To The Moon

On June 17 2025, the U.S. Senate passed the GENIUS Act by a vote of 68 in favor and 30 against. The bill aims to establish a comprehensive federal regulatory framework for stablecoins pegged to the U.S. dollar.

It still needs to be approved by the House of Representatives and signed into law by the President to take effect.

Key Provisions of the GENIUS ACT:

• Asset-Backed Requirements: Stablecoins must be fully backed by U.S. dollars or other highly liquid assets.

• Regulatory Framework: Issuers of stablecoins will be subject to bank-like regulations, regardless of whether they are banks.

• Consumer Protection: The bill includes consumer protection clauses and anti-money laundering standards.

• Ban on Algorithmic Stablecoins: The bill directly prohibits algorithmic stablecoins.

• Restrictions on Foreign Issuers: Foreign stablecoin issuers must register and fully comply with U.S. regulations.

Since the legislative push for the GENIUS Act began, the blockchain sector has seen a surge in related stablecoin concepts across U.S., Hong Kong, and even mainland China's A-share markets.

Among these, the most market-focused stablecoin concept stock, $Circle Internet Corp.(CRCL)$ , has seen its share price double since its listing on June 6. However, on the day the bill passed, CRCL closed lower after a 13% surge the previous day, seemingly reflecting a "sell on news" sentiment.

Reasons Behind Circle's Surge

• Broad Industry Prospects: Stablecoins are seen as a crucial part of the future digital financial infrastructure. With the acceleration of global regulatory frameworks, the stablecoin market is poised for large-scale adoption.

• Compliance Advantage: Circle's strong compliance in the stablecoin space, particularly with its USDC, which is highly transparent and regulatable, gives it a competitive edge in the market.

• Market Scarcity: Circle is the first stablecoin issuer to go public in the U.S., making it a rare asset that has attracted significant investor attention.

• Reserve Asset Returns: Circle's reserve assets, primarily invested in U.S. Treasury bills and cash, grew to over $37 billion in 2024, with an average yield of 5.09% and total reserve income nearing $1.7 billion.

Amid the turbulent cryptocurrency market, stablecoins, as the "anchor of stability" in digital finance, are gradually becoming the focus of the market. Some U.S., Hong Kong, and mainland Chinese listed and unlisted companies are actively exploring related businesses.

Additionally, stablecoins are closely associated with $Bitcoin(BTC.USD.CC)$ , $Grayscale Ethereum Mini Trust ETF(ETH)$ , ChainLink (LINK), and Avalanche (AVAX), driving capital inflows and market preferences in these areas.

Why have stablecoins suddenly become the focus? What are stablecoins, what are their functions, and are they truly stable? How will they develop in the future? Which companies will also benefit?

The following is a compilation based on publicly available information.

I. Definition and Market Prospects of Stablecoins

• Definition and Origin: Stablecoins are mediums for cryptocurrency trading, pegged to assets. There are three main types: fiat-backed, crypto-backed, and algorithmic (unbacked). For example, a stablecoin pegged 1:1 to the U.S. dollar requires the issuer to hold $1 in reserve for each coin issued.

• Functions: They serve as mediums for digital currency transactions, mitigate the high volatility of cryptocurrencies like Bitcoin, avoid high foreign exchange fees, and can potentially be used in illegal activities such as underground banking (a key reason for regulatory crackdowns).

• Stability Case: The stablecoin market exceeded $250 billion in 2025, with USDT and USDC accounting for nearly 90%. However, the collapse of the algorithmic stablecoin LUNA three years ago serves as a cautionary tale. LUNA, with no collateral, saw its price plummet from $90 to $0.0001, wiping out billions in assets and resulting in a $4.5 billion fine for its founder.

  CryptoRank.io on X: "🇺🇸 Offshore stablecoins still dominate, but U.S. growth is accelerating Over the past year, U.S.-based stablecoins like $USDC and $PYUSD have more than doubled in supply, growing +104% to

• Stablecoins and U.S. Treasury Bonds : As of now, the total U.S. Treasury debt stands at approximately $36 trillion, with 80% of it being tradable. Short-term Treasuries maturing within one year account for 23.7%, medium-term (2-10 years) for 52.9%, and long-term (over 10 years) for 13.5%. The concentration in medium-term bonds creates significant interest payment pressure. In June of this year, around $1 trillion in Treasury debt is due for repayment.

