Stablecoin operator APACX: Southeast Asia Stablecoin Market Report for the first half of 2025

This article is from a submission and does not represent the views of ChainCatcher, nor does it constitute any investment advice.

Author: APACX Research Institute

Executive Summary

The global stablecoin ecosystem is transitioning from localized experimentation to systematic reconstruction, marking a rapid embedding of a new value transfer and financial coordination mechanism into the mainstream economic operating structure. It not only establishes an irreplaceable role in clearing and storing value within the digital asset system but also builds a universal intermediary bridge between on-chain and off-chain, becoming an organic extension of traditional financial infrastructure.

At the current stage, the evolution of stablecoins is characterized by two major trends: first, a transformation from technical products to institutional interfaces, with more countries and institutions beginning to promote the compliant development of stablecoins under clearly defined regulatory boundaries and financial nesting rules; second, an expansion from singular functions to multidimensional integration, as stablecoins have deeply integrated into multiple scenarios such as payments, remittances, asset management, and smart contract execution, becoming programmable value units in financial activities.

Meanwhile, the usage logic in Southeast Asia shows a clear path of "decentralization - scenario-driven - foundational substitution," where stablecoins drive institutional evolution by meeting individual needs. Practices in these markets demonstrate that stablecoins have the capability to operate independently of traditional systems, constructing a financial complementation mechanism that spans borders, platforms, and systems.

From a global perspective, stablecoins are no longer merely innovative tools on the fringes of digital finance but are rapidly evolving into key variables in the international financial order. Their institutional integration paths, governance structures, and circulation logic will profoundly influence the future shape and sovereign architecture of the global value internet. Those who can build a more adaptable, transparent, and interoperable stablecoin system will take the lead in the new round of digital financial competition.

1. Review of the Global Stablecoin Market in the First Half of 2025

1.1 Market Size and Growth Trends

In the first half of 2025, the global stablecoin market exhibited significant growth, with market capitalization rising from approximately $200 billion at the end of 2024 to around $243 billion, an overall increase of over 20%. This growth trend is reflected not only in the continuous expansion of the market capitalization of leading stablecoins but also in the deepening usage density of stablecoins in actual payments, settlements, and decentralized finance.

The growth of the stablecoin market remains concentrated in the two major projects, USDT and USDC, but their development paths are significantly diverging. USDT continues to serve as the "trading layer infrastructure," dominating global exchanges, OTC scenarios, and high-liquidity markets, especially in Asia, emerging markets, and countries with tight USD liquidity, where it is widely used as a substitute for the dollar. Its massive market capitalization and deep liquidity make it the default settlement medium for most crypto transactions.

In contrast, USDC is increasingly becoming the preferred choice for "clearing and enterprise-side interfaces." It has natural advantages in audit transparency, fiat reserve mechanisms, and regulatory alignment, establishing a compliant payment closed loop through deep integration with payment networks like Visa, Stripe, and Apple Pay. At the same time, USDC is actively expanding multi-chain deployments, rapidly occupying high-performance networks such as Solana, Polygon, and Base, and achieving faster implementation in enterprise payments, off-chain settlements, and Web2 scenarios. It can be said that USDT represents "circulation efficiency first," while USDC focuses on "compliance and financial embedding." The divergence in application directions, user groups, and strategic paths between the two is jointly supporting the dual-core structure of the stablecoin market.

Meanwhile, decentralized stablecoins are also undergoing self-reconstruction. USDS (formerly DAI upgrade) demonstrates strategic continuity in governance mechanisms and modular design, while emerging mechanism projects like USDe focus on yield scenarios and liquidity integration. Although the overall scale of these projects remains limited, they structurally provide more experimental paths for the DeFi ecosystem. USD1 quickly gains circulation through digital neutrality and cross-chain layout, reflecting the market's structural demand for "non-platform stablecoins"; while platform tokens like FDUSD have exposed ecological dependency risks after facing reserve doubts, leading to a pullback in both market capitalization and trading momentum.

Overall, the stablecoin market is shifting from volume competition to structural differentiation and functional layout. Leading projects are continuously advancing into payment settlements, enterprise accounts, and off-chain integration, mid-tier projects focus on DeFi structural optimization, and emerging projects explore breakthroughs in institutions and narratives. This pattern is laying the foundation for the strategic position of stablecoins in the global payment system. With further integration of clearing networks, payment tracks, and on-chain smart contract systems, the second half of 2025 may usher in a "functional integration phase": stablecoins will become the intermediary layer between the digital asset ecosystem and traditional finance, occupying a strategic position in retail payments, trade financing, B2B circulation, and digital identity binding.

Table 1: Changes in Market Capitalization of Major Stablecoins in the First Half of 2025

Table 2: Global Major Stablecoin Market Capitalization Share (as of the end of Q2 2025)

1.2 Major Global Developments

In the first half of 2025, stablecoins continued to advance institutionalization and infrastructure integration globally, revealing four core trends: regulatory clarity, payment system integration, cross-border clearing pilots, and mainstream platform access. These developments collectively push stablecoins from being crypto financial tools to an intermediary role in the mainstream financial system.

On the regulatory front, several major economies (U.S., EU, Japan, Singapore, Hong Kong, etc.) have clarified the legal boundaries of stablecoins, issuing or implementing formal frameworks involving reserve compliance, audit mechanisms, issuance licenses, and transparency requirements. A global consensus is forming: stablecoins should possess regulatory compliance, certainty of funding support, and compliant pathways to access traditional financial systems. The regulatory focus is gradually shifting from "risk prevention" to "rule design," providing institutional space for compliant issuance and use of stablecoins.

The use of stablecoins in cross-border payments and clearing scenarios continues to grow. Stablecoins have been widely embedded in personal remittances, platform settlements, and international micropayment scenarios. With low costs, high accessibility, and programmability, stablecoins are becoming effective tools for replacing traditional cross-border transfers in specific markets, gradually shifting from asset allocation means to regular capital circulation and trading media.

Mainstream fintech companies continue to incorporate stablecoins into their product systems. Visa, Stripe, PayPal, and others have opened stablecoin settlement functions, covering multiple public chains and various account types, allowing enterprise users to directly make payments and settlements using USDC, among others. This marks that stablecoins are no longer just "on-chain assets," but are being embedded into real business processes and financial systems.

Underlying market infrastructure is also evolving in parallel. Stablecoins are becoming core asset types in smart wallets, on-chain account systems, and modular payment interfaces. Infrastructure providers are launching automatic settlement APIs, risk control modules, and enterprise clearing toolkits, making it easier to deploy stablecoins in traditional ERP, cross-border settlements, and digital financial services. Meanwhile, multi-chain deployment is becoming the norm for stablecoin projects, significantly enhancing their circulation efficiency and redundancy.

In summary, the global development of stablecoins has entered a phase of "institutional integration + scenario fusion." Policy boundaries are gradually clarifying, and the technology stack is continuously modularizing, as stablecoins upgrade from "crypto asset auxiliaries" to "regulatable, clearable, and integrable financial settlement layers."

