Asia’s Financial Hub Race Accelerates Amid Stablecoin Expansion

Singapore and Hong Kong, once uncontested as Asia’s financial hubs, now face intensifying competition as stablecoins redefine the region’s monetary landscape. The question of which jurisdiction will emerge as the leader remains open, with South Korea and Japan making strategic moves.

South Korea has shifted focus from central bank digital currencies (CBDCs) to private stablecoins, with the Financial Services Commission preparing a regulatory bill for October 2025. The Bank of Korea has established a digital asset team to bolster oversight. Major players like KakaoBank are eyeing retail payments and cross-border remittances as growth drivers, leveraging the country’s robust fintech infrastructure.

Japan, meanwhile, has solidified its position as a first mover with a comprehensive legal framework for digital assets. Its proactive approach sets a benchmark for regional adoption.