  The GENIUS Act essentially regulates stablecoin issuance rather than directly issuing them, representing a reallocation of existing funds. The bill mandates that stablecoin issuers hold either 1:1 U.S. dollars or short-term Treasuries maturing within 93 days as reserves, making U.S. Treasuries a core underlying asset for stablecoins. The U.S. is effectively digitizing its debt through blockchain technology to expand the reach of the dollar.

  However, with the current stablecoin market size at $250 billion and projections of reaching $2 trillion by 2022, absorbing $400 billion in Treasuries annually, this is still a drop in the bucket compared to the total U.S. debt. Stablecoins cannot become a primary debt resolution tool.

  

The U.S. move is also seen as an attempt to establish a new Bretton Woods-like system to dominate the virtual world currency. Whoever wins will have the power to write the 21st-century "Digital Bretton Agreement," as history repeats itself.

Implications for Individual Investors: What does all this mean for ordinary investors?

Do you think this is a short-term speculation or a long-term value investment? Feel free to leave your comments below.

II. Selected Stablecoin-Related Stocks in U.S., Hong Kong, and A-Shares

2.1 U.S. Stocks Benefiting from Stablecoins

• $Circle Internet Corp.(CRCL)$ : Its listing is seen as a milestone in the stablecoin space, further driving the development of the U.S. stablecoin market. Year-to-date (YTD) increase: 381%.

• $Coinbase Global, Inc.(COIN)$ : Directly benefits from the growth of the stablecoin market. YTD increase: 2.2%.

• $PayPal(PYPL)$ : Its own stablecoin, PYUSD, is integrated with millions of merchants, and its cross-border payment volume is growing rapidly. It has significant potential in stablecoin cross-border payments. YTD decrease: 17%.

• $Visa(V)$ : Actively advancing stablecoin settlement services and planning to expand partnerships through its Tokenized Asset Platform (VTAP). Expected to benefit from stablecoin growth. YTD increase: 13%.

Additionally, Fidelity Investments, with its $5.8 trillion in AUM (Assets Under Management), plans to launch a U.S. dollar stablecoin in 2025, backed by its money market funds. Combined with its spot SOL ETF, it aims to establish a foothold in the stablecoin space.

Major financial institutions like $JPMorgan Chase(JPM)$ , $Bank of America(BAC)$ , $Citigroup(C)$ , and $Wells Fargo(WFC)$ are reportedly planning to issue a joint stablecoin.

Other companies of interest include $Wal-Mart(WMT)$ , $Amazon.com(AMZN)$ , and $Expedia(EXPE)$ , which are still in the exploration phase and have not yet launched stablecoin products but may benefit from cost reductions through this technology in the future.

2.2 Hong Kong Stocks Benefiting from Stablecoins

• $ZA ONLINE(06060)$ : The first digital bank in Hong Kong to provide reserve banking services for stablecoin issuers, in partnership with the sandbox enterprise, Circle Technology. The stock has surged over 70% since the end of May.

• $OSL GROUP(00863)$ : A Hong Kong-compliant virtual asset exchange that offers stablecoin yield products. The has maintained an upward trend, with a year-to-date increase of 62%.

• $CHINA EB LTD(00165)$ : One of the significant investors in Circle, participating in its Series D funding round. It has rebounded by 40% since the end of May.

• $LIANLIAN(02598)$ : Holds a Hong Kong VATP (Virtual Asset Trading Platform) license, supporting stablecoin cross-border settlements, with payment volume reaching 281.5 billion yuan in 2024. The stock price experienced significant price volatility at the end of May, doubling at one point.

• $CR HOLDINGS(01911)$ : The Huaxing New Economy Fund invested in $Circle Internet Corp.(CRCL)$ , which successfully listed on the NYSE. It has risen 30% since early June.

• $STANCHART(02888)$ : Collaborating with Animoca Brands and PCCW to explore stablecoin issuance and applying for HKMA's stablecoin issuance license. It has seen a year-to-date increase of 33%.

