Summary of the Conference Call on Stablecoins in Asia-Pacific Industry Overview - The report focuses on the evolving landscape of stablecoins in the Asia-Pacific region, particularly in light of the GENIUS Act passed in July 2025 and recent stablecoin IPOs in the US [1][2] - Many Asia-Pacific countries are considering the introduction of local currency stablecoins, but the regulatory framework is still in development [1][2] Key Insights - **Regulatory Landscape**: The regulatory environment for stablecoins is rapidly evolving, with countries like Singapore, Australia, and Japan already having frameworks in place for stablecoin issuance [11][20] - **Adoption Potential**: Korea, Singapore, and Hong Kong are identified as having the highest potential for stablecoin adoption due to their familiarity with crypto and high cashless payment rates [3][10] - **Market Size**: The USD-denominated stablecoin market cap is approximately $300 billion, while Asia currency-based stablecoin market cap is only around $49 million, indicating significant room for growth [9] Opportunities and Challenges - **Cross-Border Payments**: Stablecoins present a natural opportunity for cross-border payments, with potential transaction cost reductions of 60-80% compared to traditional systems [29] - **Corporate Interest**: Corporates are beginning to shift their focus towards stablecoins, with some already signing agreements for stablecoin transactions [2][40] - **Financial Institutions' Response**: Local banks are becoming increasingly aware of the risks posed by stablecoins, particularly regarding FX commissions and trade finance earnings [40] Regulatory Developments - **Australia**: The RBA is exploring the role of stablecoins through Project Acadia, focusing on the development of a Central Bank Digital Currency (CBDC) [17] - **Korea**: The Bank of Korea emphasizes the need for traditional banks to lead stablecoin initiatives to ensure monetary policy efficacy [17] - **Hong Kong**: The Stablecoins Ordinance requires a license for stablecoin issuance, with 36 applications received by the HKMA as of September 2025 [17] - **China**: The PBOC maintains a cautious stance towards stablecoins, focusing on the promotion of the digital yuan instead [18] Market Dynamics - **Demographics**: Countries with a higher share of younger populations and foreign workers are expected to drive demand for stablecoins, particularly for cross-border remittances [10][11] - **Technological Adoption**: Advanced digitization in Asia, characterized by a young population of "digital natives," supports higher adoption rates for stablecoins [6] Financial Institutions' Initiatives - Financial institutions are adapting to the changing landscape by exploring partnerships and developing blockchain-based solutions for stablecoin transactions [63] - Examples include POSCO International's collaboration with JPMorgan Kinexys for a blockchain-based global payment system and Mitsubishi Corporation's plans to use JPY-pegged stablecoin for internal payments [45] Conclusion - The stablecoin ecosystem in Asia-Pacific is still in its early stages, but the potential for growth is significant as regulatory frameworks develop and corporates begin to adopt these digital currencies [1][2][9]

Core Viewpoint - Solowin Holdings has been selected as an industry pioneer in the pilot phase of Project Ensemble by the Hong Kong Monetary Authority, focusing on enabling real-value transactions involving tokenized deposits and digital assets [1][4]. Group 1: Company Overview - Solowin Holdings is a leading financial technology firm that bridges traditional and digital assets, focusing on digital currency payments and asset tokenization [6]. - The company operates through its subsidiary, Solomon JFZ (Asia) Holdings Limited, which is licensed by the Hong Kong Securities and Futures Commission [6]. - Solowin aims to establish itself as a global digital asset financial platform, integrating traditional finance with the Web3 ecosystem [6]. Group 2: Project Ensemble and Participation - Solomon JFZ is listed in Annex B of EnsembleTX, which includes other notable participants such as Ant International and Hong Kong Exchanges and Clearing Limited [2]. - The EnsembleTX initiative will facilitate interbank transactions involving tokenized deposits and fund subscriptions through a blockchain-based infrastructure [3]. - The project aims to enhance interoperability, efficiency, and automation in the financial ecosystem, marking a transition to real-value transaction applications in Hong Kong's tokenization landscape [4]. Group 3: Future Prospects - The initial focus of EnsembleTX will be on using tokenized deposits in money market fund transactions and managing liquidity in real-time [4]. - Dr. Haokang Thomas Zhu, Director of Solowin, expressed optimism about the potential of tokenized deposits in driving financial innovation and expanding their applications in fund settlement by 2026 [5].

