Asian Stablecoins: Current Adoption by Institutions and Digital Asset Infrastructure, Conversation with Fireblocks Amy

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Institutions are stepping into a brand new era of digital assets—which links should be on-chain, and which can still remain off-chain? In this episode of “Clearing Spotlight,” we invite Amy Zhang, Head of Fireblocks Asia-Pacific, to discuss how tokenization, smart contracts, and blockchain can significantly improve the efficiency and security of asset transfers while institutions maintain strict internal approval processes. This conversation delves into how to balance Web2 approval workflows with on-chain asset transfers, and why more and more institutions are choosing to run both in parallel, leveraging each’s strengths.

Host: Hello everyone, welcome back to “Clearing Spotlight.” Here, we focus on how the market moves forward in complex environments, and how financial institutions respond to liquidity risks and infrastructure changes. Thank you for tuning in again. Today, our guest is Amy Zhang, Head of Fireblocks Asia-Pacific. Amy, how have you been lately?

Amy Zhang: I’m doing well, thank you. How about you?

Host: I’m great as well. It’s a pleasure to connect with you, and you’re our first female guest on this podcast.

Amy Zhang: Really? That’s an honor.

Host: Let’s start with a brief introduction about yourself and Fireblocks.

Amy Zhang: Sure. Hello everyone, I am Amy, currently responsible for Fireblocks’ Asia-Pacific operations. I’ve been with Fireblocks for five and a half years. When I first joined, the company was still quite small. In the initial year, we mainly focused on validating a question: whether the success Fireblocks achieved in Europe and the US would also apply to the Asia-Pacific region. If we wanted to continue investing in Asia-Pacific, what should our strategy be? And how to ensure clients receive full local support?

We quickly realized that Asia-Pacific clients indeed need products and features similar to those of European and US clients, but the real key is localization—building teams locally and providing support close to the clients.

Today, Fireblocks serves over 2,400 clients globally; nearly 500 in Asia-Pacific, with a very diverse client base—from small crypto trading teams to the world’s largest banks and asset managers, covering almost all types.

Adoption of Stablecoins in Asia

Host: How would you describe the current state of stablecoin adoption in Asia? What is driving this momentum?

Amy Zhang: One of the most important changes is the shift in “trust structures.” It can be said that, since the establishment of modern financial systems, this is the first time—billions of dollars are transferred, ledgered, and settled daily without direct involvement of traditional banks or financial institutions.

Breaking down the sources of this trust, there are mainly three aspects.

First, improved regulatory clarity. Most Asian countries have either established stablecoin regulatory frameworks or are in the process of doing so. This has seen significant changes over the past year.

Second, technological maturity. The industry has experienced security incidents over the past year, but these events have also driven the maturation of technology and infrastructure, helping institutions understand how to interact safely with blockchain and digital assets.

Third, liquidity convertibility—that is, whether institutions can directly perform on-ramps and off-ramps, including primary issuance and redemption, and access sufficient secondary market liquidity. This makes stablecoins truly usable assets, enabling merchants to conduct cross-border fund flows very efficiently.

The Essence of Stablecoins: Combining Information and Settlement

Host: If you were to explain stablecoins to someone encountering them for the first time, how would you define them in the simplest way? Why are they so important for institutions?

Amy Zhang: It can start with “how money flows.” When you and I transfer funds, there are actually two levels: first is the information layer—me telling you I want to transfer a certain amount; second is the settlement layer—the bank actually transferring money from my account to yours.

In traditional systems, this process involves many intermediaries, including payment service providers, clearinghouses, etc. Banks have always been in the middle because historically, funds are stored in banks, which also bear risk management responsibilities.

The balance you see in your bank account does not equal the actual cash held by the bank. Banks operate under fractional reserve systems, managing risks between “booked 1 dollar” and “the 1 dollar the other party receives.”

The fundamental difference with stablecoins is that information and settlement are completed within the same transaction. The core value this brings is efficiency. The time delays in cross-border payments have long been a pain point, but stablecoins can enable instant settlement, saving time, reducing costs, and creating new revenue opportunities.

This is why early adopters of stablecoins are industries with high working capital needs, such as bulk commodity traders and shipping companies. If they can turn over 100 million USD ten times a day, their efficiency and returns are entirely different.

Additionally, in most regulated jurisdictions, stablecoins are backed 1:1 by high-liquidity assets like USD, not fractional reserves held by banks.

Do Stablecoins “Surpass” Traditional Cross-Border Systems?

Host: It’s often said that stablecoin trading volume is surpassing traditional cross-border payment systems. What’s your view?

