Crypto Assets are Thriving in Asia: Stablecoins, AI, and Regulatory Trends

In the past week, I met with multiple parties in Hong Kong and Singapore, attended events such as the Hong Kong Trade Delegation, the Hong Kong Consensus Conference, and a seminar on Web3 AI. This week was packed with activities and yielded great results.

It is worth mentioning that I participated in an investor exchange event sponsored by the U.S. Consulate, which brought together people from various sectors interested in investing in American companies and funds. Compared to previous years, institutional investors have a deeper understanding of Crypto Assets, and their areas of interest have greatly expanded.

Hot Topics

stablecoin and distributed physical infrastructure network ( DePin )

Stablecoins represent a trillion-dollar market opportunity and are equally attracting attention in Asia. Many believe that issuing stablecoins can yield profits. Currently, the annual trading volume of stablecoins has exceeded $33 trillion, surpassing the total of mainstream payment giants.

The DePin market is still in its early stages, but it has enormous potential. There are many private discussions about its application prospects.

Artificial Intelligence ( AI )

AI has always been a hot topic. The recent success of some projects shows that high-performance AI models can also be developed through moderate private investment. In the future, everyone may have their own AI agent to conduct transactions on the blockchain at internet speed. In this case, a fivefold increase in global transaction volume is not impossible.

AI will also drive more personalized services, a value-added feature that has yet to be fully explored. AI agents can enable users to perform complex operations with simple commands ( such as cross-border payments ), which will help Asian users overcome the limitations of traditional financial infrastructure and better integrate into the Web3 ecosystem.

Regulatory Trends

The regulation of Crypto Assets in the United States is gradually becoming clearer. Regulatory agencies have recently withdrawn lawsuits against some major Crypto Assets companies, which has created an optimistic outlook within the industry regarding the upcoming regulations. The certainty and support of regulation will form the foundation of this year's investment themes.

The openness of regulation will undoubtedly promote the expansion of American Crypto Assets companies into Asia, with Hong Kong expected to become an important gateway. Since 2022, Hong Kong has been increasingly supportive of Crypto Assets, launching Asia's first spot exchange-traded fund and issuing multiple licenses for virtual asset trading platforms. Regulatory agencies are also actively listening to the voices of the industry and are willing to support industry development through legislation.

Conclusion

Currently, Asian investors, operators, and users have unprecedented confidence in Crypto Assets. They hope to invest in and develop more applications to address the fragmentation issues of existing technologies, providing convenience in areas such as income, entertainment, travel, and payments. Stablecoins, AI, and regulation are key factors driving the development of the industry, which is also the fundamental reason many wish to enter the U.S. market. As long-term participants in the industry, we are confident in leading this new tide.