While dollar-pegged stablecoins have dominated the crypto landscape for a decade, 2025 marks a major geopolitical turning point. As the West continues to debate regulatory frameworks, Asia is methodically building an alternative monetary infrastructure that could reshape global financial power dynamics.
Hong Kong and Japan Lead the Way
On August 1, 2025, Hong Kong reached a historic milestone by activating its comprehensive regulatory regime for stablecoins. This 269-page framework requires a mandatory license from the Hong Kong Monetary Authority (HKMA) with a minimum capital of 25 million HKD (approximately 3.2 million USD). Market response was immediate: more than 40 companies expressed interest in obtaining a license as soon as the regime came into effect.
On October 27, 2025, Japan launched JPYC, its first yen stablecoin approved by the Financial Services Agency (FSA). Operating on Avalanche, Ethereum, and Polygon blockchains, JPYC maintains a 1:1 parity with the Japanese yen. The most strategic element: JPYC invests 80% of its reserves in Japanese government bonds, foreshadowing a convergence between decentralized finance and state monetary policy. The stated goal is to issue 1 trillion yen (approximately 6.8 billion USD) over three years.
Unprecedented Volume Explosion
Figures published by Circle in October 2025 validate the scope of this transformation: the Asia-Pacific region recorded 2.4 trillion dollars in on-chain stablecoin transactions between June 2024 and June 2025, establishing Asia as the world’s fastest-growing stablecoin market with an annual growth rate of 69%.
Singapore and Hong Kong now rank as the world’s second and third largest centers for stablecoin activity, just behind the United States. The Singapore-China corridor is emerging as the most active route for cross-border stablecoin flows, with monthly volumes rising from less than 100 million dollars in early 2023 to over 3 billion dollars in early 2025.
According to Fireblocks’ 2025 State of Stablecoins report, 56% of institutions in Asia are already actively using stablecoins — the highest adoption rate in the world — while an additional 40% are in the pilot or planning phase.
Europe and the US Fall Behind
Facing Asian acceleration, Europe finally responded in December 2025 with the announcement of Qivalis, a consortium of ten major European banks including BNP Paribas, ING, UniCredit, and CaixaBank. Based in Amsterdam, Qivalis aims to launch a MiCA-compliant euro stablecoin in the second half of 2026.
But this initiative reveals the extent of Europe’s delay. The MiCA regulation, enforced since December 30, 2024, establishes requirements so strict that several major issuers have left the European market. The provisions prohibit paying interest on stablecoins, impose daily transaction caps, and potentially require double licensing.
The United States established its first comprehensive federal framework with the adoption of the GENIUS Act, signed by President Trump on July 18, 2025. However, the timing is revealing: while Hong Kong has had an operational regime since August 2025 and Japan approved its first yen stablecoin in October 2025, the American framework will not be fully effective until 2027 at the earliest.
Dollar Dominance Faces Emerging Multipolarity
Market data confirms the overwhelming dominance of dollar-denominated stablecoins. In Q3 2025, Tether (USDT) closed with a market capitalization of 175 billion USD (about 60% of the market), while Circle (USDC) reached 73.4 billion USD (about 25% of the market). Together, they control approximately 85-90% of total stablecoin supply.
Yet signs of fragmentation are emerging. The combined market share of USDT and USDC fell from 88% in January 2025 to 82% in October 2025. While this six-point drop may seem modest, it signals that competition is intensifying.
Facing this dynamic, several Asian jurisdictions are methodically building non-USD alternatives. The strategy is not to reject the dollar frontally, but to create strategic monetary optionality.
Project mBridge: A SWIFT Alternative
Beyond private stablecoins, Asia is also developing alternative public infrastructures to the SWIFT system. Project mBridge (Multiple CBDC Bridge) represents the most advanced initiative: a blockchain platform enabling real-time cross-border payments and foreign exchange transactions using CBDCs from multiple jurisdictions.
Co-developed by the Hong Kong Monetary Authority, Bank of Thailand, Central Bank of the UAE, and People’s Bank of China, mBridge has demonstrated technical viability with over 160 transactions totaling more than 171 million HKD, with instant settlements. The claimed benefits are substantial: 50% reduction in cross-border payment costs and transactions executed in seven seconds.
Saudi Arabia’s accession in June 2024 opens the possibility of commodity settlement via mBridge while bypassing the US dollar — a major geopolitical development.
Toward Hybrid Monetary Systems
The emergence of national stablecoins and CBDCs does not represent binary competition, but rather convergence toward hybrid monetary systems combining sovereign stability and blockchain efficiency.
The Indonesian example perfectly illustrates this trend. Bank Indonesia is developing through Project Garuda a CBDC with stablecoin mechanics, backed by digital central bank securities and tokenized government bonds.
Singapore is also advancing hybrid models with Project BLOOM (Borderless, Liquid, Open, Online, Multi-currency), launched in October 2025, aiming to support experimentation with tokenized bank liabilities and regulated stablecoins for settlement.
International Institutions Issue Warnings
The Bank for International Settlements (BIS) issued a severe warning in its 2025 Annual Economic Report regarding stablecoins. Concerns include loss of monetary sovereignty and capital flight, particularly for emerging economies, as well as risks to financial stability.
Christine Lagarde, ECB President, has also expressed major concerns, noting that non-domestic stablecoins pose challenges ranging from operational resilience to consumer protection.
For emerging countries, the risks are existential: rotation of domestic deposits to USD stablecoins, pressure on local currencies, and policy dilemmas for central banks.
Conclusion: A Silent but Decisive Shift
Analysis of 2025 developments confirms a central thesis: Asia is methodically building an alternative digital monetary infrastructure, not by frontally rejecting the dollar, but by creating strategic optionality that progressively erodes USD dominance.
The numbers are unequivocal: 2.4 trillion dollars in stablecoin transactions in one year in the Asia-Pacific region, 56% of institutions already active, Hong Kong operational since August 2025, Japan with JPYC launched in October 2025. Facing this acceleration, Europe is reacting belatedly with Qivalis planned for H2 2026, and the United States will not see its GENIUS Act framework fully effective until 2027.
The delay is not merely temporal; it is conceptual. While the West debates legal definitions, Asia experiments with real use cases. By the time the shift becomes obvious, the rules of digital currency may have already been rewritten according to logic that America did not write.