1.3 Notable Events

Explosive Growth in Stablecoin Payment Volumes Across Multiple Scenarios

The application of stablecoins continues to grow across various fields. In B2B transactions, monthly transaction volumes have increased from less than $100 million at the beginning of 2023 to over $3 billion by early 2025. In the crypto prepaid card sector, monthly transaction volumes have surged from $250 million to over $1 billion, reflecting widespread adoption in everyday payments. Meanwhile, B2C payments have also shown rapid growth, rising from $50 million per month to over $300 million. Additionally, the demand for prepaid funds and cross-border payments continues to grow, driving steady expansion of related lending services. These trends indicate that stablecoins are becoming increasingly important in the global financial ecosystem, serving as essential tools for daily transactions for businesses and consumers alike.

Major Banks Launch Stablecoin and Deposit Token Pilots

Following the clarification of federal legislation in the United States, several financial giants, including JPMorgan, Citigroup, and Bank of America, have begun to lay out plans for digital deposit tokens and stablecoin products. JPMorgan is testing a deposit token named "JPMD," which is planned to operate on the Base chain and is open to institutional clients; Citi is also exploring the issuance of its own stablecoin; and the CEO of Bank of America stated that they are "actively evaluating and waiting for legal clarity." This trend indicates that traditional banks are shifting from a spectator role to active practitioners, promoting the application of stablecoins and integrating them into international payment and cross-border clearing systems, marking a profound transformation in the financial industry.

Expert Perspective | Cobo Interprets Key Issues of Stablecoins Q: The current stablecoin market is transitioning from a single market capitalization competition to a diversified functional division. Is this differentiation a result of short-term adaptation, or is it the starting point for the long-term structural evolution of the global value internet? A: The current stablecoin market is moving from a single "market cap competition" phase to a more functionally divided structure. This is not only a short-term adaptation to different regulatory and technical environments but also signifies a long-term restructuring of the global value internet. The differences in usage scenarios for individual users, institutions, and policymakers are gradually pushing stablecoins from a single asset to diversified tools—some serve as inflation hedges and cross-border remittance tools, such as in emerging markets in the Global South, while others emphasize treasury management and settlement efficiency, like institutions and enterprises in mature markets. In the long run, the overarching trend is a shift in the financial system from "geographic arbitrage" to "temporal arbitrage." On-chain assets have reduced cross-border friction, significantly compressing the "in transit" time for funds, thereby releasing higher capital efficiency. This high-speed finance is pushing more resources toward the construction of underlying infrastructure, prompting traditional participants to reconfigure products and roles. Ultimately, different forms of stablecoins will coexist under interoperability agreements, forming a modular and interconnected global financial network.

2. Overview of the Southeast Asian Market and Application Trends

2.1 Regional Adoption Patterns

In the first half of 2025, the Southeast Asian stablecoin ecosystem exhibited a pattern characterized by "driven by remittance demand, anchored by USD-denominated assets, and integrated with local applications." Among these, Vietnam, the Philippines, and Indonesia constitute the three markets with the highest usage intensity, while Thailand and Singapore represent the forefront of policy friendliness and institutional integration. Overall, the region is transitioning from the "circulation of crypto assets" phase to the "construction of stablecoin infrastructure" phase, forming significant inter-country application differences and positioning divisions.

Singapore: Centered on Stablecoins, Connecting Cross-Border Clearing, Daily Consumption, and Digital Asset Allocation

Singapore is promoting the application of stablecoins from enterprise cross-border clearing to retail and tourism daily scenarios. USDC and XSGD have been widely integrated into enterprise APIs and payment systems, becoming the underlying tools for fund circulation between enterprises; at the same time, local merchants like Metro Department Store are also accepting stablecoin payments such as USDT and USDC through Dtcpay, providing users with a convenient and barrier-free consumption experience. The new stablecoin model represented by USDG is exploring the combination of yield redistribution and global availability within Singapore's compliance framework, expanding its practical uses in payments and fund utilization. Overall, Singapore is driving stablecoins from payment media to multi-scenario integrated financial infrastructure.

Hong Kong: Stablecoins Widely Adopted by Exporters and OTC Markets, Forming Settlement Channels Outside the HKD System

In Hong Kong, stablecoins are gradually becoming commonly used dollar substitutes for export enterprises and individual users. As more overseas clients pay for orders using USDT or USDC, local small and medium-sized exporters are increasingly turning to stablecoins for settlements to avoid delays and costs associated with bank transfers. Since 2021, the trading volume of USDT used by Chinese clients for trade settlements has increased fivefold, reflecting its rapid popularity in actual business. At the same time, Hong Kong has formed an OTC network consisting of over 200 physical stores and more than 250 online service providers, many of which are equipped with professional counters, multilingual services, and real-time quotation systems, supporting users in exchanging or redeeming stablecoins for cash. Stablecoins have become a key medium in cross-border trade and asset circulation, with their systemic role continuously deepening.

Vietnam: Retail-Dominated, Parallel Development of DeFi and Grey Remittances

Vietnam has gradually formed an "informal parallel financial system" centered around USDT, where users continuously acquire and circulate stablecoins through Binance P2P, Telegram OTC groups, and other informal channels in the absence of official support and regulatory frameworks. Stablecoins are widely used for personal fund management, cross-border small transfers, freelancer income settlements, and asset preservation, becoming a key medium in Vietnam's daily financial activities. Data shows that in the first half of 2025, approximately 7.8% of international remittances in Vietnam were completed using stablecoins; at the same time, USDT has maintained a long-term premium of 3%-5% in the local trading market, fully reflecting its hedging and value-preserving functions in an environment of capital flow restrictions and exchange rate fluctuations.

Philippines: Mature Payment Applications, Deep Integration of Remittance Ecosystem and Wallets

The Philippines boasts the most diverse e-wallet ecosystem in Southeast Asia, with several mainstream platforms accelerating the integration of stablecoin and cryptocurrency functions, promoting the formation of a local crypto financial network centered around wallets. Among them, GCash has officially integrated USDC, enabling users to conveniently recharge and make payments with stablecoins, marking the beginning of stablecoins embedding into local mainstream financial infrastructure. Grab has also announced partnerships with payment service providers Triple-A and local platform PDAX to launch cryptocurrency recharge services in the Philippines, allowing users to recharge their GrabPay wallets using various crypto assets. These platforms are pioneering the integration of crypto channels with fiat payment networks, laying the groundwork for the deployment of stablecoins in remittances, consumption, and income settlements in the Philippines.

Indonesia: Accelerated Transformation from Hedging Tool to High-Frequency Payment Asset

According to data from Indonesia's Commodity Futures Trading Regulatory Agency (Bappebti), over 60% of crypto investors are aged between 18 and 30, with those aged 18-24 accounting for 26.9% and those aged 25-30 accounting for 35.1%. As young users become the market's main force, the use of stablecoins has significantly increased. As an asset anchored to fiat currency with low volatility, stablecoins are widely used during periods of local currency depreciation or exchange rate fluctuations for risk hedging, serving as important tools for capital preservation and portfolio diversification. Usage in certain regions also shows geographic characteristics, such as Bali, which has become an active trading area due to the concentration of digital nomads and improved infrastructure, where stablecoins were once used for offline payments but were later banned as a trading medium due to policy restrictions.

