2 min read
Jun 19, 2025
Asia’s Stablecoin Revolution: How 2025 is Poised to be the Year of Growth
TL;DR
While USD-backed stablecoins still dominate, Asian markets are accelerating adoption of local currency-pegged stablecoins to boost sovereignty and modernize payments.
Hong Kong is leading the charge with a forthcoming Stablecoin Bill and plans for regulated issuance by late 2025.
Regional demand is driven by cheaper, faster transactions, reduced reliance on the US dollar, and the need for more programmable, inclusive financial tools.
Projects like XSGD, IDRT, and CNHt are emerging as early leaders in Asia’s shift toward homegrown stablecoin ecosystems.
US-dollar backed stablecoins currently dominate a whopping 99% of the stablecoin market, but that may soon change, with Asian markets increasingly looking to adopt stablecoins that are linked to their respective local currencies. Hong Kong, in particular, is fashioning itself as a stablecoin hub, with a rapidly evolving regulatory landscape. Their Stablecoin Bill is expected was passed in May and regulators have indicated that stablecoin licences will be issued in a few months.
The Factors Driving the Adoption of Stablecoins
The main factors driving the adoption of stablecoins are:
Cost-efficiency: Stablecoin payments have significantly cheaper transaction costs than traditional payment methods.
Speed: Unlike traditional remittances, which take days to settle, stablecoin settlements are significantly faster.
The growing interest in stablecoins in Asia speaks to the region’s desire to enhance monetary sovereignty and reduce exposure to foreign exchange volatility. This includes decreasing reliance on the US dollar in global trade, investment, and financial transactions, while also aiming to boost financial inclusion and modernize payment systems.
“Stablecoins unlock a new level of flexibility in digital finance,” says Ferdinand Dabitz, CEO at Ivy.
“They enable transactions that can be automated, conditional, and precisely tailored to real-world scenarios — something traditional digital money just isn’t built for.”
Leading Stablecoins in Asia
Tiger Research has compiled a list of non-dollar stablecoin projects in Asia that highlights some of the leading stablecoins in Asia, including:
StraitsX (XSGD): Pegged to the Singaporean dollar, XSGD boasts a market cap of over $18 million. It’s incorporated under the Monetary Authority of Singapore’s (MAS) Payment Services Act, making it one of Asia’s most trusted stablecoins.
Rupiah Token (IDRT): IDRT is issued by PT Rupiah Token Indonesia and is pegged to the Indonesian Rupiah. It has a market cap of $4.8 million and operates on Ethereum and Binance Chain, among other networks.
Tether CNHt (Chinese Yuan): Tether CNHt is pegged to the offshore Chinese Yuan and serves as a stablecoin for international trade involving Chinese businesses.
Read their report here.
Additional Resources
