The stablecoin sector is gaining traction worldwide, driven by regulatory progress in key financial hubs and growing institutional interest. With the U.S. and Hong Kong advancing stablecoin legislation and Circle’s upcoming NYSE debut, financial markets are responding with renewed enthusiasm for blockchain-based payment infrastructure. This shift is not only reshaping investor sentiment but also spotlighting the evolving role of stablecoins in global finance.
Regulatory Milestones Fuel Market Optimism
Recent developments in stablecoin regulation have marked a turning point for digital asset acceptance. In late May, the U.S. Senate passed the Guiding Emerging National Innovation with Unique Stability Act (GENIUS Act), establishing a federal framework for regulated stablecoin issuance. Around the same time, Hong Kong’s Legislative Council approved its Stablecoin Bill, published in the Gazette on May 30, formalizing oversight mechanisms for fiat-backed digital currencies.
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These legislative moves signal a broader recognition of stablecoins as legitimate components of modern financial infrastructure. According to analysts at Huatai Securities, Li Jian and Chen Yuxuan, this marks “another milestone in crypto adoption following the approval of Bitcoin ETFs,” reinforcing confidence in the long-term viability of blockchain-integrated financial systems.
The GENIUS Act mandates that stablecoin issuers must operate as licensed financial institutions, maintain full reserves in cash or short-term U.S. Treasury securities, and undergo regular audits—provisions designed to ensure transparency and systemic stability. Similarly, Hong Kong’s new rules require issuers to hold equivalent fiat reserves and submit to regulatory scrutiny, aligning closely with international best practices.
Market Reaction: Tech and Payment Stocks Surge
As policy clarity emerges, capital has begun flowing into related equities. Between May 28 and June 5, several A-share fintech firms experienced sharp rallies. G&D Technology (002177.SZ) recorded five consecutive daily limit-ups, while Zhongke Jincain (002657.SZ), Hengbao Co. (002099.SZ), and Cuiwei Holdings (603123.SH) posted gains of 41.2%, 44.9%, and 50.5% respectively.
Hong Kong-listed peers saw even more dramatic moves: ZhongAn Online (6060.HK), LianLian Digital (9990.HK), and YeePay (9923.HK) rose 22.5%, 41.9%, and 88% over six trading days.
Sui Dong, research analyst at PEP Wealth, attributes the surge to two converging catalysts:
- Regulatory certainty reducing policy risk in major economies
- Strategic positioning of stablecoins as hybrid assets—bridging compliant finance with scalable technology
“Stablecoins serve both as payment rails and gateways to digitized fiat,” Sui explains. “Investors are seeking assets that balance innovation with compliance, and this duality makes them particularly attractive.”
However, he cautions that many so-called “stablecoin概念股” (concept stocks) remain peripheral to core operations like reserve management or issuance rights. Most focus on downstream applications such as transaction processing or wallet integration—valuable but not foundational.
Institutional Interest Rises Amid Speculative Activity
While retail momentum plays a role, institutional investors are increasingly engaging with the space. On June 3, Zhongke Jincain disclosed an investor call held from May 29 to June 2, featuring Chairman Zhu Yedong and attended by representatives from major asset managers including E Fund, Boshi Fund, Guotai Fund, Penghua Fund, Hua’an Asset Management, Jianxin Wealth, and Dunhe Asset.
This level of institutional participation suggests growing due diligence on blockchain-adjacent businesses. Yet experts warn against conflating market hype with operational substance.
Ba Xiao-hui, chairman of Changli Asset, notes that digital currency stocks are historically prone to volatility and thematic speculation. “When one leader breaks out, others follow in a cascade,” he says. “Some investors chase momentum without evaluating fundamentals—this creates disconnects between price and performance.”
Circle’s IPO: A Catalyst for Legitimacy
Adding further momentum is the impending listing of Circle Internet Financial—the issuer of USD Coin (USDC), the world’s second-largest stablecoin—on the New York Stock Exchange on June 5.
