At TOKEN2049, Yat Siu, who cofounded and chairs Animoca Brands, participated with TheStreet.
Roundtable
host Scott Melker to talk about the future of
stablecoins
—and why Hong Kong’s innovative method might transform adoptions globally.
“We’re also venturing into space. This move includes Animoca Brands gaining more institutional backing. We’ve established a partnership with Standard Chartered and HKT, the leading telecommunications company in the area, to introduce a stablecoin,” according to Siu.
Currently, the aggregate value of the stablecoin market totals $244.99 billion, marking a decrease of 0.5% over the past day. The daily trade volume has hit $78.05 billion, indicating consistent engagement within the markets. Stablecoins continue to play an essential role as a cornerstone for cryptocurrency liquidity and international financial exchanges.
What sets this stablecoin apart? It has been authorized by the Hong Kong Monetary Authority, as Siu pointed out, likely making it “the very first one approved by a central bank.”
Siu highlighted the worldwide significance of Hong Kong’s position. “Hong Kong has consistently served as a financial bridge for China, facilitating transactions inward and outward… To illustrate, consider the so-called Dim Sum bonds… Every day, approximately two-plus trillion yuan transacts through Hong Kong.” He further stated, “A stablecoin originating from this region would ensure that Hong Kong stays a significant financial hub.”
However, it’s also centered around trust. As Siu pointed out while commending leaders such as Tether and Circle, widespread acceptance will happen once typical consumers notice that traditional banks support these digital currencies.
“If someone with limited knowledge of cryptocurrency starts saying, alright, I’m using a token that’s pegged to the US dollar. Can I rely on it? And if this token originates from a bank… for an average user… they think, well, sure, I can trust the bank.”
Melker noted that in the U.S., legislators might soon mandate that stablecoin issuers must be banks. “There has been some concern…that laws could stipulate only banks can issue stablecoins… We’re definitely moving toward a future with offerings like Goldman Sachs Coin, BNY Mellon Coin, and JPMorganCoin, which already exists.”
Siu concurred and pointed out that geopolitics plays a crucial role. “Last year, I believe the seventh biggest purchaser of T-bills was Tether… Considering the dominance of the US dollar as global reserve currency… how can we ensure it remains the preferred option? In my view, stablecoins offer the solution.”
Importantly, he clarified.
It isn’t really a CBDC… The Hong Kong dollar is essentially supported by the US dollar… so in some ways, the Hong Kong dollar might have been one of the original stablecoins.
Treasury Secretary criticizes Senate for obstructing stablecoin legislation
U.S. Treasury Secretary Scott Bessent condemned the Senate on Thursday for turning down the GENIUS Act, which was intended as legislation for regulating stablecoins, describing it as a “lost chance” for the U.S. to take the helm in digital asset development.
“For stablecoins and other digital assets to flourish internationally, we require American leadership,” Bessent wrote on X. “Today, the Senate failed to seize this chance by not progressing with the GENIUS Act.” Describing the legislation as a “rare moment” for enhancing the dollar’s supremacy and fortifying America’s role in fintech, he cautioned that lack of federal oversight might push innovations abroad.
The Senate cast a vote of 49-48 against passing the bill, with Republican senators Josh Hawley and Rand Paul aligning themselves with Democrats due to disagreements regarding the wording of the legislation and oversight measures. Concerns were raised about clauses related to anti-money laundering protocols as well as limitations imposed on foreign issuers. The situation escalated further because of President Trump’s increasing involvement with cryptocurrencies, which included launching meme coins, hosting expensive fundraising events, and supporting a decentralized finance initiative complete with its own stablecoin. Concluding his remarks, Bessent stated, “Those Senators choosing to hinder American creativity must now decide whether they will take charge or let advancements in digital assets migrate overseas.”
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