Stablecoins, cryptocurrencies linked to traditional currencies like the US dollar, now account for 20% of all crypto transactions, highlighting their growing role in bridging traditional finance with Web3.

US dollar-backed stablecoins dominate globally, with a market cap of around US$200 billion, as noted by Chris Maurice, CEO of Yellow Card.

Hong Kong is emerging as a key market for stablecoin activities. Its currency peg to the US dollar, along with a strong banking and foreign exchange sector, may simplify transactions for companies using stablecoins like USDT and USDC.

“Stablecoins tied to the US dollar help facilitate operations in markets like Hong Kong,” said David Katz, Asia-Pacific VP of strategy and policy at Circle.

To strengthen oversight, Hong Kong plans to introduce stablecoin regulations. This move aligns with rising global demand, reinforcing the US dollar’s importance in international finance.