The global financial landscape is undergoing a profound transformation, driven by innovations in digital currencies and blockchain technology. As stablecoins redefine cross-border payments and real-world asset (RWA) tokenization reshapes investment paradigms, new opportunities emerge for the internationalization of the Chinese yuan (RMB). This article explores how advancements in digital assets and central bank digital currency (CBDC) development—particularly digital RMB—can accelerate RMB’s role in global finance, while maintaining regulatory prudence and strategic foresight.
Stablecoin Payments: Efficiency and Inclusion in Global Transactions
Stablecoins have rapidly evolved into a powerful tool for cross-border payments, offering speed, low cost, and accessibility unmatched by traditional banking systems. In 2024, annual stablecoin transaction volumes reached $15.6 trillion, surpassing Visa’s volume by 119% and Mastercard’s by 200%. While a significant portion of these transactions supports automated crypto trading, their use in real-world payments is growing—especially in business-to-business (B2B) transfers.
Over the past year, B2B stablecoin payments exceeded peer-to-peer (P2P) transfers, reaching $3 billion compared to $1.5 billion. This shift reflects increasing institutional adoption, particularly among firms engaged in international trade and remittances. Traditional bank wire transfers often take up to five business days, with about 30% requiring more than 24 hours to settle. In contrast, blockchain-based payments complete within an hour—many in seconds.
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For small-value remittances—such as a $200 transfer—traditional channels incur average fees exceeding 5%, amounting to over $10 per transaction. By comparison, blockchain-powered transfers via stablecoins cost as little as $0.00025, according to Binance Research. This dramatic cost reduction opens doors for financial inclusion, especially in developing regions where banking infrastructure is limited. Freelancers, NGOs, and migrant workers benefit from faster, cheaper access to global markets.
Geographically, the U.S., Singapore, and Hong Kong account for nearly half of all stablecoin flows. On chains like Polygon, BSC, and Solana, over 50% of transactions are under $100, underscoring stablecoins’ strength in microtransactions.
Regulatory frameworks are adapting. Countries including the U.S., EU members, and Switzerland have implemented licensing regimes for Web3 payment providers, emphasizing anti-money laundering (AML) compliance and consumer protection. These measures aim to balance innovation with risk control—a model others may follow.
Stablecoin Investment Applications: The Rise of Real-World Assets (RWA)
Beyond payments, stablecoins are unlocking new investment frontiers through real-world asset (RWA) tokenization—the process of converting physical or financial assets into blockchain-tradable tokens. Unlike volatile cryptocurrencies, RWAs are backed by tangible value—bonds, real estate, private credit—making them more appealing to conservative investors.
Stablecoins themselves represent one of the most successful RWA implementations. USDT and USDC maintain parity with the U.S. dollar through reserve holdings, combining blockchain efficiency with fiat stability. As of mid-2025, the total market capitalization of stablecoins exceeded **$238 billion**, with monthly trading volumes near $2.8 trillion.
When excluding stablecoins, the largest RWA categories include private credit ($13.8 billion) and U.S. Treasury bonds ($7.37 billion). Tokenized government debt offers compelling advantages:
- 24/7 trading: Unlike traditional markets with fixed hours, blockchain platforms enable round-the-clock transactions.
- Lower costs: By reducing reliance on intermediaries like custodians and brokers, transaction fees decline.
- Automated processes: Smart contracts handle coupon payments, compliance checks, and redemptions automatically.
- Enhanced transparency: All transactions are immutably recorded, improving auditability and trust.
A landmark example is BlackRock’s BUIDL fund, a tokenized U.S. Treasury fund launched in early 2024. Within months, it attracted over $1.6 billion in inflows over a 90-day period. Issued as ERC-20 tokens on Ethereum with whitelisted addresses for compliance, BUIDL allows investors to redeem at par (1 token = 1 USD), with interest disbursed shortly after.
Other notable projects include WTGXX and OUSG, contributing to a growing ecosystem of digital bond funds. The U.S. dominates this space, accounting for 84% of issuance value, followed by offshore jurisdictions like the British Virgin Islands and Cayman Islands.
Europe lags behind but shows promise. France leads regional efforts through Spiko, a fintech firm managing a $200 million tokenized sovereign debt fund. Meanwhile, Hong Kong has emerged as Asia’s RWA hub.
In February 2023, Hong Kong issued its first tokenized green bond, streamlining issuance from T+5 to T+1 settlement using distributed ledger technology (DLT). A second issuance in 2024 totaled HK$6 billion across four currencies (HKD, CNY, USD, EUR), attracting institutional investors globally.
To support innovation, the Hong Kong Monetary Authority (HKMA) introduced the Digital Bond Grant Scheme, offering up to HK$2.5 million per qualified digital bond issuance. In August 2024, HKMA unveiled the Ensemble Project, showcasing four pilot cases involving tokenized infrastructure revenue rights—such as renewable energy projects—linked across borders.
