As August approaches, Hong Kong's "Stablecoin Ordinance" is set to take effect. Hailed as "the world's first comprehensive regulatory framework for fiat-backed stablecoins," this legislation has once again made stablecoins a hot topic. On one hand, well-known large companies are competing to apply for licenses and enter the field; on the other hand, many financial institutions are also gearing up, hoping stablecoins will become the next emerging business opportunity. Regarding this, we had a brief communication and discussion with Fu Zheng, General Manager of Brilliance Technology's Innovation Center.

〡 Stablecoins: Opportunity or Challenge?

Stablecoins are one of the successful implementations of RWA (Real World Assets). Their core lies in the digitization of real-world assets—using the immutability of blockchain technology to digitize and fractionalize real assets, tokenize them on-chain, and enable rapid circulation. In the first half of this year, the total market size of RWA exceeded $24 billion (a 380% increase from $5 billion in 2022), making it the second-largest growth direction besides virtual currencies. The performance of stablecoins in mainstream payment systems has also been remarkable: transaction volume in 2024 has reached 119% of Visa and 200% of Mastercard. As of the end of May, the average daily transaction volume has increased by about 52% compared to the same period last year.

In fact, stablecoins are not a new concept—the first mainstream stablecoin, USDT, was launched in 2014. Why have they gained market recognition and broken through in recent years? Fu Zheng stated: "The rapid development of stablecoins is primarily due to the maturity of blockchain technology. The three core features of blockchain—decentralization, consensus mechanisms, and encryption algorithms—lay the foundation of trust for the digital world. This 'consensus of trust' is precisely the key to stablecoins 'maintaining stability.' Secondly, technology often matures catalyzed by expanding demand. In the current market, investors need more diversified, highly liquid investment channels to diversify risks and enhance returns. Stablecoins can fractionalize large, hard-to-trade real-world assets, enabling smaller, more convenient, efficient, and low-cost transactions. Finally, the clarification of regulatory frameworks will attract more participants to join."

Stablecoins combine the dual advantages of fiat currency stability and blockchain efficiency, shining in cross-border payments and emerging markets. However, regulatory and compliance challenges must not be overlooked. In June 2025, Gongsheng Pan, Governor of the People’s Bank of China, explicitly emphasized in his speech "Reflections on Global Financial Governance" that emerging technologies like blockchain and distributed ledgers have spurred the rapid development of central bank digital currencies (CBDCs) and stablecoins, achieving "payment-as-settlement". These innovations fundamentally reshape traditional payment systems, significantly shortening cross-border payment chains while posing substantial challenges to financial regulation.

〡 Brilliance Technology: Leveraging Blockchain Strengths with Technical Reserves

"Blockchain application is one of the areas Brilliance excels in, especially the 'blockchain + finance' combination. Brilliance is a pioneering leader," said Fu Zheng. "From 2016 to now, we have obtained multiple invention patents and software copyrights related to blockchain with independent innovation. Our blockchain technology features self-controllability, flexible customization, rapid deployment, and good compatibility. At the same time, we possess a comprehensive technology stack covering domestic compliant alliance chains, private chains, and public chains, with strong compatibility and trustworthy cross-chain scalability."

Adhering to the combination of innovation and application has always been a key characteristic of Brilliance Technology's technical strategy. In October 2016, Brilliance's blockchain R&D achievements were first implemented—participating in the domestic letter of credit blockchain (BCLC) project, subsequently successfully applying blockchain technology innovation to the field of letter of credit settlement. Later, Brilliance went on to implement industry-significant projects such as the Forfaiting Blockchain (BCFT), supply chain finance blockchain, and certificate-type government bond blockchain, serving numerous domestic financial enterprises.

Fu Zheng stated: "We always keep an eye on the latest industry trends and changes in customer needs. For stablecoins, which everyone is particularly concerned about currently, we have also made corresponding technical preparations. This includes our comprehensive public chain capabilities, relevant R&D in privacy computing and zero-knowledge proofs, rich practical cases and experience in the NFT field, and capacity expansion based on this. We have the ability to develop contracts on various mainstream public chains and mint stablecoins, helping enterprises complete tasks such as asset-on-chaining."

"In addition, Brilliance Technology has accumulated over 20 years of expertise in international settlement," said Fu Zheng. "Our international settlement system not only supports mainstream global cross-border payment networks like SWIFT and the increasingly critical CIPS (Cross-Border Interbank Payment System) for RMB settlements, but also facilitates the multilateral Central Bank Digital Currency (CBDC) Bridge (mBridge). This enables a 'three-currency convergence' model integrating RMB, foreign currencies, and CBDCs. As market demands evolve, we will further upgrade the system—under full compliance to a 'four-currency convergence' model that includes stablecoins."