Huobi Growth Academy | Global Stablecoin Strategy In-Depth Research Report: From Dollar Hegemony to Financial Operating System

Stablecoins are undergoing a structural penetration, with market capitalization nearing $300 billion and 99.5% dollar-denominated, driven by real-world adoption in cross-border payments and emerging credit infrastructure. This growth is underpinned by robust regulatory clarity from the US "GENIUS Act," EU MiCA, and Hong Kong's Stablecoin Ordinance, which mandate high-liquidity reserves and transparency. Strategically, the US is leveraging dollar stablecoins to extend dollar hegemony, generate significant demand for US Treasuries, and establish global regulatory standards. While non-dollar stablecoins face an uphill battle against dollar dominance, regional efforts in the EU and Japan are creating localized, compliant ecosystems. Investment opportunities are shifting towards cash flow-driven models in issuance, settlement, and RWA tokenization, though systemic concentration in dollar assets, regulatory repricing, and potential CBDC crowding-out present notable risks.

Analysis

The stablecoin market is experiencing significant structural penetration, with total volume nearing $300 billion and exhibiting 99.5% dollar-denominated dominance, reflecting historical highs. This growth is driven by expanding real-world adoption in cross-border payments and B2B transfers, with Morgan Stanley noting Turkey's stablecoin payments exceeding $63 billion in 2024. Visa also highlights their evolution into cross-border credit infrastructure.

Regulatory clarity is a primary catalyst, with the US "GENIUS Act" (effective July 2025), EU MiCA (end-2024), and Hong Kong's "Stablecoin Ordinance" (August 2025) establishing robust frameworks. The US strategically leverages dollar stablecoins to reinforce dollar hegemony, with JPMorgan projecting an additional $1.4 trillion in dollar demand by 2027, and to provide a stable buying force for US Treasuries.

Despite non-dollar stablecoins holding less than 1% market share, regional initiatives are emerging, driven by sovereign resilience. The EU, under MiCA, saw euro stablecoin (EURC) growth of 155% in 2025, and Japan's "trust-based strong regulation" model led to JPYC approval by Mitsubishi UFJ Trust, targeting 1 trillion yen issuance.

Investment opportunities are shifting from speculative token prices to cash flow-driven models, focusing on compliant issuers, settlement networks, and Real-World Asset (RWA) tokenization. Key risks include systemic concentration in dollar stablecoins (99.5%), potential regulatory repricing, and the crowding-out effect from central bank digital currencies (CBDCs).

Key Decisions for Investors

• Prioritize investments in stablecoin issuers, settlement networks, and RWA tokenization platforms demonstrating robust compliance under established regulatory frameworks like the US GENIUS Act, EU MiCA, and Hong Kong's ordinance.
• Monitor the systemic risk associated with the extreme 99.5% dollar stablecoin concentration, considering potential impacts from US regulatory shifts or technical events.
• Evaluate strategic opportunities in non-dollar stablecoin ecosystems, particularly in the EU (e.g., EURC growth under MiCA) and Japan (e.g., JPYC by MUFG), for regional diversification and sovereign resilience plays.
• Assess the potential for Central Bank Digital Currencies (CBDCs) to crowd out private stablecoins in local currency scenarios, impacting long-term market share and utility.
• Shift investment focus from speculative token price movements to cash flow-driven business models, emphasizing entities generating stable revenue from reserve asset interest, payment commissions, and compliance dividends.