There are two recent signals in the stablecoin sector worth paying attention to.

The first is that stablecoin regulation in Hong Kong is finally taking shape. The regulatory framework that has been on hold for more than half a year is now entering a substantive implementation phase. According to reports from Hong Kong media, the first batch of stablecoin licenses is expected to be issued in early 2026. This is a significant development for the entire sector—it at least proves that regulation is not simply about bans, but about establishing thresholds and building a controllable framework.

However, to be clear, in the short term, this is more about an increase in market expectations. Those who will truly benefit are projects with solid compliance foundations and real-world use cases. Fintech, cross-border payments, and compliant settlement are likely to benefit, but purely trend-following conceptual projects are another story.

The second signal comes from the actions of the central bank. On Christmas Eve, the central bank, together with eight other ministries, clarified plans to promote digital yuan in cross-border payments and international settlements. Pilot programs are already underway with countries like Singapore, Thailand, the United Arab Emirates, and Saudi Arabia. What does this mean? In the future, cross-border settlements can be directly completed using digital yuan, offering faster speeds, lower costs, higher security, and backed by the credibility of the central bank.

Together, these two developments help us understand why market structures are quietly changing. Compared to this, traditional USDT is facing increasing regulatory pressure and trust challenges, and the market environment is no longer what it used to be. The competition landscape for stablecoins is entering a new phase.