Thailand: Emergence of Cross-Border and Tourism Scenarios, Accelerated Penetration of Stablecoins as Settlement Tools

Thailand is one of the regions with the most favorable regulations for digital assets. In 2024, Siam Commercial Bank in Thailand launched a cross-border remittance service based on stablecoins; a report cited by Tether indicated that USDT is the most widely used stablecoin in Thailand, accounting for 40% of total trading volume in crypto assets; Circle has also previously conducted local trading activities with Thailand's largest compliant exchange, Bitkub; some high-end hotels in certain areas have accepted USDT and USDC payments; and there are many informal OTC merchants. Although a nationwide payment network has not yet formed, the trend of stablecoins as efficient dollar substitutes is gradually emerging in export-oriented industries. The recent "crypto payment sandbox" pilot will further expand the application scenarios for tourists to exchange digital assets for digital baht and make payments via QR codes.

Malaysia: Crypto Assets Entering Mainstream View, Stablecoins as Entry Assets for Investment and Value Preservation

User awareness and usage of crypto assets in Malaysia have significantly increased over the past five years, with stablecoins gradually evolving from purely transactional media to primary tools for local users for asset allocation and short-term value preservation. By the end of 2024, the national cryptocurrency holding rate had reached 60%, and a study of 198 Malaysian users indicated that they have a high level of awareness and acceptance of stablecoins, with a gradually established usage base. In scenarios such as payments, hedging, and asset allocation, users generally believe that stablecoins can effectively counteract volatility in the crypto market, enhancing transaction stability and convenience. Respondents' trust in stablecoins, frequency of use, and market confidence are significantly correlated with their willingness to adopt them, reflecting a relatively positive adoption trend and indicating that stablecoins have a realistic and feasible application soil in Malaysia.

2.2 Emerging Local Stablecoins

Although USD-backed stablecoins like USDT and USDC dominate globally, there is a growing trend in Asia to develop stablecoins pegged to local currencies to enhance monetary sovereignty and reduce dependence on the dollar.

Singapore: StraitsX's XSGD is a representative stablecoin pegged to the Singapore dollar. As of mid-2025, XSGD has a market capitalization of approximately $11 million, with cumulative trading volume exceeding $8 billion, supporting multiple chains such as Ethereum, Polygon, Arbitrum, and XRPL. XSGD is regulated by the Monetary Authority of Singapore (MAS) and complies with the requirements of the Payment Services Act, ensuring high compliance within the region. StraitsX is also collaborating with institutions like Grab and Ant International for cross-border payment cooperation, promoting the practical application of XSGD in enterprise settlements and retail scenarios.

Vietnam: VNDC is the main local stablecoin in Vietnam, backed by USDT reserves, with a market capitalization of approximately $3.32 million and monthly trading volume exceeding $10 million, primarily circulating on the associated platform ONUS, serving as a pricing and clearing benchmark for crypto assets like ETH and BTC. Although it has not integrated into mainstream DeFi, it has formed a stable usage closed loop based on a closed system locally.

Philippines: Currently, there are three main local stablecoins in the Philippines: PHT, PHPC, and PHPX. PHT is incubated by APACX and deployed on Ethereum, Polygon, and Tron networks, focusing on local currency exchange, digital payments, and lightweight financial scenarios, currently leading in deployment and application. In contrast, the other two are still in early stages: PHPC was launched by Coins.ph, deployed on Polygon and Ronin networks, having completed central bank regulatory sandbox testing but not yet fully circulated; PHPX is jointly issued by banks such as UnionBank and RCBC, operating on the Hedera network, currently still in the pilot phase, mainly used for interbank settlements and compliant cross-border transactions.

PHT is a Philippine peso-pegged stablecoin incubated by APACX, issued using an over-collateralization mechanism, and has been deployed on the three major public chains: Ethereum, Tron, and Polygon. Its current market capitalization is approximately $5 million, with an average monthly trading volume exceeding $1 million, widely used in OTC trading, cross-border remittances, user wallets, merchant acquiring, and crypto card issuance. It has established strategic partnerships with local and regional institutions such as Moneybees, Juancash, and StraitsX, promoting deep integration of stablecoins in fiat redemption, payment clearing, and on-chain circulation.

Indonesia: Currently, there are two main local stablecoins in Indonesia: IDRT and XIDR. IDRT is issued by Rupiah Token, deployed on Ethereum and BNB Chain, with a market capitalization of approximately $1.7 million, mainly used for local exchange and recharge on exchanges. XIDR, launched by StraitsX, has a market capitalization of approximately $130,000, focusing on compliant cross-border payments and DeFi scenarios, supporting chains like Ethereum and Polygon. Both are pegged to the Indonesian rupiah but differ in usage paths and ecological integration directions.

Malaysia: MYRC, launched by BLOX, is a stablecoin pegged to the Malaysian ringgit, using a 1:1 fiat reserve mechanism. As of mid-2025, MYRC has a market capitalization of approximately $730,000 and has been deployed on Ethereum and Arbitrum networks, currently in the beta launch phase and has not yet achieved large-scale application.

Thailand: There are currently no Thai baht stablecoins publicly circulating in the mainstream market. SCB and its subsidiary SCB 10X launched a pilot stablecoin THBX in 2024 and tested it in the central bank's regulatory sandbox. The project was showcased at Devcon, allowing users to exchange USDC for THBX for on-site consumption through the "Rubie" wallet. However, since 2025, there have been no further developments in the project, and the commercialization path remains unclear.

Expert Perspective | Cobo Interprets Key Issues of Stablecoins Q: As stablecoins begin to deeply embed into daily processes such as payments, remittances, and asset transfers, are they becoming "underlying substitutes" in the financial systems of certain Southeast Asian countries, rather than mere supplements? A: Whether stablecoins are "supplements" or "substitutes" depends on the specific circumstances of the local financial system. In some Southeast Asian countries with unstable local currencies and weak banking systems, stablecoins are quietly becoming underlying financial tools. For example, USD stablecoins (USDT, USDC) are beginning to take on daily capital flows such as remittances, payroll, and cross-border settlements, with these funds no longer going through local banks but being completed directly through on-chain wallets. The reason is simple: traditional systems are too expensive and slow, and local currencies are unstable, making stablecoins more like a bottom-up alternative to the dollar. Conversely, in markets like Singapore, where the financial system is robust and regulation is clear, stablecoins are more of an efficiency tool, not intended to replace the local financial system. In such countries, stablecoins and the banking system have a cooperative relationship, used to enhance cross-border clearing efficiency rather than disrupt the existing order.

3. Regulatory Trends and Key Milestones for Stablecoins in Southeast Asia

In the first half of 2025, Southeast Asia entered a substantial phase in stablecoin regulation, with multiple countries completing institutional drafts, pilot advancements, or regulatory implementations, showing a trend of transitioning from "policy ambiguity" to "scenario-oriented regulation."

