Dr. Xiao Feng, Chairman and CEO of HashKey Group, has stated that mainland China is poised to re-enter the global crypto market—starting with stablecoins—amid growing monetary competition worldwide. His comments came during a recent interview with industry expert Liu Feng, where he warned that cryptocurrency hype in Asia, especially around stablecoins, far outpaces cautious regulatory moves in Hong Kong.
Dr. Xiao, often called the “Father of China’s Blockchain,” explained that stablecoins represent much more than a new payment method. Instead, they mark a fundamental change in financial infrastructure by enabling efficient, peer-to-peer, real-time settlement. This innovation could reduce costs and boost transparency across the industry.
He clarified that stablecoins’ original purpose was to serve as a trading medium for volatile digital assets, not simply as everyday payment tokens. Looking ahead, he predicted that, after stablecoins, attention will shift to tokenized Real World Assets (RWA), with possibilities for mainstream Bitcoin acceptance down the line.
Hong Kong currently faces a sharp divide between surging interest in stablecoins and the caution of its regulators. Compliance and anti-money laundering (AML) remain top priorities for local authorities as the region aims to protect its status as a leading financial hub. Dr. Xiao argued that blockchain’s transparent transaction records could make crypto AML procedures even more robust than those in traditional finance.
Crucially, Dr. Xiao asserted that successful stablecoins must be built on permissionless public blockchains to ensure openness and broad adoption. He warned that stablecoins on closed, permissioned systems are unlikely to succeed.
He also sees fundamental changes underway as the market moves from digital-native tokens to so-called “digital twin” assets, which mirror real-world items on-chain. This transition will require regulated, onshore exchanges and could unlock a market worth trillions.
Notably, HashKey Chain and GF Securities (Hong Kong) have jointly launched the city’s first fully on-chain tokenized security, signaling a major leap forward in the tokenization of real-world assets (RWA) and blockchain-based financial innovation in Asia.
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