Stablecoin momentum has picked up pace in the Asia Pacific region with Hong Kong and Malaysia planning subsequent roll outs in the coming months.
The moves come as the Asian nations compete to become crypto leaders, being neck-to-neck with the U.S., by adopting a cautious but optimistic approach towards crypto rules, especially stablecoins.
The moves show that regional regulators are shifting from discussion to experimentation, trying to balance innovation with financial stability.
The coordinated push also shows that people are becoming more convinced that stablecoins could be used extensively for payments and cross-border transfers.
Malaysia’s stablecoin pilot
Malaysia’s central bank wants to experiment with ringgit-backed stablecoins and tokenised bank deposits in 2026 to see how they actually work in the real world.
Officials are trying to understand whether these digital versions of money could affect payments, banking systems, or financial stability before giving them wider approval.
The trial will help regulators spot risks early and figure out what kind of rules are needed.
By the end of 2026, the bank hopes to publish clearer guidelines on how these digital assets can be used safely.
Hong Kong takes one step towards stablecoin licensing
Hong Kong is getting ready to hand out its first stablecoin licences as early as next month, taking another step toward building a regulated crypto hub.
But regulators are starting slow, only a small number of licences will be issued in the initial phase.
Officials say the cautious rollout will help them test how the system works in real markets, keep risks in check, and make sure approved companies meet strict compliance standards.
The move shows Hong Kong wants to support digital asset innovation, but without compromising financial stability or investor protection.
Asia-Pacific banks on crypto growth
It is interesting to note that both Hong Kong and Malaysia are taking a step forward towards the stablecoin regulation when the entire Asia-Pacific region has banked on crypto growth.
The Asia Pacific crypto market pulled in about $1.96 billion in revenue in 2025 and is projected to grow steadily at an annual rate of around 15.5 percent through 2033, showing continued regional momentum.
Hardware, including mining rigs, storage devices, and infrastructure, made up the biggest share of revenue last year, reflecting strong demand for physical crypto infrastructure.
However, software solutions such as trading platforms, analytics tools, and blockchain applications are expected to grow the fastest as adoption deepens and services expand.
Many countries have taken positive steps toward regulating digital assets in the race to become the crypto leader in Asian markets. The Monetary Authority of Singapore (MAS) is a good example of the trend. The organization takes a practical and “cautiously optimistic” approach. While the regulator encourages blockchain innovation, it strictly controls consumer risks and cryptocurrency speculation.
On the other hand, other large economies, such as China, have restricted the usage of cryptocurrencies and tokenized physical assets. China has prohibited the unapproved issuance of stablecoins associated with the yuan. Additionally, China has prohibited domestic companies from issuing digital tokens beyond China.
On the flip side, countries like India are struggling to think about what to do with this kind of asset class due to how cautious the RBI is being. Reserve Bank of India (RBI) against incorporating stablecoin assets in India’s financial system due to worries about monetary stability. However, discussion about stablecoins has started to grow in India due to interest from people worldwide about these tokens.