Hong Kong's Stablecoin Market Potential Explored in Recent Report

According to Odaily, Bloomberg Industry Research has released a report examining the potential of Hong Kong's stablecoin market and its impact on the foreign exchange market. Analysts suggest that any stablecoin pegged to the Hong Kong dollar is supported by cash or cash equivalents in Hong Kong dollars, thus remaining influenced by the linked exchange rate between the Hong Kong dollar and the U.S. dollar. Even if the value of stablecoins remains stable during any potential adjustments to the linked exchange rate, the assets backing the stablecoins may require revaluation. The report indicates that future stablecoins in Hong Kong might be linked to real-world assets such as real estate. Furthermore, since stablecoin issuers must hold corresponding fiat currency, a large, tokenizable reserve of high-quality assets could drive the widespread adoption of stablecoins in Hong Kong. This new medium of exchange could also enhance the liquidity of Hong Kong's real-world assets.