As a bridge between traditional banking and decentralized ecosystems, Circle’s public debut represents a watershed moment for crypto-native firms seeking mainstream validation. With over $50 billion in USDC outstanding and partnerships across banking, payments, and DeFi platforms, its market entry underscores the maturation of regulated digital dollar infrastructure.
According to Kaisheng Securities analysts Chen Baojian and Liu Xiaoyao, stablecoins were created to solve cryptocurrency’s inherent price instability. By pegging value to stable assets like the U.S. dollar or gold, they enable reliable transactions within volatile environments.
Data from CoinMarketCap shows there are now 232 active stablecoins with a combined market capitalization exceeding $240 billion—accounting for approximately 8% of total crypto market value.
Core Functions and Economic Implications
Stablecoins function primarily as efficient payment tools with minimal price fluctuation. Unlike speculative cryptocurrencies, they offer little to no yield, emphasizing utility over appreciation.
Li Jian and Chen Yuxuan highlight their structural advantage: by bypassing intermediaries like correspondent banks, stablecoins reduce transaction costs and settlement times—especially valuable in cross-border remittances and trade finance.
Moreover, regulatory frameworks now recognize stablecoins as critical components of future digital finance. Both the U.S. and Hong Kong aim to strengthen their status as financial centers by fostering trusted digital dollar ecosystems.
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The GENIUS Act explicitly permits stablecoin reserves to be invested in short-duration U.S. Treasuries. As a result, issuers like Circle could become significant indirect buyers in the government bond market—potentially influencing yield curves and liquidity dynamics.
Zhang Jingjing’s macro team at CMBI Research emphasizes that stablecoins play vital roles beyond payments:
- Serving as collateral in decentralized lending protocols
- Providing liquidity in automated market makers (AMMs)
- Enabling seamless value transfer across blockchain applications
They also warn of broader macroeconomic consequences: widespread adoption could reshape international monetary flows, especially if dollar-backed tokens expand financial inclusion in emerging markets.
Global Impact and Future Outlook
From a global perspective,中信证券海外策略首席徐广鸿 (Xu Guanghong, Chief Overseas Strategist at CITIC Securities) believes stablecoin regulation could catalyze a restructuring of global payment systems. Compared to legacy SWIFT-based transfers, stablecoin transactions offer faster settlement and lower fees—key advantages for remittances and e-commerce.
Given that over 90% of stablecoins are pegged to the U.S. dollar, expanded usage would likely boost demand for short-term Treasuries without significantly impacting long-dated debt markets.
Still, Xu stresses that regulation alone won’t drive demand—real-world use cases must follow. “The key lies in practical application and ecosystem development,” he says.
Frequently Asked Questions
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar, euro, or gold. It combines blockchain efficiency with price predictability.
Q: Why are stablecoins important for financial innovation?
A: They enable fast, low-cost transactions across borders, support decentralized finance (DeFi) applications like lending and trading, and act as on-ramps from traditional finance into digital asset ecosystems.
Q: Are all "stablecoin概念股" directly involved in issuing stablecoins?
A: No. Most Chinese-listed companies labeled as stablecoin概念股 focus on supporting technologies—such as payment processing or blockchain integration—rather than actual issuance or reserve management.
Q: How do U.S. and Hong Kong regulations differ?
A: Both require full reserve backing and issuer licensing. The U.S. framework emphasizes national banking oversight and Treasury investments, while Hong Kong’s approach integrates with existing securities laws and focuses on local financial stability.
Q: Could stablecoins replace traditional banking functions?
A: Not fully—but they can complement them by improving efficiency in areas like cross-border payments, real-time settlements, and programmable money use cases.
Q: Is the current stock rally sustainable?
A: Long-term sustainability depends on whether companies can transition from concept-driven valuations to revenue-generating roles within the digital asset economy.
The convergence of regulation, institutional engagement, and technological readiness is positioning stablecoins at the forefront of financial evolution. While caution is warranted amid speculative activity, the underlying trend points toward deeper integration between digital currencies and global finance.
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