemption, and asset management, aiming to create a seamless and efficient financial ecosystem.

Gan Tian believes that the future of the stablecoin market will be determined by entities that can establish a closed loop of "compliance + implementation + asset connection." This integrated approach will be crucial for market leadership, as it ensures that all aspects of the stablecoin ecosystem are interconnected and compliant with regulatory standards.

Regarding the recently released Policy Manifesto 2.0, Gan Tian expressed his approval, noting that it demonstrates a deeper development vision for the region. This strategy, which focuses on gradual and systematic development, is expected to enhance market operation quality, promote business innovation, and increase market participation. The manifesto's emphasis on a structured approach to development is seen as a positive step towards a more robust and innovative financial ecosystem.

Gan Tian also analyzed the impact of Web 3.0 technology on financial assets, stating that it is driving the comprehensive tokenization of these assets. Stablecoins, with their efficient and low-cost cross-border payment advantages, have already made significant inroads into developing countries, with transaction volumes in some cases surpassing those of sovereign currency systems. This trend suggests that stablecoins could play a pivotal role in the future global monetary system, potentially reshaping the underlying logic of international financial infrastructure.

Looking ahead, Gan Tian predicted that the global monetary system may converge towards a few mainstream stablecoins. This shift could provide a new path for the internationalization of the RMB and reshape the international financial infrastructure. The region's practice in this area is seen as a potential model for other regions looking to integrate stablecoins into their financial systems.