Citi: The market size of stablecoins in Hong Kong could reach $16 billion with further room for growth

According to a report by Hong Kong media Xin Bao, Citibank pointed out in an analysis report that by referencing the experience of mainland payment institutions, the user balances in mainland payment institutions are equivalent to about 20% of the cash in circulation in China, about 2.5% of demand and savings deposits, and about 0.8% of total deposits. It is expected that the market size of stablecoins in Hong Kong could reach $16 billion (approximately HKD 124.8 billion), fluctuating by $8 billion. If the total money supply continues to grow, along with increased demand from overseas users for Hong Kong stablecoins or a surge in on-chain activities, this scale will have further room for growth, benefiting issuers, trading platforms, and payment companies.

Previously, it was reported that the Hong Kong Monetary Authority may announce the first batch of stablecoin issuance licenses this month.