Stablecoin News – On July 8, 2025, prominent Chinese economist Hong Hao forecasted that the stablecoin market could reach $1 trillion in the near term, driven by their potential to slash cross-border transaction costs. Speaking at a Hong Kong fintech conference, Hao highlighted HKD-based stablecoins as a growth driver, aligning with the city’s upcoming licensing regime, set to launch on August 1. His prediction contrasts with JPMorgan’s more conservative $500 billion estimate by 2028, reflecting optimism about Asia’s role in digital finance.
Hao’s forecast emphasizes stablecoins’ efficiency in trade settlement, particularly for HKD and yuan-pegged tokens, which could challenge U.S. dollar dominance. Hong Kong’s “LEAP” framework, supporting over 40 license applicants, bolsters this vision, with firms like Ant Group eyeing yuan-based stablecoins. Social media posts on July 8 echoed Hao’s bullish outlook, with analysts noting a $253.7 billion stablecoin supply in June, per Finery Markets. However, Shenzhen’s July 7 scam warnings highlight risks that could temper mainland China’s adoption.
Regulatory hurdles, including reserve audits and AML compliance, pose challenges to Hao’s trillion-dollar vision. The Atlantic Council’s July 8 report cautioned about consumer complexity and financial stability risks. Despite these, Hao’s prediction underscores stablecoins’ transformative potential, with Hong Kong’s regulatory clarity poised to drive growth. The market’s trajectory will depend on global coordination and trust in issuers like Tether and Circle.
