: [Report] Accelerate Asia Stablecoins with Interoperability
Written by @xparadigms
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https://t.co/NCrao7x9ib
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Stablecoin is inevitable. The total stablecoin supply has grown significantly, reaching $225 billion in February 2025, with user adoption and transfer volumes also surging. Regulatory clarity in each countries is laying the foundation for further growth.
Asia is preparing for the stablecoin adoption. Different Asian countries are taking varied approaches, from government-driven initiatives in Japan and Hong Kong to institution-driven efforts in Singapore. Some countries like China and India are focusing on CBDCs instead of stablecoins.
Interoperability is also inevitable for stablecoins. Cross-chain functionality is essential for stablecoins to expand its TAM (Total Addressable Market). Issuers are adopting strategies like token frameworks (e.g. OFT by LayerZero), custom cross-chain infrastructures, and monitoring solutions to ensure seamless operation across multiple blockchains.
LayerZero leads in stablecoin interoperability. Many major stablecoin issuers are using LayerZero's OFT standard and customizable security stack. This allows for unified supply management across multiple chains and configurable security through Decentralized Verifier Networks (DVNs), with some issuers even running their own DVNs for greater control.
Asian countries now recognize that stablecoins are inevitable and their benefits are clear. However, Asian stablecoins must do more than focus on issuance. Stablecoins need to be used on-chain, and each blockchain ecosystem requires its own custom strategy, similar to a local business. To achieve this, interoperability isn't just optional, it's essential.
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▫️ The Proliferation of Stablecoin
▫️Asia is Preparing for the Inevitable Stablecoin
▫️Infra for the Stablecoins - From Issuance to Interoperability
▫️Interoperability Strategy for Stablecoins
▫️Case Study: How Stablecoins are Supported by LayerZero
▫️Looking Ahead - Asia is Late and Needs to Think Bolder with Interoperability