The institution is entering a brand new era of digital assets—Which processes should be placed on the blockchain, and which can still remain off-chain? In this episode of "Clearing Spotlight," we have invited Head of Asia-Pacific, Fireblocks Amy Zhang, to jointly exploreTokenization, Smart Contracts, and BlockchainHow to remain within the organization while still...Strict internal approval processOn this basis, significantly improve the efficiency and security of asset transfers. This discussion delved into Web2 approval workflow with On-chain asset transfer How to achieve a balance, and why more and more institutions are choosingBoth can be implemented in parallel, each leveraging their respective strengths.'s path.
Host:
Hello everyone, and welcome back to *Clearing Spotlight*. Here, we focus on how markets move forward in complex environments and how financial institutions respond to liquidity risks and infrastructure changes. Thank you all for tuning in to *Clearing Spotlight* once again. Today, our guest is... Amy Zhang, Head of Asia-Pacific at FireblocksAmy, how have you been lately?
Amy Zhang:
I'm fine, thank you. How about you?
Host:
I'm doing well too. I'm very happy to be communicating with you, and you are the first female guest on our podcast.
Amy Zhang:
Really? That would be a great honor.
Host:
Well, perhaps I can first ask you to briefly introduce yourself, as well as Fireblocks.
Amy Zhang:
Hi everyone. I'm Amy, and I currently lead Fireblocks' business in the Asia-Pacific region. I've been with Fireblocks for five and a half years now. When I first joined, the company was still very small. During the first year, we mainly focused on validating a key question: Would the success Fireblocks achieved in Europe and the U.S. also apply to the Asia-Pacific region? If we were to continue investing in the region, what should our strategy be? And how could we ensure that our customers receive sufficient local support?
We soon discovered that APAC customers indeed require products and features similar to those for European and American customers, but the real key lies in localization—building local teams and providing support that is close to the customers' needs.
Today, Fireblocks serves more than 2,400 clients globally, with nearly 500 in the Asia-Pacific region. Its client base is extremely diverse, ranging from small cryptocurrency trading teams to the world's largest banks and asset management companies, covering almost every possible type.
Adoption of stablecoins in Asia
Host:
How would you describe the current adoption status of stablecoins in Asia? What is driving this momentum?
Amy Zhang:
One of the most important changes is the transformation of the "trust structure." It can be said that for the first time since the establishment of the modern financial system—billions of dollars in funds are moving every day, without relying on traditional intermediaries.Without the direct involvement of traditional banks or financial institutionsComplete the transfer, accounting, and settlement.
If we break down the source of this trust, there are mainly three aspects.
First, it isEnhancement of regulatory clarityMost Asian countries have either already established stablecoin regulatory frameworks or are in the process of developing them. This has changed significantly over the past year.
Second, it isTechnology MaturityOver the past year, there have been many security incidents in the industry. However, these incidents have also driven the maturation of technologies and infrastructure, helping organizations better understand how to securely interact with blockchains and digital assets.
Third, it isLiquidity ConvertibilityThat is, whether the institution can directly perform on-ramping and off-ramping, including primary minting and burning, as well as whether it can access sufficient secondary market liquidity. This makes stablecoins a truly usable and user-friendly asset, allowing merchants to efficiently conduct cross-border fund transfers.
The Nature of Stablecoins: The Unity of Information and Settlement
Host:
If you were to explain stablecoins to an audience encountering them for the first time, you could define them in the simplest way as:
**"Stablecoins are a type of cryptocurrency that maintains a stable value, usually tied to a real-world asset like the US dollar."**
This means that, unlike other cryptocurrencies like Bitcoin or Ethereum, which can be very volatile (their prices can go up or down a lot in a short time), stablecoins are designed to keep their value steady. For example, 1 stablecoin might always be worth $1, no matter what happens in the market.
**Why are stablecoins so important
Amy Zhang:
We can start by talking about "how money flows." When a transfer occurs between you and me, there are actually two levels involved:
First isInformation LayerThat is, I tell you how much money I want to transfer;
Second isSettlement Layer, the bank actually transfers the money from my account to your account.
In the traditional system, this process involves numerous intermediaries, including payment service providers and clearing institutions. Banks have always been at the center because historically, funds were held in banks, and banks assumed the responsibility for risk management.
The balance you see in your bank account is not equivalent to the actual cash held by the bank. Banks operate under a fractional reserve system and must manage the risk between "book money (1 dollar on paper)" and "actual physical dollars received by the recipient."
The fundamental difference of stablecoins lies in the fact that information and settlement are completed within the same transaction. The core value this brings is efficiency. Time delays in cross-border payments have always been a pain point, whereas stablecoins can enable instant settlement, thereby saving time, reducing costs, and creating new revenue opportunities.
This is also why the earliest adopters of stablecoins wereIndustries with High Working Capital RequirementsFor example, bulk commodity traders and shipping companies. If they can turn over $100 million ten times a day, the efficiency and profits would be entirely different.
In addition, in most regulated jurisdictions, stablecoins are backed 1:1 by highly liquid assets such as the U.S. dollar, and do not operate under a fractional reserve banking system.
Do stablecoins "surpass" traditional cross-border systems?
Host:
It is often said in the market that the trading volume of stablecoins is surpassing traditional cross-border payment systems. What's your view on this?