Core Insights - Solowin Holdings has been selected by the Hong Kong Monetary Authority as an industry pioneer in the pilot phase of Project Ensemble, which focuses on enabling real-value transactions involving tokenized deposits and digital assets [1][4]. Group 1: Project Ensemble - Solomon JFZ will collaborate with other leading institutions to facilitate interbank transactions involving tokenized deposits and fund subscriptions through a blockchain-based infrastructure [3]. - The initiative aims to enhance interoperability, efficiency, and automation across the financial ecosystem, laying a foundation for a tokenized economy [3][4]. - The pilot will initially focus on using tokenized deposits in money market fund transactions and managing liquidity in real-time [4]. Group 2: Company Background - Solowin Holdings is a financial technology firm established in 2016, focusing on bridging traditional and decentralized finance [6]. - The company operates through its licensed subsidiary, Solomon JFZ, and has developed a multi-jurisdictional financial platform that includes stablecoin payments and asset tokenization [6]. - The firm is backed by leading international institutional investors and aims to drive the convergence of traditional finance and the Web3 ecosystem [6].

Partnerships & Expansion - Custodia 和 Vantage 扩大试点项目，建立美国银行的实时代币化存款网络 [1]

Core Viewpoint - Citigroup's CEO Jane Fraser emphasizes that tokenized deposits will be the primary driver of future digital finance, rather than stablecoins [1][4]. Group 1: Client Needs and Solutions - Institutional clients are seeking seamless, real-time, low-cost cross-border payment solutions that are compliant [1]. - Fraser states that clients desire interoperable, multi-bank, always-on payment solutions, which are best achieved through tokenized deposits [2]. Group 2: Digital Asset Infrastructure - Citigroup has made significant investments in digital asset infrastructure, including a 24/7 U.S. dollar clearing network [2]. - The bank's tokenized services can connect to over 250 banks across more than 40 markets, allowing for instant fund transfers to suppliers and third parties [2]. Group 3: Challenges and Operational Friction - The main barrier to broader adoption of tokenized deposits is not technical but rather the readiness of corporate treasury departments for a 24/7 financial environment [2]. - While Citigroup supports stablecoins, Fraser highlights that they introduce more operational friction due to regulatory requirements such as anti-money laundering (AML) and tax reporting [3]. Group 4: Future of Tokenization - Fraser envisions tokenization extending beyond payments, with potential applications in the issuance and settlement of various assets like oil and equities on tokenized platforms [4]. - The regulatory environment is becoming more conducive to responsible innovation, which will aid market development [5].

Bank of New York Mellon Corp. is exploring tokenized deposits to enable clients to make payments using blockchain, as major banks across the world step up use of the technology underpinning digital assets to transfer funds https://t.co/VTk1pDlsP3 ...

Core Insights - India's financial landscape is undergoing a transformation with the potential adaptation to stablecoins, as highlighted by Finance Minister Nirmala Sitharaman, who emphasized the need for nations to adapt to new monetary architectures or risk exclusion [3][4][7] Regulatory Environment - Historically, India's courts and financial regulators have aimed to suppress cryptocurrency activities, with the Reserve Bank of India (RBI) opposing digital assets and warning against the risks posed by stablecoins [1][4][5] - The RBI has expressed concerns that stablecoins could fragment India's financial infrastructure and weaken the existing digital payment system [4][5] Central Bank Digital Currency (CBDC) and Tokenized Deposits - The RBI is actively piloting its Central Bank Digital Currency (CBDC), the e-rupee, which has been in a large-scale pilot for three years, covering both retail and wholesale transactions [6][7] - The RBI's latest initiative involves commercial banks exploring tokenized deposits, which are seen as a middle ground between stablecoins and CBDCs, being privately owned and fully backed by bank deposits [6][8]