Why are stablecoins so popular? How can enterprises choose suitable and secure stablecoins for cross-border payments? | Overseas Exploration

Generally, a cross - border transfer takes 1 - 5 days to reach the recipient's account after passing through several banks. A single exchange rate fluctuation may cause a company to lose millions in profits. For a long time, "slow processing time" and "large exchange rate fluctuations" have been the two major pain points in the payment industry. The emergence of stablecoins is changing this situation. There is no need for multiple intermediate banks, and real - time peer - to - peer transfers can be achieved. Transactions can even be conducted within an app...

On May 21, 2025, the Hong Kong Special Administrative Region Government of China passed the "Stablecoin Bill", which will come into effect on August 1, 2025. Major enterprises such as Ant Group, Standard Chartered, and JD.com have started to make their moves. Some focus on cross - border payments, some delve into B2B transactions, and some target the Asia - Pacific and African markets. The application market for stablecoins is gradually unfolding.

However, how can the "stability" of stablecoins be guaranteed? What are the core differences between stablecoins and traditional virtual currencies such as Bitcoin? What advantages do stablecoins have compared with traditional cross - border payment methods? To answer these questions, we had a special conversation with Jiang Bo, an expert in cross - border business at a financial institution, to analyze the development of stablecoins and their application prospects in the overseas market.

【Interviewee: Jiang Bo, an expert in cross - border business at a leading domestic financial institution, with years of experience in the finance and cross - border payment industries.】

01 How do stablecoins solve the pain points of traditional cross - border payments?

Zhejiang Enterprises Going Global: Why has stablecoin received such high attention? Why did Hong Kong introduce the "Stablecoin Bill" at this time?

Jiang Bo: Slow payment processing time and large exchange rate fluctuations have been two long - standing problems in the traditional cross - border payment field. With traditional cross - border payment methods, it may take 1 - 3 days or 3 - 5 days for funds to be remitted from an overseas bank to a domestic bank. Secondly, for large - scale companies, a single - day exchange rate fluctuation may affect the company's profits by millions. Many people want to change these situations, and that's why stablecoins came into being.

The reason why Hong Kong is introducing stablecoins now is, on the one hand, to help us cope with the risks of the US dollar hegemony and the global exchange rate system. After years of development, stablecoins have become relatively mature and are suitable for commercial deployment.

Zhejiang Enterprises Going Global: What are the core differences in mechanism between stablecoins and traditional virtual currencies such as Bitcoin? How do stablecoins ensure "stability"?

Jiang Bo: The mechanisms of stablecoins and Bitcoin are different. Bitcoin is decentralized, while stablecoins require fiat currency or high - value assets as the basis for exchange. That is to say, the issuers of stablecoins need to deposit corresponding assets in compliant banks, which is the core reason for the "stability" of stablecoins.

Zhejiang Enterprises Going Global: Why does Ant Group focus on the markets of Hong Kong, Singapore, and Luxembourg in its stablecoin layout?

Jiang Bo: Hong Kong, Singapore, and Luxembourg are all markets with relatively complete global financial systems and relatively mature regulatory capabilities. Hong Kong has clear regulatory rules for stablecoins, Singapore has a relatively open attitude towards innovative finance, and Luxembourg is the compliance gateway for the EU. Therefore, they focus on these three relatively open and inclusive places for pilot projects.

Zhejiang Enterprises Going Global: Currently, many large institutions and enterprises are deploying stablecoins. What are the differences in the focus and use of stablecoins issued by different issuers?

Jiang Bo: JD.com issues stablecoins through JD Coin Chain Technology, mainly aiming to connect the Asia - Pacific, Middle East, and African markets with stablecoins. It can directly conduct transactions with Southeast Asian suppliers using its own - issued stablecoins, achieving minute - level transfers. Ant Group focuses more on cross - border finance and cross - border payment services. For example, Ant International focuses on cross - border payment services and supply - chain finance. Standard Chartered Bank currently focuses on cross - border B2B payments.

02 With over 300 stablecoins on the market, how should overseas - going enterprises choose?

Zhejiang Enterprises Going Global: What are the different pain points of large enterprises and small and medium - sized merchants in cross - border payments?

Jiang Bo: Large enterprises mainly focus on exchange rate fluctuations because each transaction involves tens of millions of dollars. Secondly, the timeliness of remittance is also very important. Small and medium - sized enterprises may be more concerned about the handling fee cost.

Zhejiang Enterprises Going Global: Compared with traditional cross - border payment methods, what advantages do stablecoins have in terms of payment efficiency and cost?

Jiang Bo: In terms of efficiency, stablecoins do not require the participation of multiple intermediate banks and can achieve real - time peer - to - peer transfers. In the future, people can directly conduct transactions with stablecoins in apps. Moreover, the cross - border payment time can reach the minute - level, which is crucial for cross - border e - commerce merchants. The回款周期 (payment collection cycle) of Amazon merchants is generally 7 - 15 days. Higher payment efficiency helps ensure stable cash flow and improve the efficiency of capital utilization.

In terms of cost, the handling fee of stablecoins is only about one - tenth of that of foreign trade transactions, or even lower. The advantage is very obvious in high - frequency and small - value order scenarios. From the customers we have contacted, cross - border e - commerce merchants and enterprises engaged in digital service exports are more willing to try stablecoins, mainly because they see the advantages of stablecoins in terms of efficiency and cost.

Zhejiang Enterprises Going Global: What are the potential risks of stablecoins? With over 300 stablecoins on the market, how should enterprises with cross - border payment needs choose a suitable and safe stablecoin?

Jiang Bo: Currently, stablecoins issued by different platforms solve different problems. Some solve trade problems, some solve timeliness problems, and some solve arbitrage issues. Enterprises should choose according to their own business scenarios. There are so many stablecoins now, each with its own focus and service scenario. For example, if a merchant only needs to exchange US dollars for Hong Kong dollars, they can choose Hong Kong dollar or US dollar stablecoins.

In addition, the security of stablecoins should be evaluated from two aspects: First, is the issuer operating with a license? Is it endorsed by the government and regulatory agencies? Second, liquidity. After purchasing a stablecoin, it should be able to be cashed out at any time. For example, USDT and USDC are the most commonly traded stablecoins on the market, and many of them can be cashed out on the same day. Enterprises can learn about the specific information of stablecoins through the official channels of the issuers or consult banks or financial institutions.

This article is from the WeChat official account "Hangzhou Qiantang Enterprise Overseas Service Base". Author: Zhejiang Enterprises Going Global. Published with authorization from Qiantang.