Table 3: Major Regulatory Milestones in Southeast Asia in the First Half of 2025

3.1 Clear Involvement

Singapore: Incorporating Bank Capital Regulation, Strengthening Stablecoin Compliance Standards

The Monetary Authority of Singapore (MAS) released the "Stablecoin Regulatory Framework" in August 2023, applicable to single currency stablecoins (SCS) pegged to the Singapore dollar or G10 currencies and incorporated into the regulatory system as a supplementary clause to the Payment Services Act.

Building on this, MAS published a new round of consultation documents in March 2025 titled "Consultation on the Prudential Treatment of Cryptoassets and Requirements for AT1 and T2 Capital Instruments," which for the first time proposed prudential capital regulatory requirements for banks holding stablecoins and set more specific standards for the quality, safety, and legal structure of stablecoins. This new proposal mainly targets stablecoin assets classified as Group 1b, which are those pegged to fiat currencies, possess redemption mechanisms, and are verified by authorities. Specific requirements include:

• Redemption mechanism requirements: Banks must be able to redeem stablecoins at face value from the issuer or its authorized agents, and the redemption process must be legally enforceable. Banks must reassess redemption capabilities before purchase, every six months, and during market fluctuations.
• Reserve asset standards: Stablecoins must be fully backed by high-quality, low-risk assets, such as sovereign debt, central bank deposits, or bank deposits rated A- or above. The average remaining maturity must not exceed three months, and reserve assets must be held by independent third parties.
• Price peg stability testing: Banks must regularly verify whether the stablecoin's price remains closely linked to the reference currency, using statistical methods (e.g., the frequency of price deviation from face value exceeding 0.5% within 30 days must not exceed 10%) or governance judgment. Test results must be documented for audit and regulatory verification.
• Legal structure requirements: Banks must directly hold rights or assets behind the stablecoins or obtain creditor rights to reserves through clear legal structures. Indirect holdings of underlying assets through complex, opaque SPVs are not permitted.
• Due diligence obligations: Banks have a continuous due diligence responsibility regarding the issuer's governance structure, redemption capabilities, custody arrangements, and reserve composition. If a stablecoin no longer meets the above conditions, it must be immediately reclassified as a high-risk (Group 2) asset and subject to higher capital requirements.

MAS explicitly stated that it will localize the implementation of stablecoins based on the Basel Committee on Banking Supervision (BCBS) standards for the capital treatment of crypto assets and is seeking public feedback on the proposal. Once implemented, this framework will make Singapore one of the few jurisdictions globally to incorporate stablecoins into the banking capital regulatory system.

Hong Kong: Establishing Comprehensive Stablecoin Regulations Centered on Licensing Systems

On May 21, 2025, the Hong Kong Legislative Council passed the "Stablecoin Bill," establishing the first stablecoin regulatory framework centered on a licensing system, which will officially take effect on August 1, 2025. The regulation will be enforced by the Hong Kong Monetary Authority and applies to local and overseas issuers engaging in stablecoin-related activities within Hong Kong or targeting the Hong Kong public.

The regulation defines "designated stablecoins" as virtual assets pegged to one or more fiat currencies, aimed at maintaining that peg. Individuals or entities involved in any of the following five activities must obtain a license from the Monetary Authority to operate legally:

1. Issuing or minting stablecoins;
2. Redeeming or destroying stablecoins;
3. Managing their reserve assets;
4. Providing stablecoin wallet services (including custody);
5. Promoting or marketing stablecoins.

The regulation requires licensed entities to continuously meet the following compliance obligations:

• Redemption mechanism requirements: Licensees must ensure that users can redeem fiat currency from the issuer at the stablecoin's nominal value, with redemptions to be completed as soon as possible, at reasonable costs, and without imposing undue conditions. Unless written consent is obtained from the Monetary Authority, redemptions cannot be suspended or refused.
• Reserve asset standards: The total circulation of stablecoins must be fully backed by equivalent fiat currency assets, with reserve assets required to be of high quality and liquidity, and separated from operating funds, held by independent third parties.
• Risk management requirements: Licensees must establish robust internal control mechanisms and risk management policies, including reserve asset management systems, liquidity monitoring, stress testing, and emergency response processes, to ensure redemption capabilities under various market conditions.
• Audit and information disclosure requirements: Licensees must engage independent auditors to regularly verify reserve assets and related financial conditions, and disclose information to the public regarding reserve composition, custody arrangements, redemption capabilities, risk assessment policies, and governance arrangements.
• Cross-border applicability mechanism: Even if the stablecoin issuer does not establish an operational base in Hong Kong, as long as it provides services to the Hong Kong public or poses potential risks to Hong Kong's financial stability, the Monetary Authority can designate it as a "designated entity," requiring it to apply for a license and accept local regulation.
• Enforcement and legal responsibilities: Individuals or entities engaging in stablecoin activities without a license, failing to fulfill redemption obligations, disseminating misleading information, or obstructing regulatory investigations will constitute a criminal offense, subject to fines, business suspension, or imprisonment; the Monetary Authority also has the authority to take regulatory actions such as investigations, restrictions, and license revocations.

Currently, over 40 institutions have expressed interest in applying for a stablecoin license in Hong Kong, among which the Standard Chartered/Animoca/HKT alliance, JD Coinlink, and RD InnoTech have been selected for the Monetary Authority's regulatory sandbox at the end of 2024 and have begun preliminary engagements, gaining a first-mover advantage. The Monetary Authority has indicated that formal licensing will be highly cautious, approving only a limited number of applicants with high compliance, clear use cases, and sound risk controls.

Thailand: USDT and USDC Legally Tradable, Sandbox Exploring Local Currency Pegged Applications

On March 6, 2025, the Thai Securities and Exchange Commission (SEC) issued an announcement (Sor Jor. 9/2568), including USDT and USDC in the list of digital assets that can be used as trading benchmarks. This amendment allows the two mainstream USD stablecoins to be used as trading pairs in local regulated digital asset exchanges, effective from March 16. This change marks the first time stablecoins have been included in Thailand's regulated trading market, signifying institutional recognition of their trading functionality in the local market.

Additionally, the Bank of Thailand (BOT) is advancing the "Programmable Payments Sandbox," allowing enterprises to test financial innovation scenarios, including on-chain payments and automatic clearing, in a controlled environment. According to the BOT's official website, this mechanism requires projects to use electronic data units pegged to the Thai baht with a 1:1 reserve mechanism, capable of executing conditions automatically through distributed ledger technology (DLT) and smart contracts, structurally resembling stablecoins pegged to local currencies, although the policy does not directly use the term "stablecoin."

The first testing project to enter this sandbox was launched by SCB 10X, completing the first phase of testing in May 2024, with the second phase expected to start in the third quarter of 2025. SCB 10X is the innovation and venture capital subsidiary of Thailand's Siam Commercial Bank (SCB), focusing on exploring blockchain, Web3, and fintech applications.

