FUTU(US:FUTU)2025-07-19 14:57Summary of Conference Call on Stablecoins and Digital Currency Opportunities Industry Overview - The discussion revolves around the stablecoin industry, particularly focusing on the development of the Renminbi (RMB) stablecoin and its implications in the digital currency landscape [1][2][5]. Key Points and Arguments 1. Stablecoin Definition and Usage: Stablecoins are cryptocurrencies pegged to stable assets, primarily fiat currencies, to maintain price stability. They are extensively used in cryptocurrency trading, cross-border payments, and tokenization of real-world assets [2][3]. 2. Market Volume: In 2024, the global spot trading volume reached nearly $19 trillion, with 80% of transactions involving stablecoins. Visa reported a total stablecoin transaction volume of approximately $35 trillion over the past year, with 80% classified as programmatic trading [1][3]. 3. Legislative Developments in the U.S.: The U.S. House passed the "Genius Act," aimed at enhancing asset regulatory transparency, which could solidify the dollar's dominance by establishing dollar-pegged stablecoins [1][5]. 4. China's Stance on Stablecoins: China has banned virtual currency trading, limiting the development of RMB stablecoins. However, Hong Kong is positioned as a testing ground for RMB stablecoins, having implemented relevant legislation on August 1 [1][6][8]. 5. Hong Kong's Regulatory Framework: The Hong Kong Monetary Authority (HKMA) has initiated a sandbox for stablecoin testing, with three institutions participating. The regulatory framework aims to create a secure and transparent ecosystem for stablecoin issuance and trading [1][9][12]. 6. Potential Beneficiaries: Key players in the stablecoin market include issuers, reserve asset managers, trading platforms, and users. The HKMA's sandbox participants are expected to benefit from the regulatory environment [9][17]. 7. Futu's Competitive Advantage: Futu has a strong brand presence and a large customer base in the cryptocurrency trading ecosystem, providing a one-stop trading platform and holding various strategic licenses [1][13][14]. 8. Future of RMB Stablecoin: The issuance and adoption of RMB stablecoins may lag behind USD and HKD stablecoins due to limited reserve pools and usage scenarios. The internationalization of the RMB is contingent on restoring global confidence in China's growth [2][18][20]. Additional Important Insights - Challenges in RMB Internationalization: The RMB's internationalization requires structural reforms to enhance the attractiveness of RMB assets, addressing issues like debt deflation and an aging population [20][21]. - Impact of Stablecoin Legislation: The implementation of the stablecoin law in Hong Kong is expected to fill a global compliance gap and inject new momentum into the financial center, potentially enhancing its competitiveness in the digital asset space [17][18]. This summary encapsulates the critical insights from the conference call regarding the stablecoin landscape, particularly focusing on the RMB stablecoin's development and the regulatory environment in Hong Kong.