China's Digital Asset Strategy: Bridging Traditional Economy and Web3
While mainland China maintains strict controls on private cryptocurrencies and initial coin offerings (ICOs), it actively explores state-aligned digital finance solutions. The People's Bank of China (PBOC) leads the development of digital RMB (e-CNY) under a centralized “one currency, two wallets, three centers” architecture—ensuring control, traceability, and monetary sovereignty.
Unlike decentralized stablecoins issued by private entities (e.g., Tether or Circle), digital RMB is fully backed by central bank reserves and legally recognized as legal tender. It operates on a two-tier system: PBOC issues e-CNY to commercial banks, which distribute it to users via digital wallets integrated with platforms like Alipay and WeChat Pay.
Key advantages include:
- Instant settlement
- Offline transaction capability
- Lower operational costs
- Enhanced anti-fraud tracking (small transactions remain anonymous; large ones are monitored)
China’s approach prioritizes strategic resilience—particularly in response to potential exclusion from SWIFT. By promoting digital RMB usage in trade with ASEAN and Middle Eastern nations, Beijing aims to reduce dollar dependency and strengthen economic autonomy.
At the same time, China is pioneering a unique form of RWA: data asset tokenization. A notable case is the "Malu Grape RWA" project launched in late 2024 by Shanghai-based Left Bank Xinhui. This initiative converted data from a renowned agricultural brand into tradable digital assets.
By tokenizing production, logistics, and sales data from a vineyard generating $8 million annually, the project generated an additional $3 million in revenue—an early proof-of-concept for “agricultural data IPOs.” Investors received digital collectibles redeemable for grapes or park tickets, tradable on a compliant platform before redemption.
This model demonstrates how even traditional sectors can leverage blockchain to unlock hidden value. With China’s digital economy already representing 42.8% of GDP in 2023, such innovations could fuel broader economic transformation.
Experts estimate that by 2030, the global RWA market could reach between $5 trillion and $16 trillion, creating vast opportunities for asset liquidity and inclusive finance.
Digital Assets and the Path to RMB Internationalization
Despite China’s manufacturing dominance—accounting for 31.6% of global output in 2024—the RMB’s share in global payments remains below its economic weight. One reason: limited availability of freely tradable RMB-denominated assets.
Just as U.S. Treasuries and equities underpin dollar dominance post-Bretton Woods, liquid Chinese assets must become globally accessible to elevate the RMB’s status. Tokenized bonds, green finance instruments, and data-backed securities offer pathways forward.
When international investors can seamlessly invest in tokenized Chinese infrastructure debt or agricultural data assets using digital wallets—and settle in digital RMB—a virtuous cycle begins: demand for RMB-denominated assets grows, boosting currency adoption abroad.
Moreover, successful RWA models developed in Hong Kong or pilot zones on the mainland could serve as blueprints for cross-border capital flows under controlled conditions—aligning innovation with regulatory oversight.
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Frequently Asked Questions
Q: What is the difference between stablecoins and digital RMB?
A: Stablecoins like USDT or USDC are issued by private companies and backed by reserves (cash or short-term bonds). Digital RMB is issued by the People's Bank of China, has full legal tender status, and operates under a centralized system designed for national monetary policy control.
Q: Can individuals use digital RMB outside China?
A: Currently, digital RMB usage is primarily domestic. However, pilot programs with partner countries—especially along the Belt and Road Initiative—are expanding its cross-border functionality for trade settlements.
Q: Are tokenized bonds safe investments?
A: Tokenized bonds inherit the credit risk of their underlying assets (e.g., government debt). However, they often offer greater transparency and efficiency due to blockchain tracking and smart contract automation.
Q: How does RWA promote financial inclusion?
A: By lowering investment minimums through fractional ownership and enabling access via mobile devices, RWA allows underserved populations to participate in asset markets previously reserved for institutions or high-net-worth individuals.
Q: Is China banning all blockchain innovation?
A: No. While speculative crypto trading and private token issuance are prohibited, China actively supports blockchain applications in supply chain management, data authentication, and central bank digital currency development.
Q: Could stablecoins threaten financial stability?
A: Yes—if widely adopted without proper oversight. Risks include runs on reserves (as seen with TerraUSD), money laundering via anonymity features, or systemic contagion if major issuers fail. Regulatory clarity is essential.
Conclusion
The evolution of stablecoins and real-world asset tokenization presents a dual opportunity: enhancing global payment efficiency while laying the groundwork for broader currency internationalization. For China, leveraging digital RMB and pioneering compliant RWA models offers a strategic path toward greater financial influence—without compromising regulatory integrity or national security.
As blockchain matures and institutional adoption accelerates, the integration of digital assets into mainstream finance will deepen. Countries that align innovation with governance—like China’s structured approach—may ultimately shape the next era of global monetary order.
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