Amy Zhang: I don’t think it has fully surpassed them yet. In 2024, the total scale of traditional cross-border capital flows is about 200 trillion USD, while stablecoin transfers are around 20 trillion USD, still only one-tenth. More importantly, this 20 trillion mainly does not come from traditional industries.

What’s really happening is that some long-neglected sectors of traditional cross-border systems are naturally shifting toward stablecoins. The earliest were crypto trading industries, which require 24/7, instant, large-value settlements, and were almost “excluded” by banks in the early days. Then came new economic models: e-commerce platforms, creator economies, digital businesses. These companies need to pay large numbers of individuals globally, and traditional banking systems are costly and operationally complex. Further along are high working capital industries like bulk commodities, shipping, and precious metals trading.

Why Regulation is a Catalyst for Adoption

Host: IMF data shows that Asia-Pacific leads global stablecoin activity in 2024. You also mentioned before that regulation is a key catalyst for adoption. Can you elaborate?

Amy Zhang: The most valuable aspect of regulation is certainty.

First, at the issuance level: which stablecoins are legally permissible? Are they recognized? Second, at the balance sheet level: if banks or PSPs hold stablecoins, how should they be recorded and how to measure risk?

Currently, Singapore and Hong Kong are consulting on this, clarifying the positioning of stablecoins on banks’ balance sheets. Without clear rules, institutions cannot scale operations.

Fusion of Traditional Finance and Crypto Finance

Host: More and more traditional financial institutions are exploring stablecoins. What changes are happening in mainstream finance?

Amy Zhang: We are witnessing a two-way integration of TradFi and crypto finance.

Banks and PSPs are thinking about how to incorporate stablecoins as a new payment track into existing systems. If a bank is not a partner for mainstream stablecoins, it is effectively losing deposits.

For PSPs, stablecoins are just another rail, but with lower costs, higher profit margins, and the potential for new business lines. Meanwhile, native crypto institutions are issuing tokenized securities and receiving very positive market feedback.

Real-World Implementation of Web2 Approval × Web3 On-Chain: How Do Institutions Actually Do It?

Host: How do institutions balance innovation and risk management, especially in on-chain treasury and payment systems?

Amy Zhang: The reality is that not all processes need to be on-chain.

Approval, permissions, risk management—many institutions already have very mature Web2 internal systems. They usually complete these processes off-chain, and after approval, leverage secure infrastructure like Fireblocks to move assets on-chain. This creates a division of labor:

Web2: approval, permissions, risk control

Web3: issuance, transfer, settlement

Interbank internal settlements are often done on private or permissioned ledgers; when interaction with the public ecosystem is needed, assets are moved onto public chains.

Digital Asset Treasury Management

Host: Many people think of Bitcoin when talking about digital assets, but treasury management is much broader. What’s your view?

Amy Zhang: A simple example: a trading company has 1 million USD in working capital, usually just kept in a bank account as a buffer. Now, it can convert this money into stablecoins, access on-chain money market funds for yield; when needed, convert back to USDC for global payments. This is essentially how crypto trading firms manage their treasury today, and traditional companies are just beginning to understand this. Of course, some listed companies include BTC and ETH as part of their asset allocation, which also makes sense from a long-term return perspective.

Host: When companies diversify their treasury, are they only focusing on BTC and ETH?

Amy Zhang: It depends on the purpose. Some companies aim for capital market narratives; others are very pragmatic—using stablecoins to optimize working capital efficiency. The ultimate question is: what tangible benefits can stablecoins bring to the enterprise?

Host: Hong Kong’s policies on stablecoins and digital finance are very proactive. How do you see its positioning?

Amy Zhang: You can’t talk about Hong Kong without mentioning China. Hong Kong and China are among the world’s largest capital corridors. If compliant stablecoins can play a role in this, it would be very meaningful. Additionally, Hong Kong has a huge capital market volume and natural advantages in securities and bond tokenization; it is also one of the few jurisdictions allowing the simultaneous offering of crypto assets and security tokens on the same platform.

Host: Finally, what advice would you give to financial executives or entrepreneurs who are still hesitant about adopting stablecoins?

Amy Zhang: First, view stablecoins as an additional new track, not a negation of the existing system. Second, don’t fear regulation. Regulation itself is an opportunity. In the past, only banks could do certain things, but now PSPs and brokerages can participate, opening huge business opportunities. Banks won’t ignore this trend; they are also upgrading capabilities to support client needs in the stablecoin era.

Host: Thank you very much, Amy, for sharing your deep insights on stablecoins and digital asset treasury management. Thanks to all listeners. We are “Clearing Spotlight,” continuously bringing you clear market perspectives. See you next time.