The global stablecoin wave is gaining momentum, with the U.S. and China at the forefront of adoption and innovation. The surge began with Circle — often dubbed the "first stablecoin IPO" — whose valuation skyrocketed by nearly 800% post-listing. Meanwhile, in Hong Kong, financial stocks like Guotai Junan International saw intraday spikes of up to 198%, signaling strong market confidence in digital asset integration.
As regulatory frameworks mature across key markets such as the United States and Hong Kong, the stablecoin ecosystem is accelerating into a new phase of growth. No longer confined to crypto-native platforms, stablecoins are expanding into real-world payment solutions, cross-border transactions, and enterprise finance — driving both market size and transaction volume to record levels.
Amid this shift, Dmall Digital (02586.HK), a leading retail digitalization service provider, is preparing to enter the regulated stablecoin space by applying for a virtual asset license in Hong Kong. This strategic move positions the company at the intersection of traditional commerce and Web3 innovation.
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Strategic Foundations: Why Dmall Digital Is Well-Positioned
Dmall Digital’s entry into the stablecoin arena isn’t impulsive — it’s rooted in a series of calculated partnerships and internal preparations. On February 5, the company announced a strategic collaboration with HashKey Group, one of Asia’s most influential blockchain ecosystems. Under the agreement, Dmall Digital established a trading account on HashKey Exchange, Hong Kong’s largest licensed virtual asset trading platform.
This partnership focuses on three core areas:
- Digital asset trading
- Web3 technology development and application
- Blockchain ecosystem expansion
With HashKey Exchange reporting over HK$600 billion in total trading volume and more than HK$10 billion in on-platform capital retention, the alliance gives Dmall Digital immediate access to institutional-grade infrastructure and deep liquidity pools.
Beyond infrastructure, Dmall Digital has been actively building its Web3 talent pipeline. According to Tommy Tang, Vice President and CFO of Dmall Digital, the company has recruited professionals from top-tier crypto exchanges such as Amber Group and Crypto.com. These hires bring critical expertise in compliance, smart contract security, and decentralized finance (DeFi) operations — essential components for launching a credible stablecoin.
Tang emphasized that Dmall Digital already holds Bitcoin in its treasury, reflecting its long-term commitment to digital assets. “We see crypto not just as an investment,” he said, “but as a strategic pillar that will shape the future of global retail finance.”
Bridging Retail Commerce and Blockchain Payments
One of Dmall Digital’s greatest advantages lies in its existing client base: thousands of retailers across China and international markets. These businesses face recurring challenges in cross-border procurement, local payment processing, and supply chain financing — pain points where stablecoins offer compelling solutions.
Stablecoins can:
- Reduce transaction fees by up to 70% compared to traditional wire transfers
- Enable near-instant settlement across borders
- Minimize exposure to currency volatility through fiat pegs
- Streamline reconciliation processes via transparent blockchain ledgers
For retailers sourcing goods from overseas suppliers, using a regulated stablecoin could eliminate multi-day clearing times and high intermediary costs. At the same time, consumers benefit from faster checkout experiences and potentially lower prices due to reduced operational overhead.
“We serve clients with real-world transaction needs,” Tang noted. “Stablecoins aren’t just speculative tools — they’re practical instruments that enhance efficiency, cut costs, and improve user experience.”
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Hong Kong’s Vision: Becoming a Global Virtual Asset Hub
Dmall Digital’s timing aligns perfectly with Hong Kong’s broader ambitions to become a global virtual asset hub. Since releasing the Hong Kong Virtual Asset Development Policy Statement in 2022, the government has taken decisive steps to create a balanced regulatory environment that fosters innovation while protecting investors.
Key milestones include:
- Introduction of a dual licensing regime for virtual asset trading platforms
- Launch of the world’s first government-backed tokenized green bond
- Approval of Asia’s first spot virtual asset ETFs and inverse futures products
The latest development — the formal enactment of the Stablecoins Ordinance (Cap. 656) — marks a turning point. Published in the Gazette on May 30, 2025, the ordinance establishes a comprehensive licensing framework for stablecoin issuers operating in or targeting Hong Kong. The law officially comes into effect on August 1, 2025, giving firms like Dmall Digital a clear regulatory pathway.
Under the new rules, authorized stablecoin issuers must:
- Maintain full reserves denominated in eligible currencies (e.g., USD, HKD)
- Conduct regular third-party audits
- Ensure redemption rights for holders
- Comply with anti-money laundering (AML) and know-your-customer (KYC) standards
This level of oversight enhances trust among institutional players and paves the way for broader adoption in traditional finance.
Global Stablecoin Landscape: Growth Trajectory and Use Cases
As of May 31, 2025, the total market capitalization of stablecoins reached approximately $247.4 billion, growing at a compound annual rate of around 38% over the past two years. Analysts refer to this inflection point as the “tipping point” — where stablecoins transition from niche crypto tools to mainstream financial infrastructure.
Core Advantages Driving Adoption
1. Cross-Border Payments
Compared to traditional SWIFT transfers — which often take 3–5 business days and involve multiple intermediaries — stablecoin transactions settle in minutes at a fraction of the cost. For businesses engaged in international trade, this efficiency translates into improved cash flow and scalability.
2. On-Chain Trading & DeFi Integration
According to Binance data, over 90% of cryptocurrency trades are executed using stablecoins as intermediaries. Major trading pairs like BTC/USDT or ETH/USDC dominate volume charts. Moreover, stablecoins serve as the primary collateral in decentralized lending protocols and yield-generating platforms.
3. Financial Inclusion & Programmability
Smart contract-enabled stablecoins allow for automated payments, conditional disbursements, and embedded compliance — features especially valuable for supply chain finance and micropayments.
With increasing regulatory clarity in jurisdictions like Hong Kong and Singapore, institutional participation is expected to rise significantly over the next 18–24 months.
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Frequently Asked Questions (FAQ)
Q: What is a stablecoin?
A: A stablecoin is a type of digital currency designed to maintain a stable value relative to a fiat currency (like USD or HKD). It combines the speed and accessibility of blockchain with the price stability of traditional money.
Q: Why is Hong Kong regulating stablecoins now?
A: To support its goal of becoming a global virtual asset hub, Hong Kong is establishing clear rules to ensure financial stability, protect consumers, and attract compliant innovators — balancing growth with risk management.
Q: How does Dmall Digital plan to use stablecoins?
A: By leveraging its retail network, Dmall Digital aims to offer efficient cross-border payment solutions for suppliers and merchants, reducing costs and settlement times through regulated stablecoin transactions.
Q: Are stablecoins safe?
A: Regulated stablecoins backed by transparent reserves and subject to audit — like those planned under Hong Kong’s new ordinance — are considered far safer than unregulated alternatives.
Q: Can individuals use these stablecoins?
A: Initially focused on B2B applications, enterprise-issued stablecoins may eventually extend to consumer-level use cases such as loyalty programs or instant remittances.
Q: When will Dmall Digital launch its stablecoin?
A: While no official launch date has been announced, the company is actively preparing for licensing under Hong Kong’s Stablecoins Ordinance, effective August 1, 2025.
By merging its deep roots in retail digitization with emerging blockchain capabilities, Dmall Digital is positioning itself as a pioneer in bringing real-world utility to digital assets. As regulatory frameworks solidify and use cases expand beyond speculation, stablecoins are poised to redefine how value moves across borders — and companies like Dmall Digital are leading the charge.