All Eyes on Stablecoin - Tech Firms, Governments, and Banks (ASA News #1)

*[ASA News] is a bi-weekly newsletter where we share the most important news related to stablecoin in Asia.

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Written by Heechang, Moyed

1. Stablecoins can Serve as the Financial Platform for IT Platforms

1.1 [News] Ant International Seeks Stablecoin Licenses in Hong Kong

Source: Ant Group's International Unit Seeks Stablecoin Licenses in Hong Kong, Singapore: Bloomberg

Jack Ma’s Ant Group, through its international unit, is preparing to apply for stablecoin issuer licenses in Hong Kong and Singapore, according to a Bloomberg report. This move is timed with the introduction of new stablecoin regulations in Hong Kong, which are set to take effect in August 2025. Ant International also plans to seek a similar license in Singapore and Luxembourg, signaling a broader strategy to expand its digital asset offerings beyond China, where its Alipay platform already dominates the mobile payments market with over a billion users and a 55% share of the third-party payment sector.

The progress in establishing clear stablecoin regimes in major markets like Hong Kong and, potentially, the U.S., is expected to accelerate the adoption and integration of stablecoins by large-scale payment providers and fintech companies.

2.1 Commentary

Heechang (ASA, Four Pillars) - Ant Financial's recent move into stablecoins marks just the beginning of a broader shift across the financial infra of tech giants.

Not only is Ant Financial having its own stablecoin initiative, but companies like Grab, Naver, Kakao, and Line are also actively exploring similar digital asset strategies. These companies, known as super apps due to their expansive ecosystems covering payments, commerce, and communication, must view stablecoins as critical infrastructure to streamline financial transactions, reduce operational costs, and provide seamless user experiences within their diverse services and across borders.

Stablecoins can serve as the financial platforms within their platform, but also cross-platforms.

Moreover, this interest extends beyond Asia, with global technology leaders such as Apple and Amazon recognizing the strategic potential of stablecoins. Apple's potential entry could further integrate digital payments within its vast global user base, enhancing user convenience while positioning itself as a leader in digital financial infrastructure. Similarly, Amazon could leverage stablecoins to simplify international trade and payments across its expansive marketplace, significantly reducing transaction friction and costs.

For Asia to maintain its competitive edge, companies must pursue a bolder and more proactive approach towards stablecoin adoption. Companies like Grab, Ant Financial, JD.com, and Kakao should leverage their strong user base, viewing stablecoins not just as digital alternatives but as the end goal of their financial infrastructure.

2. Bold Moves from Central Banks on Stablecoins: Are They Effective?

2.1 [News] Kazakhstan’s National Bank launched Crypto Cards Project

Source: National Bank launched "crypto-cards" project and pilot projects in digital assets

On June 3, 2025, the National Bank of Kazakhstan launched a "crypto-cards" project and several pilot initiatives in digital assets as part of a broader push to develop the country's digital asset sector1. The "crypto-card" allows consumers to make non-cash payments by linking traditional payment cards to crypto wallets managed by licensed providers at the Astana International Financial Center (AIFC). When a payment is made, the client’s digital assets are instantly sold on the AIFC crypto market, and the equivalent value is credited to the card in fiat currency, enabling seamless integration of digital assets into Kazakhstan’s existing payment infrastructure. The announcement also outlined plans for pilot projects such as issuing stablecoins backed by the national currency, tokenizing financial assets and real estate, improving systems for collateral and storage of digital assets, and expanding services for crypto asset exchange and custody.

2.2 Commentary

Heechang (ASA, Four Pillars) - How can Central Banks build strategy Stablecoins

What if central banks aggressively pursue stablecoin initiatives? Central banks could implement crypto cards enabling consumers to pay at merchants, with stablecoins instantly liquidated on exchanges to settle transactions in real time. Central Banks can also streamline cross-border remittances, allowing international transfers directly through domestic-currency stablecoins, significantly reducing registration and procedural barriers. Additionally, stablecoins could form the foundation for platforms trading tokenized securities or real estate assets.

These scenarios are not merely hypothetical. These are the Kazakhstan’s central bank plans for this year, including the rollout of crypto cards.

As Simon Taylor emphasized, stablecoins are fundamentally platforms, and central bank-issued stablecoins inherently represent the highest level of trust for users. Therefore, it is crucial to strategically leverage this trust to maximize safety and adoption.

3. Banks and Stablecoins

3.1 [News] Major South Korean banks plan won-based stablecoin

Source: Major South Korean banks plan won-based stablecoin | Digital Watch Observatory

South Korea’s eight largest banks - including KB Kookmin, Shinhan, Woori, NongHyup, Industrial Bank of Korea, Suhyup, Citibank Korea, and Standard Chartered Korea - have formed a consortium to launch a won‐pegged stablecoin by late 2025 or early 2026, pending regulatory approval. Supported by the Financial Supervisory Service, blockchain advocates, and the Korea Financial Telecommunications and Clearings Institute, the project is exploring both custodial trust and 1:1 deposit-linked issuance models, and aims to power domestic payments, remittances, and Web3 finance while reducing reliance on foreign‑currency stablecoins.

