The stablecoin sector is capturing global financial attention, with recent regulatory advancements in the United States and Hong Kong SAR sparking renewed investor enthusiasm. This momentum has ignited a rally in fintech stocks across mainland China and Hong Kong, as markets anticipate broader adoption and institutional integration of digital dollar-backed assets.
Regulatory Milestones Drive Market Confidence
In late May 2025, the U.S. Senate passed the Guiding Establishing National Innovation with Stablecoins Act (GENIUS Act), establishing a federal framework for stablecoin issuance and oversight. Shortly after, on May 30, Hong Kong’s Legislative Council formally adopted its Stablecoin Bill, publishing it in the official gazette and marking a pivotal step toward regulated digital currency infrastructure in Asia.
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These parallel developments signal growing recognition of stablecoins as legitimate components of modern financial ecosystems. According to analysts at Huatai Securities, Li Jian and Chen Yuxuan, this marks “another milestone in crypto acceptance following the approval of Bitcoin ETFs,” reinforcing stablecoins’ role as bridges between traditional finance and blockchain innovation.
Fintech Stocks Soar Amid Investor Frenzy
Capital markets reacted swiftly. From May 28 to June 5, 2025, A-shares linked to digital currency and blockchain technologies surged. Yuyin Shares rose for five consecutive trading days with daily涨停 (price limit ups), while Zhongke Jincai, Hengbao Co., and Cuiwei Shares gained 41.2%, 44.9%, and 50.5% respectively.
Hong Kong-listed equities mirrored the trend: ZhongAn Online, LianLian Digital, and YeeCar climbed 22.5%, 41.9%, and 88% over six sessions.
Sui Dong, a researcher at PEP Wealth, attributes the rally to two key drivers:
- Regulatory clarity reducing policy uncertainty
- Stablecoins’ dual function as both payment rails and gateways to fiat digitization
“Investors are hunting for assets that combine compliance with real-world utility,” Sui explained. “Stablecoins fit that niche perfectly.”
However, he cautions that many listed firms remain at the application layer—offering payment solutions or blockchain integration—without involvement in core functions like issuance or reserve management.
Structural Mismatch: Hype vs. Reality
Despite the market euphoria, experts warn of a growing disconnect between investor sentiment and corporate fundamentals.
“Many so-called ‘stablecoin概念股’ (concept stocks) are riding on narrative rather than revenue,” said Bao Xiaohui, chairman of Changli Asset Management. “Digital currency sectors have always been volatile, and speculative capital often amplifies early-stage trends.”
When one leader gains traction, momentum spreads rapidly across related names—a phenomenon known as sector resonance. Some investors may be buying based purely on market momentum, overlooking actual earnings power or technological differentiation.
Yet institutional interest suggests deeper engagement beyond retail speculation.
Institutional Investors Dive In
Evidence of serious investor scrutiny emerged when Zhongke Jincai disclosed its investor call records on June 3. Between May 29 and June 2, senior executives hosted an online briefing attended by major financial institutions including:
- Securities firms: Minsheng Securities, Guosheng Securities, Huatai Asset
- Fund managers: E Fund, Boshi Fund, Yifangda (E Fund), Fuguo Fund
- Asset managers: Jianxin Wealth, Huaan Fund, YinHua Fund
The breadth of participation—from public funds to private equity—indicates growing institutional due diligence into stablecoin-adjacent businesses.
Circle’s NYSE Debut Signals Industry Maturation
Another catalyst fueling market optimism is the impending public listing of Circle, issuer of USD Coin (USDC), the world’s second-largest stablecoin by market cap.
On June 5, 2025, Circle began trading on the New York Stock Exchange—an event widely seen as legitimizing the stablecoin industry within traditional finance.
USDC’s integration with banking systems underscores its evolving role beyond crypto trading into broader financial services. As an open-source digital dollar vehicle, it enables faster cross-border settlements, programmable payments, and DeFi liquidity provisioning.
What Are Stablecoins—and Why Do They Matter?
Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to fiat currencies like the U.S. dollar or euro, or commodities such as gold.
As OpenSource Securities analysts Chen Baojian and Liu Xiaoyao note, their primary purpose is to mitigate the extreme volatility associated with assets like Bitcoin or Ethereum. Today, they serve as foundational infrastructure in decentralized finance (DeFi), facilitating lending, yield generation, and automated market-making.
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According to CoinMarketCap data as of May 20, 2025:
- Over 232 stablecoins exist globally
- Total market capitalization exceeds $240 billion
- Stablecoins represent approximately 8% of total crypto market value
Huatai analysts emphasize that stablecoins function primarily as pure payment tools—non-interest-bearing, low-volatility mediums of exchange that bypass intermediaries like correspondent banks, thereby reducing transaction costs and settlement times.
Strategic Roles in Finance and Beyond
Zhang Jingjing’s macro team at CMBI Research highlights several critical use cases:
- Trading medium in crypto markets
- Liquidity backbone for DeFi protocols
- Collateral asset in lending platforms
- Bridge to central bank digital currencies (CBDCs)
But their influence extends beyond digital ecosystems.
Impact on U.S. Treasury Markets
Under the GENIUS Act, stablecoin issuers can invest reserves in short-term U.S. Treasury bills—effectively turning them into silent yet significant buyers in the government debt market.
This shift could reshape yield curves and enhance liquidity in short-duration bonds. However, demand is unlikely to spill over into long-term Treasuries.
Xu Guanghong, Chief Overseas Strategist at CITIC Securities, notes: “While stablecoins may support short-end rates through reserve demand, their structural impact remains confined to near-term instruments.”
Global Payment Transformation
From a macroeconomic standpoint, Xu adds that widespread stablecoin adoption could redefine cross-border payments, offering lower fees and near-instant settlement compared to legacy systems like SWIFT.
Given that dollar-backed stablecoins dominate the landscape (e.g., USDT, USDC), continued expansion would likely channel new capital flows into U.S.-denominated assets—further entrenching dollar influence in digital finance.
Still, Xu cautions: “Regulation alone won’t drive demand. Real-world use cases—from remittances to trade finance—must mature alongside policy frameworks.”
Frequently Asked Questions (FAQ)
Q: What exactly is a stablecoin?
A: A stablecoin is a type of cryptocurrency pegged to a stable asset like the U.S. dollar or gold. Its value remains relatively constant, making it suitable for transactions and store-of-value purposes in volatile crypto markets.
Q: Are Chinese companies involved in issuing stablecoins?
A: Currently, no mainland Chinese firms issue globally recognized stablecoins. Most A-share “stablecoin concept” stocks provide supporting technologies like blockchain infrastructure or payment processing—not direct issuance or reserve management.
Q: How do stablecoins differ from central bank digital currencies (CBDCs)?
A: CBDCs are sovereign-backed digital currencies issued by central banks. Stablecoins are typically issued by private entities but may be backed by reserves including CBDCs or traditional fiat.
Q: Can stablecoins earn interest?
A: Not inherently. However, they can be deposited into DeFi platforms or centralized lenders where they generate yield through lending or liquidity provision.
Q: Is the recent stock rally sustainable?
A: Long-term sustainability depends on tangible business growth. While regulatory progress boosts sentiment, valuations must eventually reflect real revenue from scalable applications.
Q: What risks do stablecoin概念股 carry?
A: Key risks include regulatory reversal, technological obsolescence, overvaluation due to speculation, and lack of direct exposure to core stablecoin operations despite being labeled as "related" plays.
The Road Ahead
While regulatory tailwinds have accelerated market excitement, lasting value will emerge only when stablecoin applications extend beyond speculation into everyday finance—enabling seamless international commerce, financial inclusion, and interoperable digital economies.
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For investors, discernment is crucial. The current wave reflects both genuine innovation and frothy expectations. Those who distinguish between foundational players and peripheral beneficiaries stand to navigate this transformation most effectively.