According to information released by the central bank, most other testing projects will gradually launch in the second half of 2025, with participating institutions including Bank of Ayudhya, Kasikornbank, Bitkub, True Money, OM Platform, etc., covering testing content such as asset tokenization payments, custody payments, global stablecoin exchange services, and B2B digital loans, with testing periods expected to extend into 2026.

Malaysia: Clarifying Financial Attributes, Stablecoins Under Central Bank Regulatory Focus

In the consultation paper titled "Regulatory Framework Proposal for Tokenized Capital Market Products" (Consultation Paper No. 1/2025) released in May 2025, the Malaysian Securities Commission (SC) explicitly proposed regulating "digital twin tokens," which are structures for issuing traditional capital market products (such as bonds and funds) in tokenized form on-chain. This framework emphasizes a technology-neutral principle and is limited to legally supported securities-type assets off-chain, not applicable to "native on-chain assets" such as cryptocurrencies and stablecoins. However, it is noteworthy that the requirements for custody, on-chain and off-chain information consistency, and technology risk control mentioned in the document closely align with the design logic of interest-bearing stablecoins. Although not explicitly included in the applicable scope, it may still be referenced for technical and governance adaptations in the future.

On June 17, 2025, at the Sasana Symposium 2025, Prime Minister Anwar Ibrahim announced the establishment of the Digital Asset Innovation Hub, led by Bank Negara Malaysia, as a platform to support financial innovation. According to official statements, the center aims to provide a "controlled environment" for financial technology participants to experiment with new concepts and provide feedback for regulatory design. Although the press release did not directly mention stablecoins, it clearly stated that the platform could support the exploration of asset digitization and financial technology innovation directions. This means that projects like stablecoins can apply for pilots under this mechanism, with regulatory boundaries and compliance mechanisms assessed based on project types and uses.

On June 30, 2025, the SC released the "Revised Consultation Paper on Recognized Market Guidelines—Digital Asset Exchanges" (Consultation Paper No. 3/2025), introducing a more open digital asset listing mechanism for local digital asset exchanges (DIGITAL ASSET EXCHANGE). In the section assessing high-risk assets, the document explicitly mentions "stablecoins" as an independent category, noting that although they claim to be pegged to assets and stable in value, their stability mechanisms are often controlled by the issuer, which may pose financial stability risks. The document particularly emphasizes that the systemic impact of stablecoins is "within the regulatory authority of Bank Negara Malaysia." This indicates that regulators have differentiated stablecoins from general crypto assets, clarifying their financial instrument attributes and placing regulatory authority under the central bank.

3.2 Indirect Coverage

Philippines: First Definition of Crypto Assets, Establishing CASP Regulatory Framework

In May 2025, the Philippine Securities and Exchange Commission officially released the "Crypto Asset Service Provider Rules" (MC No. 4) and the "Crypto Asset Service Provider Operating Guidelines" (MC No. 5).

The term "Crypto-Asset" was explicitly defined for the first time by Philippine regulators in these rules, defined as: "A form of digital value or rights secured by cryptographic technology, verified through distributed ledger or similar technology, and can be transferred, stored, or traded electronically."

Institutions providing services for the issuance, trading, matching, advising, or marketing of crypto assets in the Philippines must apply for registration as Crypto Asset Service Providers (CASP) and are subject to SEC regulation. If the asset possesses securities attributes, it must also complete registration under the Securities Regulation Code, submit a securities registration statement, and fully disclose information to investors before issuance, complying with anti-money laundering and other relevant regulations.

Stablecoins, as a common form of crypto assets, typically meet the above definition, and relevant service providers must fulfill CASP registration and operational compliance obligations. Furthermore, if the design of a stablecoin includes yield distribution, asset appreciation expectations, or governance rights, it may also be classified by the SEC as "crypto asset securities," thus subjecting it to stricter securities regulatory requirements.

Specifically, institutions engaging in crypto asset services intending to provide related services to the public in the Philippines must apply for CASP registration as a local legal entity, establish a physical office, possess a paid-up capital of no less than ₱100,000,000, submit detailed business plans, risk disclosures, and IT security architecture descriptions, and fulfill various compliance obligations during operations.

While the SEC establishes a registration and compliance system, the Bangko Sentral ng Pilipinas (BSP) is also promoting the practical testing of crypto asset innovation projects through a "regulatory sandbox" mechanism. In 2024, the local platform Coins.ph's Philippine peso-pegged asset PHPC was approved to enter sandbox testing, and in June 2025, after meeting redemption capabilities, system security, and compliance requirements, it officially exited, becoming the first locally pegged digital asset to enter public market circulation with BSP approval.

Indonesia: OJK Takes Over Regulatory Functions, Continues to Assess and Review Crypto Assets

On January 10, 2025, Indonesia officially completed the transfer of crypto asset regulatory functions, with the Financial Services Authority (OJK) taking over from the Commodity Futures Trading Regulatory Agency (Bappebti), fully responsible for the regulation of crypto assets and securities derivatives. This transition is based on the implementation of the "Law No. 4 of 2023" (Comprehensive Financial Sector Law) and is clearly established through the "Transfer of Regulatory Responsibilities for Digital Financial Assets (Including Crypto Assets) and Financial Derivatives" (Government Regulation No. 49 of 2024) and the "Regulations on Digital Financial Assets (Including Crypto Assets) Trading" (OJK Regulation No. 27 of 2024), marking the beginning of a new era of digital financial regulation in Indonesia.

Although stablecoins are not directly mentioned in the relevant regulations, the OJK regulation includes "asset-backed crypto assets" within its regulatory scope, covering the core characteristics of stablecoins. Therefore, stablecoins, as a type of asset-backed crypto asset, should be included in the applicable regulatory framework.

The regulation states that if a crypto asset wishes to be legally traded in Indonesia, it must be included in the official "crypto asset list" and undergo corresponding assessments: the asset to be launched must possess on-chain transparency, asset support mechanisms, and issuer information disclosure.

Simultaneously, exchanges must evaluate trading assets based on market capitalization, liquidity, legal compliance, and other indicators, updating the asset list quarterly. The OJK reserves the right to intervene in trading assets, including suspending, delisting, and issuing forced liquidation orders. Although these provisions are not specifically targeting stablecoins, they will apply if stablecoins present risks or non-compliance.

All institutions providing crypto asset trading, custody, and clearing services must obtain OJK licenses and meet comprehensive standards for governance, anti-money laundering, system security, and investor protection. Directors, executives, and controlling shareholders of newly established institutions must pass suitability assessments.

According to the new OJK regulations, all licensed crypto asset exchanges must complete asset re-evaluations and list updates within three months (by April 2025). If stablecoins are included in the list, they will also face re-evaluation and ongoing compliance obligations regarding their support mechanisms.

