Asia's rapid growth in stablecoins sets technological advancement in contrast with regulatory prudence

The

DLT Foundation is leading initiatives to grow Asia’s multi-currency stablecoin landscape, responding to the rising worldwide appetite for digital assets. As stablecoin transactions are projected to hit $46 trillion in 2025—almost three times Visa’s yearly total—regulators and businesses are hurrying to create systems that foster innovation while ensuring oversight. In Asia, where stablecoin use is rapidly increasing, companies like Union, , and Hong Kong’s Red Date Technology are transforming international payments and commerce, while authorities in China and Canada are addressing the challenges posed by decentralized finance.

Western Union has recently revealed a partnership with Anchorage Digital to launch a Solana-based stablecoin, joining a growing list of traditional financial institutions entering the sector. At the same time, MoneyGram is utilizing Circle’s

on , and PayPal’s stablecoin, supported by Paxos, has amassed $2.7 billion in assets. Stripe is also building its own blockchain infrastructure, indicating a broader industry shift toward stablecoin-powered payments. This trend is reflected in the $19.4 billion in stablecoin payments recorded so far in 2025, according to CoinDesk Research, as companies like OwlTing seek to gain ground with fast and affordable solutions.

The sector’s swift growth has attracted regulatory attention. The People’s Bank of China (PBOC) has issued a strong warning, labeling stablecoins as a risk to monetary sovereignty, especially in developing nations. Governor Pan Gongsheng stressed the need to crack down on domestic crypto activities and is closely watching regulated stablecoin projects in Asia, such as Japan’s JPYC, backed by 66 billion yen, and South Korea’s KRW1, which runs on Avalanche. “Stablecoins fail to meet essential standards like customer verification and anti-money laundering,” Pan remarked, echoing the Financial Stability Board’s (FSB) concerns, which reported the market’s circulation at $150 billion by mid-2025, according to the

.

On the other hand, Hong Kong is establishing itself as a center for digital assets, even as Beijing remains cautious. Yifan He, CEO of Red Date Technology, believes that geopolitical rivalry, especially between the U.S. and China, will fuel progress. “The more the U.S. pushes digital assets, the more China feels compelled to respond,” He commented, underlining stablecoins’ significance in international trade and capital movement. Hong Kong’s strategy, focusing on institution-driven projects like government bond tokenization and regulated stablecoins, aims to capitalize on its strategic position between East and West, as highlighted in coverage of

.

Regulatory frameworks are also taking shape. Canada intends to introduce stablecoin regulations in its November budget, seeking to categorize tokens as securities or derivatives and to curb capital outflows to U.S. dollar-backed assets. This follows the European Union’s MiCA rules, which set out requirements for reserves and liquidity. Meanwhile, the Stablecoin Standard’s new StableCheck tool—a global assessment system for fiat-backed stablecoins—aims to improve transparency and governance, according to the

. Developed by more than 35 industry collaborators, the framework evaluates stablecoins based on six factors, including the quality of reserves and reliability of redemption, through the .

Industry players are also evolving. Visa reported $2.5 billion in annualized stablecoin transactions in the fourth quarter of 2025, with 130 card programs linked to stablecoins in 40 countries. Visa is expanding its platform for tokenized assets, enabling banks to issue and redeem stablecoins, and is piloting prefunding solutions for international remittances, as outlined in the

. Likewise, Andreessen Horowitz (a16z) led a $7 million investment in Zar, a Pakistani stablecoin startup aiming for 100,000 users and 7,000 retail partners. The indicated that stablecoin transactions reached $1.25 trillion in September 2025, with the market capitalization climbing to $308 billion.

As Asia’s stablecoin market evolves, the balance between regulatory oversight and technological innovation will shape its future. With both geopolitical dynamics and new technologies at play, the region’s approach to stablecoins could influence global financial standards. For now, the push to define standards—whether through frameworks like StableCheck or national policies—highlights the pressing need to balance expansion with security.