• $JD-SW(09618)$ : JD stablecoin is in the second phase of sandbox testing, pegged 1:1 to the Hong Kong dollar or U.S. dollar, and will benefit from the expansion of digital currency payment scenarios. It remains in negative territory for the year.

Additionally, due to Ant Group's intention to apply for a stablecoin license in Hong Kong, companies like $YUNFENG FIN(00376)$ and $BRIGHT SMART(01428)$ have also performed well due to their association with Ant Group.

2.3 A-Shares Benefiting from Stablecoins

• $Shenzhen Forms Syntron Information Co.,Ltd.(300468)$ A core service provider for the Hong Kong Monetary Authority's CBDC (Central Bank Digital Currency), its FINNOSafe platform supports stablecoin issuance and holds over 20 cross-border payment patents. It directly benefits as a first-batch technical service provider, cooperating with Bank of East Asia to test the Hong Kong dollar stablecoin, with a Q1 (Quarter 1) net profit increase of 20%. The price have doubled in less than a month.

• $Hyunion Holding Co.,Ltd.(002537)$ : Participates in the People's Bank of China's mBridge project, covering an 11-country cross-border payment network. It benefits from the expansion of the cross-border payment network. The price have seen gains of over 15% in two consecutive trading days.

• $Lakala Payment Co.,Ltd.(300773)$ : As a JD.com offline payment service provider, its 5 million POS terminals support stablecoin scanning. It benefits from the expansion of stablecoin payment scenarios. The stock price gains of over 15% in two consecutive trading days.

• $Hengbao Co.,Ltd.(002104)$ : Pioneered an offline cold wallet + chip-level key management solution, with leading quantum encryption technology. It is a digital currency hardware security module (HSM) supplier, supporting stablecoin offline signatures. It supports stablecoin wallet secure storage, with its Hong Kong subsidiary becoming one of the first technical service providers to access the licensing system, cooperating with JD.com on a cross-border SIM card payment solution. The

  stock had seven limit-ups in 13 trading days.

• $Shenzhen Emperor Technology Company Limited.(300546)$ : Deeply involved in the Hong Kong stablecoin pilot, providing digital identity authentication and key management services. Its technical solution passed Hong Kong's compliance review, with digital currency technology applied to public transportation scenarios, and a Q1 performance increase of 8,829%. The price have doubled in less than a month.

• $Chutian Dragon Co.,Ltd.(003040)$ : The technical provider for the first overseas launch of a digital RMB hard wallet, promoting the implementation of the mBridge scenario. It cooperates with Huawei and others to optimize cross-border settlements, has reserved stablecoin underlying technology, and a Q1 net profit increase of over ten times. The stock price soared from 14 to over 20 since June 5, currently trading at 18.

• $Tansun Technology Co.,Ltd.(300872)$ : Promotes stablecoin credit card recharge products, with mature technology and cooperation with Southeast Asia's leading vendors for overseas expansion. It deepens digital banking and AI technology applications, building an open fintech ecosystem, with high Q1 net profit growth. It has seen a maximum increase of over 56% since the end of May.

• $Guangzhou Kingteller Technology Co.,Ltd.(002177)$ : Digital currency ATMs support stablecoin two-way exchange, with a 60% reduction in transaction fees. It cooperates with JD.com to build a Middle East digital customs platform, with its technical framework adapted to Hong Kong's regulatory standards, and a Q1 net profit increase of 10%. It has had five consecutive trading limit-ups since the end of May.

• $Gcl Energy Technology Co.,Ltd.(002015)$ : On June 13, 2025, it officially added the "blockchain" concept. This innovative step in the energy service sector aims to enhance service capabilities and market competitiveness through blockchain technology. It has had four consecutive limit-ups in the last four trading days.

III. Investment Logic and Risk Warnings

• Regulatory Uncertainty: The GENIUS Act in the U.S. and the Stablecoin Ordinance in Hong Kong may increase compliance costs.

• Interest Rate Fluctuations: Profits for stablecoin issuers like Circle are highly sensitive to interest rate changes.

• Technological Obsolescence Risk: Some companies may fall behind due to inadequate technological adaptation or lack of qualifications.

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