Vietnam: Release of the "Digital Technology Industry Law," Stablecoins May Be Classified as Tokenized Assets

On March 1, 2025, the Prime Minister signed Directive No. 05/CT-TTg, instructing the Ministry of Finance and the State Bank to lead the development of regulatory schemes for digital assets and digital currencies, with a preliminary framework to be submitted to the government within the month. The directive does not specifically list cryptocurrencies like Bitcoin, but it marks the transition of crypto asset regulation from an administrative control phase to a legal preparation phase.

On June 14, the Vietnamese National Assembly officially passed the "Digital Technology Industry Law," which for the first time defines "digital assets" and distinguishes their internal types. According to the legal text, digital assets are defined as assets that exist in the form of digital codes, can be owned, controlled, and traded by organizations or individuals, and are subdivided into "virtual assets" and "tokenized assets."

Among them, virtual assets refer to assets that are not pegged to any real value and are entirely generated based on digital systems, broadly encompassing the mainstream forms of existing cryptocurrencies. Tokenized assets refer to digital assets formed by mapping real assets through coding, applicable in areas such as real estate, debt, and commodities.

From a formal and technical perspective, stablecoins share high similarities with "tokenized assets." There is a significant possibility that they will be included in this regulatory category. At the same time, the law explicitly excludes fiat currencies, central bank digital currencies (CBDCs), securities, and other financial assets regulated by financial regulations, indicating that its regulatory focus is on digital asset forms outside the traditional financial system.

The "Digital Technology Industry Law" also establishes a "regulatory sandbox" mechanism for piloting new digital technologies and financial products. Although the law does not directly mention stablecoins, the sandbox mechanism may provide a pilot channel for stablecoins in limited applications such as cross-border payments and tourism scenarios.

The introduction of this regulation signifies that Vietnam is incorporating blockchain into its national strategic technology, but specific regulatory rules such as licensing systems, compliance declarations, and anti-money laundering measures still await the issuance of more detailed supporting policies by financial regulatory agencies (such as the State Bank of Vietnam, Ministry of Finance, and Securities Commission).

Expert Perspective | Cobo Interprets Key Issues of Stablecoins Q: The regulatory paths in Southeast Asia are rapidly diverging: some countries emphasize licensing and strict regulation, while others have yet to clearly define stablecoins. Will this regulatory asymmetry lead to a situation of "role fragmentation" and "value positioning confusion" for stablecoins in the region? A: Southeast Asia, led by countries like Singapore, Vietnam, Malaysia, and Thailand, has been improving regulations and laws for cryptocurrencies, with a basic direction of strict compliance, including in KYC, anti-money laundering, and anti-terrorist financing, aligning with global mainstream trends. Although the pace varies among different countries, overall, the depth of stablecoin adoption cannot be separated from the level of financial development in each country, and these major countries also play a dominant role in the economies of Southeast Asia, thus having a decisive influence on the future adoption of stablecoins.

4. Challenges and Opportunities for Stablecoin Implementation in Southeast Asia

4.1 Opportunities

Regulatory Frameworks Becoming Clear, Opening Entry for Compliant Projects

In 2025, the stablecoin regulations in major Southeast Asian countries are gradually clarifying, shifting from observation to cautious acceptance. Singapore and Hong Kong are leading the way in establishing clear frameworks, with Singapore incorporating stablecoins into the banking capital regulatory system and Hong Kong setting formal regulatory pathways through licensing systems and cross-border applicability mechanisms. Although countries like the Philippines, Indonesia, and Malaysia have not enacted specific laws, they have included stablecoins within the regulatory scope of crypto assets or financial products, promoting compliant pilots through sandbox mechanisms and exchange reviews.

Significant Local Payment Pain Points, Stablecoins Have Structural Substitution Space

In countries like the Philippines, Thailand, and Vietnam, there are widespread structural issues such as poor international circulation of fiat currencies, high cross-border remittance costs, and weak retail payment infrastructure. Stablecoins can bypass intermediary clearing systems, directly achieving on-chain transfers and instant settlements, significantly compressing transaction times and fees. For example, in the labor remittance scenario in the Philippines, USDT has become a widely used alternative channel, and local currency stablecoins can also enter this real demand scenario through compliant pathways, solving the last-mile problem that traditional finance struggles to cover.

Locally Driven Stablecoin Projects Accelerating Pilot Implementation

Unlike previous stablecoin issuances led by external technical teams, from 2025 onwards, an increasing number of stablecoin projects are being led by local banks, licensed exchanges, or fintech companies. For instance, the programmable payment project based on the Thai baht promoted by SCB 10X has inherent advantages in connecting with local compliance systems and is more likely to gain government trust. This indicates that stablecoins are transitioning from "DeFi tools" to "local financial infrastructure," with the potential to become digital payment standards.

Mature Interoperability Technology Paths, Continuously Expanding Usage Scenarios

Cross-chain communication protocols (such as Layerzero) now support stablecoins in achieving atomic swaps and circulation across multiple chains, avoiding value fragmentation. At the same time, new-generation financial technologies such as on-chain reserve proof, automatic auditing, and custody visualization enhance the compliance capabilities and on-chain transparency of stablecoins. Combined with Singapore and Thailand's explorations of "programmable payment" scenarios, stablecoins will not only be used for "transfers" but will also possess more complex business capabilities such as automatic settlements and event-triggered payments.

Stablecoins Expected to Become "Intermediate Solutions" for Local Currency Digitization

In most Southeast Asian countries that are not yet ready to promote retail CBDCs (Central Bank Digital Currencies), stablecoins issued by private institutions and pegged to local currencies have become a controllable, testable, and scalable alternative path. Stablecoins can serve as "quasi-CBDCs" for technical pilots and, due to their redemption mechanisms and market circulation capabilities, are closer to the real economy, potentially becoming a bridging tool for governments to promote local currency digitization.

Stablecoins Expected to Become Digital Bridges for Regional Currency Connectivity

As multiple countries promote the pilot and implementation of local currency-pegged stablecoins, Southeast Asia is gradually forming a prototype of a cross-border clearing network mediated by digital assets. Unlike the traditional dollar-based intermediary settlement system, stablecoins are expected to enable direct exchanges and settlements between local currencies, reducing structural costs associated with dependence on the dollar. Through stablecoin-stablecoin cross-chain exchange mechanisms, a value transmission channel for "regional local currency connectivity" can be constructed. This lays the foundation for building a more sovereign and efficient ASEAN digital payment corridor in the future, also endowing stablecoins with a strategic position that transcends single-country payment tools.

4.2 Challenges

Severe Regional Regulatory Divergence, Hindering Cross-Border Expansion

Although multiple Southeast Asian countries have begun exploring stablecoin regulation in 2025, the levels and clarity of regulation vary greatly. For example, Singapore and Hong Kong adopt strict definitions and licensing paths, while Indonesia and the Philippines cover stablecoins indirectly through broad crypto asset regulatory frameworks, and Vietnam and Malaysia are still in the stages of definition and authority delineation. This differentiation makes it difficult for stablecoin projects to cover multiple national markets simultaneously, hindering the scalability of cross-border clearing, payment, and transfer functions.

