Rebuilding Financial Infrastructure: How Stablecoins Are Quietly Reshaping Global Value Flows?

Author: Alec Goh

In the digital age, financial infrastructure is being quietly rewritten - blocks interlock, and industries thrive together. At the core of this transformation is stablecoin - a cryptocurrency pegged to fiat currencies like the US dollar - which is evolving from a speculative tool into a key driver for cross-border transactions, liquidity acquisition, and programmable finance.

Once upon a time, the application scenarios for stablecoins were limited to niche areas within cryptocurrency exchanges. Today, in regions facing inflation or capital controls, they are driving remittances, trade financing, and even salary payments. As pointed out in HTX Ventures' research report "The On-Chain Extension of the Dollar: Stablecoins, Shadow Banking, and the Restructuring of Global Payment Weights", in markets such as Turkey, Argentina, Lebanon, and Nigeria, stablecoins have become a "lifeline"—their use is not speculative, but for preserving value, settling cross-border transactions, and obtaining dollar liquidity.

This transformation is not only on the behavioral level but also on the architectural level. As capital flows onto the blockchain, the infrastructure of the currency itself is being reconstructed. Processes that were previously completed through correspondent banks and SWIFT are now being realized through smart contracts and decentralized protocols, reducing costs and settlement times while enhancing transparency.

Programmable Value and Financial Synergy

In addition to speed and cost, programmability is redefining financial logic. Stablecoins can be embedded in smart contracts, automating compliance, custody, and interest payments—unlocking new collaborative mechanisms for capital. For SMEs and startups, this means being able to utilize financial tools that were previously only available to large institutions.

Platforms like Aave, Compound, and Curve have evolved into decentralized money markets, enabling the lending and swapping of stablecoins without intermediaries. This disintermediation not only enhances efficiency but also creates a demand for new types of trust mechanisms - driving the rise of on-chain proof, proof of reserves, and real-time auditing.

The emergence of "shadow currency" and systemic risk

As the scale of stablecoins expands, they also bring "shadow liquidity" into the global system. These are dollars that exist outside the traditional banking system—circulating through wallets, protocols, and APIs, yet backed by real-world assets (RWAs) such as short-term sovereign bonds. Stablecoins are increasingly used as collateral, yield instruments, or re-staked assets, introducing a hierarchical risk structure—similar in nature to shadow banking systems, albeit with greater transparency.

But transparency does not mean immunity. Risks such as over-collateralization, exploitation of smart contract vulnerabilities, and chain liquidations still exist—and are often amplified due to the composability of protocols. For stablecoins to achieve practical value on a global scale, systemic risk mitigation measures must evolve in tandem. This includes standardized audits, circuit breakers, and insurance mechanisms to control shocks in extreme situations.

HTX Ventures also pointed out that despite the increased visibility of smart contracts, the complex interdependencies between cross-chain bridges and DeFi protocols have introduced new systemic risks. These structures require protective measures at the same level as traditional financial markets—only they are built with a new language: code.

The patchwork of global regulation

The regulatory landscape remains fragmented. In the United States, the recently proposed "GENIUS Act" aims to establish a clear and unified framework for the issuance of stablecoins. The bill requires a 1:1 reserve backing in cash or short-term U.S. Treasury securities, real-time audit disclosures, and restrictions on algorithmic or uncollateralized stablecoins—marking an important step towards integrating stablecoins into the formal financial system.

At the same time, the European MiCA framework requires capital buffers and 100% reserve backing, while enhancing supervision and threshold setting for "significant" tokens. Practices vary across Asia. Singapore has introduced a licensing system for stablecoin issuers, focusing on the audit of reserves and redemption. Hong Kong is developing a regulatory sandbox, while Japan requires stablecoins to be issued through licensed banks or trust companies. In contrast, Nigeria has issued stern warnings against the use of stablecoins on the grounds of financial sovereignty.

For builders and investors, this patchwork pattern presents both regulatory risks and opportunities for first-mover advantages. Projects that actively align with emerging standards may find it easier to gain favor from institutions and payment service providers.

Stablecoins: The Wedge that Unlocks Real-World Usability

As the flow of value becomes increasingly digitized, stablecoins uniquely blend the native characteristics of cryptocurrency with real-world practicality. From dollar settlements in emerging markets to tokenized U.S. Treasury channels for global investors, their application scenarios are rapidly expanding across industries and continents.

A significant signal of stablecoins moving towards the mainstream is the listing of USDC issuer Circle on the New York Stock Exchange. As the first publicly listed major stablecoin issuer, Circle brings greater visibility and credibility to the space, helping to bridge the gap between regulatory compliance and institutional adoption. This milestone solidifies USDC's positioning as a transparent and regulated stablecoin—commonly used for corporate settlements, fintech platforms, and increasingly applied in tokenized asset channels.

This expansion is not happening in isolation. It is part of a broader trend towards "decentralized infrastructure equipped with institutional-grade protection measures." With the development of RWA, central bank integration, and compliance-focused centralized decentralized finance (CeDeFi), stablecoins are becoming the organizational link connecting the traditional economy with the decentralized economy.

The future is not only defined by code, but also shaped by those who can navigate policies, build trust, and design responsible scaling systems. In this sense, stablecoins are not just a payment tool - they are the foundational layer for reconstructing the flow, settlement, and growth of value in the digital world.

About the Author:

The author of this article is Alec Goh, head of the international investment department HTX Ventures of HTX, one of the world's leading cryptocurrency exchanges. Alec leads strategic investments in high-potential digital asset projects, focusing on infrastructure, compliance-first DeFi, and stablecoin ecosystems. He oversees mergers and acquisitions and investment work at HTX Ventures, assisting the company's global expansion and completing several notable projects in the industry. With a global financial background and extensive structured trading experience, Alec is dedicated to connecting institutional capital with the next generation of Web3 innovations.