Amy Zhang:
I don't think stablecoins have already completely surpassed traditional methods. In 2024, the scale of traditional cross-border fund flows is approximately $20 trillion, while stablecoin transfers amount to about $2 trillion, which is still only one-tenth. More importantly, this $2 trillion primarily does not come from the traditional sector.
What actually happened is:Some industries long overlooked by the traditional cross-border system have naturally turned to stablecoins.Initially, it was the cryptocurrency trading industry, which required 7x24 hours, instant, and large-volume settlements. In the early days, they were almost "excluded by banks." Then came new economic forms: e-commerce platforms, creator economy, and digital businesses. These companies needed to make payments to a large number of individuals globally, and the traditional banking system was not only costly but also operationally complex. Later on, it expanded to industries with high working capital demands, such as commodities, shipping, and precious metals trading.
Why is regulation a catalyst for adoption?
Host:
IMF The data shows that the Asia-Pacific region leads globally in stablecoin activity in 2024. You also mentioned earlier that regulation is a key catalyst for adoption. Could you elaborate on that?
Amy Zhang:
The most important value of regulation isDeterminism.
First, at the issuance level: which stablecoins can be legally used? Are they recognized?
Second, at the balance sheet level: if a bank or a PSP holds stablecoins, how should they be recorded, and how should the risks be measured?
Currently, Singapore and Hong Kong are both conducting relevant consultations to clarify the positioning of stablecoins within bank balance sheets. Without clear regulations, institutions cannot operate at scale.
TradFi refers to traditional finance, which encompasses the Integration with Cryptocurrency Finance
Host:
More and more traditional financial institutions are beginning to explore stablecoins, which indicates that the mainstream financial industry is undergoing significant changes. This trend suggests a growing recognition of the potential of digital currencies to enhance financial efficiency, improve cross-border payment capabilities, and provide more stable value storage options. It also reflects the increasing integration of traditional finance with emerging technologies and the broader adoption of blockchain and cryptocurrency concepts within the financial sector.
Amy Zhang:
We are seeing The Two-Way Integration of Traditional Finance and Cryptocurrency Finance.
Banks and payment service providers (PSPs) are both considering how to integrate stablecoins as a new payment channel into the existing financial system. If a bank is not a partner bank of a major stablecoin, it is essentially losing deposits.
For PSPs, stablecoins are just another rail, butLower cost, higher profit margin, it can also bring new business lines. At the same time, native crypto institutions are issuing tokenized securities and have received very positive market feedback.
Web2 Approval × Web3 refers to the next generation of the internet On-chain: Real Practices of Institutions
Host:
How do organizations typically balance innovation and risk management, especially in on-chain treasuries and payment systems?
Amy Zhang:
The reality is that:Not every process needs to be on the blockchain.
Approval processes, permissions, and risk management—many institutions already have very mature internal systems for these functions in the Web2 world. They typically complete these processes off-chain, and once approved, they use secure infrastructures like Fireblocks to actually move assets onto the blockchain for further transactions. This has led to a division of labor:
Web2 refers to the second generation of the WorldApproval, authority, risk control
Web3 refers to the next generation of the internetAsset issuance, transfer, settlement
Internal interbank settlements are often conducted on private blockchains or permissioned ledgers; assets are only transferred to public blockchains when interaction with the public ecosystem is required.
Digital Assets Treasury Management
Host:
When many people talk about digital assets, they only think of Bitcoin, but treasury management involves much more than that. What's your view on this?
Amy Zhang:
Here's a simple example: A trading company has $10 million in working capital, which it usually keeps in a bank account as a buffer. Now, it can convert this money into stablecoins and deposit it into on-chain money market funds to earn interest. When it needs cash, it can convert it back to USDC for global payments. This is essentially how treasury management works for crypto trading companies today—only traditional companies are just beginning to understand it. Of course, some listed companies also hold BTC and ETH as part of their asset allocation, which is also reasonable from a long-term return perspective.
Host:
When enterprises are doing treasury diversification, are they still only focusing on BTC and ETH?
Amy Zhang:
It depends on the purpose. Some companies are driven by capital market narratives; others are very pragmatic—Optimize Working Capital Efficiency with StablecoinsIn the end, there is only one question: what tangible benefits can stablecoins bring to businesses?
Host:
Hong Kong has been very proactive in its policy initiatives regarding stablecoins and digital finance. How do you view its positioning?
Amy Zhang:
It is impossible to discuss Hong Kong without mentioning China. Hong Kong and China form one of the largest financial corridors in the world. If compliant stablecoins can play a role in this context in the future, it would be highly significant. In addition, Hong Kong has a substantial capital market and possesses a natural advantage in the tokenization of securities and bonds. It is also one of the few jurisdictions that allows the offering of both crypto assets and security tokens on the same platform.
Host:
Finally, what advice would you give to financial executives or entrepreneurs who are still hesitating about adopting stablecoins?
Amy Zhang:
First, regard stablecoins asA newly added trackRather than a rejection of the existing system. Second, do not fear regulation. Regulation itself is an opportunity. In the past, only banks could do certain things, but now payment service providers (PSPs) and brokers can also participate, creating a huge commercial space. Banks will not ignore this trend either; they are also upgrading their capabilities to support customer needs in the stablecoin era.
Host:
Thank you very much, Amy, for sharing your deep insights on stablecoins and digital asset capital management. Thank you to all our listeners for tuning in. We are Clearing Spotlight, continuously providing you with clear perspectives on the market. See you next time.