Insufficient Liquidity for Local Currency Stablecoins, Lacking Real Usage Environments

Although several local currency-pegged stablecoins have emerged, they generally lack sufficient market depth, trading pairs, and user acceptance. On one hand, users are not yet familiar with local currency digital assets; on the other hand, these stablecoins often lack high-frequency usage scenarios and on-chain supporting ecosystems, leading to their "launching into silence." In competition with widely circulated USD stablecoins like USDT and USDC, local currency stablecoins are more likely to be marginalized.

High Compliance Barriers Raising Entry Costs for Technical Teams

As regions like Hong Kong and Singapore set "100% high-quality reserves, third-party custody, redemption guarantees, and clear legal structures" as prerequisites for issuance, stablecoins are gradually becoming "quasi-financial products." For small projects lacking banking resources, legal teams, and auditing support, this means that technical capability is no longer the only barrier, nor even the primary one. Teams lacking compliance resources and capital capabilities will be excluded from the mainstream market, and the stablecoin ecosystem is gradually becoming "institutionalized."

De Facto Monopoly of USD Stablecoins, High User Switching Costs

In actual payments and transactions, USDT and USDC dominate, even serving as "de facto digital dollars" in many countries. For instance, USDT is widely circulated in the OTC markets of the Philippines, Vietnam, and Indonesia, with high acceptance among merchants and users, while local currency stablecoins face challenges of "why switch" in terms of trust and motivation. If they cannot provide significant price advantages, settlement efficiencies, or compliance necessities, local currency stablecoins will struggle to capture market share from USD-pegged products.

Incomplete Infrastructure, High User Education Costs

The promotion of stablecoins in Southeast Asia faces challenges related to weak infrastructure and high user education costs. On-chain wallets, gas fees, cross-chain bridges, and other operations are not user-friendly for the average user, while real-world deposit and withdrawal channels, merchant payment, and clearing interfaces remain underdeveloped, limiting practical application. At the same time, the public still lacks awareness of stablecoins as payment tools, requiring project teams to bear additional education and promotion costs, which poses a high barrier for resource-limited teams.

Sovereignty of Fiat Currency and Macroeconomic Policies Restricting Local Currency Stablecoin Development

In the context of stablecoins possessing quasi-currency attributes, some countries express concerns that they may erode fiat currency sovereignty and disrupt capital control mechanisms. For example, Malaysia explicitly defines stablecoins as potential tools with systemic risks, with regulation led by the central bank. This means that despite existing market demand, the political survival space for local currency stablecoins remains fraught with uncertainty.

5. Strategic Recommendations and Future Outlook

5.1 Recommendations for Enterprises

Prioritize Entry into Regulatory-Friendly Markets, Establish Compliant Model Cases

Given the varying maturity of regulations across countries, enterprises should prioritize establishing project pilots or issuing entities in countries like Hong Kong, Singapore, and the Philippines, where policy paths are clear and regulatory rhythms are predictable. Obtaining local financial licenses, participating in regulatory sandboxes, and establishing auditing and custody partnerships are foundational for gaining trust. These "first-mover models" can serve as compliance endorsements for future replication in other countries.

Design End-to-End Closed Loop Paths Around Real Transaction Scenarios

Rather than merely being a "stablecoin issuer," it is better to engage in a complete capital flow closed loop: such as "user deposit → merchant payment → on-chain clearing → fiat redemption." This requires enterprises to deploy not only token contracts but also to connect deposit channels (such as OTC, crypto wallets), B2B/B2C applications (such as e-commerce, remittance platforms), and redemption mechanisms (such as wallet withdrawals, card package linkage), thereby establishing truly usable and redeemable stablecoin trajectories.

Promote Modular Structuring of Stablecoin Products, Lower Integration Barriers

Stablecoin issuers should break down their capabilities into standardized modules for partners (such as wallets, e-commerce platforms, payment API providers): such as on-chain issuance interfaces, price anchoring tools, auditing APIs, custody inquiry modules, etc., forming a stablecoin service capability matrix. This will significantly reduce the integration costs for partners and enhance system compatibility.

Build Local Alliance Ecosystems, Collaborate with Payment Providers and Compliance Intermediaries to Promote Implementation

Enterprises should not operate independently but should actively engage local payment companies, retail platforms, crypto-fiat gateways, and banking institutions to form a "local stablecoin implementation alliance," jointly promoting merchant payments, settlement clearing, and tax compliance processes. Especially in cash-intensive countries like the Philippines and Thailand, establishing deep cooperation with offline circulation channels is key to driving real usage.

5.2 Recommendations for Regulatory Agencies

Establish a Multi-Layered Regulatory System, Guiding Stablecoin Development by Type and Phase

Regulation should avoid a one-size-fits-all approach and instead set differentiated management paths based on the stablecoin's use (e.g., payment-type, trading-type, asset-backed), the nature of the issuer (financial institutions, tech companies, DAOs), and the scope of use (local closed scenarios, open cross-border circulation). Initially, innovative projects can be included in regulatory sandboxes, with regulators monitoring testing results in real-time and gradually guiding them toward registration or licensing systems. By employing a "tolerance → verification → release" approach, technical risks and compliance costs can be dynamically managed.

Establish On-Chain Regulatory Interfaces, Strengthening Dynamic Mastery of Capital Flows and Redemption Capabilities

Given the on-chain visibility of stablecoins, it is advisable to make good use of this feature. It is recommended to require projects to open standardized data interfaces (such as reserve addresses, redemption records, circulation distribution), introduce on-chain reserve proof mechanisms, and link them with regulatory audit systems for real-time monitoring. For example, trigger mechanisms can be set so that when specific conditions arise (such as large-scale redemptions or highly concentrated holdings), automatic alerts, freezes, or restrictions on related operations can be enacted, thereby enhancing risk control.

Explore Regulatory Templates for Local Currency Stablecoins, Reserving Institutional Space for Non-CBDC Paths

In the context where most Southeast Asian countries are not yet prepared to issue retail CBDCs, compliant local currency stablecoins can serve as "intermediate forms" for pilots. It is suggested to set unified parameters (such as reserve ratios, custody requirements, daily redemption limits, maximum redemption times) and allow financial institutions to conduct small-scale issuances under regulatory authorization. Such pilots should focus on controllable scenarios such as cross-border remittances, government subsidy distributions, and digital tourism payments, establishing regulatory experience and social trust.

Promote Cross-National Regulatory Coordination Mechanisms, Reducing Policy Friction in the Region

Considering the inherent cross-border nature of stablecoins and their technological diffusibility, a single country's regulatory framework is insufficient to address all spillover effects. It is recommended to promote the establishment of multilateral collaboration mechanisms, focusing on sandbox mutual recognition, compatibility of technology and auditing standards, and wallet and node management norms to conduct regional collaboration, reducing operational and compliance friction caused by policy fragmentation. By guiding regional stablecoins to mutually recognize and connect, it will help build a more consistent and efficient cross-border digital financial environment.

