Circle reported $2.4 trillion in on-chain stablecoin activity across Asia-Pacific between June 2024 and June 2025, marking the region as the fastest-growing stablecoin market globally with 69% year-over-year growth.
Speaking at Circle Forum Singapore, Yam Ki Chan, Circle’s VP for APAC, stated that 56% of institutions across Asia are already live with stablecoins, the highest adoption rate worldwide, actively transacting for payments, settlements, and treasury purposes.
Singapore and Hong Kong have emerged as the second and third-largest stablecoin hubs globally, after the United States.
Monthly transaction volumes grew from under $100 million in early 2023 to over $3 billion by early 2025, driven by cross-border corporate payments, travel, luxury retail, and high-value goods sectors.
This regional surge coincides with the global stablecoin market capitalization surpassing $300 billion for the first time, with Tether’s USDT maintaining 58% market share at $176.3 billion, followed by Circle’s USDC at $74 billion.
Source: DefiLlamaThe sector’s 20% quarterly growth in Q3 2025 outpaced traditional asset classes, driven by institutional interest and the US GENIUS Act, which provided regulatory clarity.
Hong Kong and Japan Race to Issue Regulated Local Currency Stablecoins
The momentum has accelerated regulatory action across major Asian financial centers.
Hong Kong’s Stablecoin Bill took effect on August 1, establishing one of the world’s first comprehensive licensing regimes.
Immediately, the Hong Kong Monetary Authority received inquiries from more than 40 companies, with application deadlines set for September 30.
Among the most significant applicants, Bank of China Hong Kong’s shares jumped 6.7% on September 1 after reports revealed the state-owned lender is preparing to apply for a stablecoin issuer license.
The bank formed a task force to study stablecoin issuance, potentially positioning itself as a rival to the digital yuan.
The competition also intensified as Animoca Brands established Anchorpoint Financial Limited in collaboration with Standard Chartered Bank Hong Kong and HKT, submitting a formal interest to the HKMA on August 1.
Publicly listed companies raised over $1.5 billion in July to fund stablecoin ventures, with a dedicated stock index surging 65% this year.
While Hong Kong races to build its stablecoin infrastructure, Japan is moving on a parallel track.
The country’s Financial Services Agency is expected to approve the first yen-denominated stablecoin this month, with Tokyo-based JPYC spearheading the launch.
The firm plans to issue 1 trillion yen worth of JPYC over three years, approximately $6.8 billion, with interest from hedge funds and family offices for carry trade strategies.
Building on this momentum, SBI Holdings and SBI Shinsei Bank invested $50 million into Circle following its June NYSE debut, which saw shares surge from $31 IPO price to close at $83.
The companies established a joint venture, Circle SBI Japan KK, to accelerate USDC integration with Japan’s financial system.
Visa and Ant Group Scale Cross-Border Payment Infrastructure
Beyond regulatory frameworks, major payment providers are racing to capture stablecoin transaction flows.
Visa announced on September 30 that it had begun testing a system enabling businesses to fund cross-border payments using stablecoins, rather than pre-depositing cash into local accounts.
The pilot, through Visa Direct, targets banks and remittance firms that hold funds in multiple currencies.
The payments giant has already processed over $200 million in cumulative stablecoin settlement volume and plans to expand the program in 2026.
Similarly, Ant Group plans to apply for stablecoin licenses in Hong Kong, Singapore, and Luxembourg.
The Jack Ma-backed fintech’s international unit processed over $1 trillion in transactions last year, with one-third of these routed through its proprietary blockchain network, Whale.
The company’s overseas arm reported nearly $3 billion in revenue for 2024.
Singapore has also positioned itself as a key enabler of this expansion.
The Monetary Authority hosted the inauguration of Circle’s Asia-Pacific office in May 2025, while Singapore-based businesses, including Wetrip travel agency, Capella Hotels, and luxury reseller Ginza Xiaoma, adopted stablecoins as payment options.
The city-state serves as a pivotal gateway for cross-border transactions between China and the rest of the APAC region.
Looking ahead, analysts project that stablecoins could handle 5-10% of cross-border transactions globally by 2030, translating to trillions of dollars in transaction volume.
Source: EY[dot]comAn additional 40% of APAC institutions are piloting or planning stablecoin deployments, with traditional B2B players, such as shipping brokers and steel exporters, leveraging stablecoins for faster global trade settlements.
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