Concurrently, the Bank of Korea advocates for a gradual rollout through regulated banks to safeguard monetary policy and financial stability, echoing Governor Rhee Chang‑yong’s reservations about potential forex complications. This initiative aligns with President Lee Jae‑Myung’s broader “Digital Asset Basic Act” agenda to modernize Korea’s digital financial framework.

3.1 Commentary

Moyed (ASA Contributor, Delta Network) - Banks want to play safe.

In my opinion, consortium has three meanings. First, singleness. By pursuing a stablecoin initiative as a collective, they want each bank issued stablecoin to be exchanged seamlessly, just like how fiat works.

Another perspective is integrity and the KYC effort. Fraud is a real threat not only in stablecoins. Recently, Worldline’s stock tumbled 41 percent after the report of customer fraud. Korean banks, which are all publicly traded, will never let this happen. As multiple banks work together in a consortium, they can come up with a monitoring system built from the ground up.

Lastly, from a strategic perspective, no one here wants to take full responsibility. I believe the consortium is a reasonable decision for each bank as they don’t want to miss the upside, but they also don’t want to take on the responsibility of solely driving this initiative.

Now let’s talk about the two approaches they are exploring. First is the separated custodial trust model. Banks will put customer funds in a segregated trust account, and users will own a claim to the underlying fiat in the form of a stablecoin. My biggest concern with this approach is why banks would ever want to do this. They cannot use the funds like normal deposits, and there are not appropriate high quality liquid assets for the Korean won compared to United States bonds. So they cannot make money from yield on reserve assets.

The other option is the deposit token model. This option completely gives away the yield aspect, but banks may be motivated to do this to increase the overall deposits of their bank. While we are not sure if a won stablecoin would be a strong enough nudge for users to deposit more, one possible way forward is to increase the utility of deposit tokens. This seems possible, as JPMorgan has already launched its United States dollar deposit token for institutional clients on Base. While there may be some concerns about integrity, at least this looks more viable in the long term compared to the segregated custodial option.

4. Other News

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4.1 Theme 1. Government is Moving Swiftly

4.1.1 Hong Kong to Launch Comprehensive Stablecoin Regulations from August 1st

• Global stablecoin market valued at US$240 billion, with trading volume exceeding US$20 trillion last year.

• HKMA will begin processing license applications for qualified stablecoin issuers, targeting overseas institutions.

• Strategic positioning leverages Hong Kong's offshore yuan holdings and could challenge USD-backed stablecoin dominance.

4.1.2 South Korea Introduces Digital Asset Bill to Legalize Stablecoin Issuance

• Companies with minimum capital of $368,000 will be allowed to issue stablecoins backed by won and other currencies.

• The Digital Asset Basic Act aims to keep financial innovation within South Korea and boost domestic tech sector growth.

• Part of the new president's broader blockchain initiative to modernize the country's financial system and economy.

4.1.3 Bank of Korea Plans Gradual Introduction of Won Stablecoins via Banks

• Commercial banks to get first priority in issuing won-based stablecoins due to existing regulatory framework.

• Central bank cites concerns over monetary policy impact and need for safety nets to prevent market disorder.

• BOK preparing for second CBDC pilot test while accelerating currency market reforms for foreign investors.

4.2 Theme2. Tech Companies are Building their Own Stablecoin Strategy

4.2.1 Major Tech Giants Including Apple, Google, X, and Airbnb Exploring Stablecoin Integration

• Google Cloud already accepting PYUSD payments, while Airbnb in discussions with Worldpay and BNVK for stablecoin infrastructure.

• X planning to integrate stablecoins into upcoming X Money payment product, while Apple reportedly meeting with Circle (USDC issuer).

• Initiative driven by Trump's pro-crypto stance and potential cost savings in payment processing and cross-border transactions.

4.2.2 KakaoPay Stock Surges 200% Following Korean Stablecoin Patent Filings

• Company filed six stablecoin-related patents, signaling preparation for Korean won-backed stablecoins.

• KakaoPay's $429M in prepaid user balances positions it as prime beneficiary of upcoming stablecoin regulations.

• Move follows South Korean President Lee's pledge to promote local currency-backed stablecoins and proposed legislation for stablecoin licensing.

4.2.3 Walmart and Amazon Exploring Launch of Their Own Payment Stablecoins

• Move could help both retail giants avoid billions in credit card transaction fees, impacting Visa and Mastercard stocks negatively (down 4-5%).

• Initiative aligns with pending "Genius Act" legislation that would create regulatory framework for private company stablecoin issuance.

• Both companies join growing trend of large corporations exploring stablecoins, following Expedia and various airlines.

4.3 Others

4.3.1 Eight Major South Korean Banks to Launch Won-Pegged Stablecoin by 2026

• Project aims to reduce dependence on foreign digital currencies, with backing from Financial Supervisory Service and blockchain groups.

• Considering two models: trust-based system with segregated funds or deposit token model with 1:1 bank liability backing.

• Will support domestic payments, cross-border transfers, and Web3 services, with potential future integration into national systems.