5.3 Recommendations for Users

Establish Basic Understanding of Stablecoins, Clarifying Risks and Value Attributes

Users should have a basic understanding before using stablecoins: stablecoins are a type of digital asset pegged to fiat currencies, designed to maintain price stability. Compliant stablecoins typically possess real asset reserves, public audits, redemption mechanisms, and a certain degree of regulatory recognition. However, some tokens that lack reserve support or overly rely on algorithmic adjustments, while appearing stable in price, may harbor significant credit and technical risks. Users should view stablecoins as "functional assets" rather than "high-yield investments," avoiding misjudgment of their financial attributes.

Prioritize Stablecoins with Redemption and Local Usability

The value of stablecoins lies not only in their "on-chain existence" but also in whether they can complete payments, receipts, withdrawals, and other operations in daily life. Before choosing to use a particular stablecoin, users should confirm whether the asset supports local fiat deposits and withdrawals, whether it can circulate on mainstream platforms, and whether it has clear redemption paths. Stablecoins that can support "on-chain usage + local redemption" closed loops are more practically usable and asset-controllable.

Enhance Digital Wallet Usage Skills and Asset Security Awareness

The use of stablecoins typically relies on blockchain wallets, involving private key management, on-chain transactions, and contract authorizations. Users should master basic wallet usage skills, including creating and backing up mnemonic phrases, distinguishing main chains, recognizing risk authorizations, and adjusting transaction fees. At the same time, they should be wary of common security risks, such as phishing links, malicious airdrops, and counterfeit wallet plugins, to avoid asset losses due to improper operations.

Explore Practical Uses of Stablecoins in Cross-Border, Payment, and Storage Scenarios

Stablecoins can serve as efficient and secure value transfer tools, widely applied in cross-border remittances, remote payments, platform settlements, and digital goods payments. Compared to traditional payment systems, stablecoins offer advantages such as fast transfer speeds, low costs, and strong programmability. Users can gradually incorporate stablecoins into their daily payments and financial management based on their needs, enhancing transaction efficiency and asset flexibility.

Merchants and Platform Users Can Incorporate Stablecoins into Daily Operations

For merchants and platform users who need to receive payments, settle accounts, or split revenues, stablecoins can serve as a new payment channel. By combining digital wallets, aggregated payment interfaces, and exchange rate tools, merchants can achieve automatic pricing, on-chain settlements, and fund clearing processes. For e-commerce, creator platforms, and online service providers targeting international customers, stablecoins can significantly reduce cross-border settlement costs and waiting times, enhancing capital turnover efficiency.

Expert Perspective | Cobo Interprets Key Issues of Stablecoins Q: In the context of homogenization of technical paths, rising regulatory thresholds, and the local ecosystem not yet taking shape, is the competitive advantage of stablecoin projects shifting from "whether they can issue" to "whether they can build a usable, redeemable, and sustainably operating real financial closed loop"? A: We have encountered many clients who are very interested in issuing stablecoins, but often underestimate the competitive difficulty in the stablecoin market. The actual competitors of stablecoins are sovereign currencies and traditional financial services, and later entrants must compete with existing leading stablecoin players in the market. Without special policy support, financial resources, or scenario advantages, stablecoins issued by general institutions may struggle to gain sufficient user adoption. Therefore, if stablecoin issuers have their own scenario advantages or can build ecosystems with strong partners, they can truly leverage the value of stablecoins in use. In this regard, Cobo's advantage lies in that we have built a large PSP (Payment Service Provider) transfer network at the core layer, connecting exchanges and OTC merchants, and relying on our deep partnerships with banks and top market makers to achieve a combination of on-chain transfers and off-chain bank rapid settlements. For example, after completing a transfer of 1 million USDT on-chain, funds can be rapidly credited within a minute through crypto-friendly banks; the core layer is then connected to small and medium-sized PSPs and exchanges, which use the super market makers of the core layer for acceptance; further out are small merchants and retail investors. Cobo's goal is to help clients quickly increase transaction volumes through this network, leveraging our current transfer scale of three to four hundred billion dollars to provide a strong circulation network for stablecoin issuers, enabling rapid distribution of stablecoins, and connecting stablecoin issuers and clients through the Cobo wallet system. On one hand, issuers can attract users through incentive subsidies, while on the other hand, clients can provide issuers with more application scenarios, ultimately achieving mutual benefits for both parties.

6. Conclusion

As of the first half of 2025, stablecoins have established their strategic position as tools for structural transformation in the global financial system, with Southeast Asia becoming a frontier region for adoption and policy experimentation.

Despite facing challenges such as inconsistent regulatory frameworks, risks of illegal activities on-chain, and weak off-chain infrastructure, stablecoins demonstrate significant potential in enhancing financial inclusion, optimizing cross-border payment efficiency, and promoting the modernization of financial systems.

Regulatory agencies in various countries are gradually advancing the process of policy clarification through multilateral dialogues, sandbox mechanisms, and functional classification laws; at the same time, the accelerated entry of institutional investors and the emergence of stablecoins pegged to local fiat currencies are laying the groundwork for establishing a controllable, auditable, and interoperable stablecoin ecosystem in the region.

Looking ahead, strategic collaboration among policymakers, financial service providers, and technology infrastructure builders will be key to unlocking the full value of stablecoins. This is not only about the payment innovation capabilities of individual countries but also about whether Southeast Asia can build a more inclusive, efficient, and resilient regional value network within the global digital financial landscape.

About APACX

APACX is a digital financial infrastructure provider focused on Southeast Asia and other emerging markets, dedicated to creating a secure, efficient, and scalable value circulation foundation.

We break down the barriers between different markets, networks, and financial systems by building decentralized settlement and interoperability networks, enabling seamless flow of cross-border funds and digital assets, allowing institutions, platforms, and individuals to access the global value network with lower costs and higher certainty.

By integrating regional resources with global infrastructure, we provide a unified value interconnection entry point for local enterprises, cross-border e-commerce, financial institutions, and developers. As the ecological network continues to expand, we are promoting the popularization and implementation of digital finance in emerging markets, facilitating deep integration of regional economies with the global value chain.

About Cobo

Cobo is a trusted leader in digital asset custody and wallet technology, offering a one-stop wallet technology platform that enables institutions and developers to easily build, automate, and securely scale their digital asset businesses.

Founded in 2017 by blockchain pioneers and headquartered in Singapore, Cobo is trusted by over 500 leading digital asset companies, with assets under custody reaching billions of dollars. Today, Cobo provides the industry's only platform that integrates four different digital asset wallet technologies: custody wallets, MPC wallets, smart contract wallets, and exchange wallets. Cobo is committed to the highest security standards and regulatory compliance, maintaining a zero-incident record to date, and has obtained ISO 27001, SOC2 (Type 1 and Type 2) certifications, as well as licenses in multiple jurisdictions. With industry-leading innovations, Cobo has received recognition from authoritative institutions such as Hedgeweek and Global Custodian.

Cobo has now built a full-stack stablecoin infrastructure covering digital asset wallet architecture, risk control compliance, and yield modules, promoting the large-scale implementation of stablecoins in cross-border payments and institutional scenarios.