Across Asia-Pacific (APAC), stablecoins are moving from the margins of crypto adoption into the core of institutional finance. Regulatory clarity is improving, institutional use cases are becoming real, and the compliance frameworks to manage risk are catching up — albeit unevenly across jurisdictions.
In a recent webinar hosted in collaboration with ComplyAdvantage, experts from TRM Labs, Zodia Custody, and PDAX unpacked the shifting landscape of stablecoin regulation and implementation in the APAC region. The session — moderated by Iain Armstrong, Executive Director FCC Strategy at ComplyAdvantage — brought together policy insight, custody infrastructure, and on-the-ground adoption trends to explore what stablecoin compliance looks like today, and where it’s headed.
How regulatory momentum is increasing across APAC
Singapore has taken an opt-in approach to stablecoin issuance — offering issuers the opportunity to comply with elevated standards on redemption, reserve assets, and operational risk in exchange for Monetary Authority of Singapore (MAS) recognition. While this regime is not yet codified into law, it is already influencing market behavior.
In contrast, Hong Kong has introduced a mandatory licensing framework, requiring stablecoin issuers not only to meet prudential standards, but also to demonstrate real-world utility. Capital requirements are significantly higher, and regulators have made it clear they are wary of speculative or duplicative issuance with no clear function.
This shift in regulatory posture was detailed by Angela Ang (Head of Policy and Strategic Partnerships APAC at TRM Labs and former regulator at MAS). Drawing from experience shaping Singapore’s Payment Services Act, she explained how global regulatory convergence — driven by FSB and BIS guidelines — is now intersecting with local political priorities and market structures. Issuers must weigh not only compliance costs and capital obligations, but also where they will find meaningful distribution and liquidity. For compliance professionals, this means working closely with commercial teams to map jurisdictional strategies and ensure alignment between business goals and regulatory realities.
How increasing stablecoin adoption is driving institutional innovation
Institutional adoption is also accelerating in parallel. Deborah Algeo (Global Managing Director Solutions for Zodia Custody) described stablecoins as “the asset class that finally bridges the gap between TradFi and DeFi.” With backing from global banks and a strong focus on regulatory compliance, Zodia Custody is seeing unprecedented demand from traditional institutions looking to leverage stablecoins for settlement, liquidity, and even yield generation. Algeo noted that banks are no longer merely exploring the space — they are building infrastructure, designing products, and actively evaluating risk frameworks to support stablecoin integration into core treasury functions.
The Philippines offers a compelling case study for how stablecoins are being used to solve real-world problems. Nichel Gaba (Founder and CEO of PDAX) shared how remittance companies in the country are adopting stablecoins not for speculative reasons, but out of operational necessity. With over USD 40 billion in annual inflows from overseas workers and rising interest rates driving up the cost of pre-funding corridors, stablecoins provide a just-in-time liquidity solution that is cheaper and faster than traditional rails. The regulatory environment in the Philippines has supported this transition, with updated Travel Rule guidelines and clear expectations for AML compliance in virtual asset transactions.
How compliance is shifting in the blockchain era
All three panelists emphasized that while stablecoins are technically bearer instruments, their blockchain-based nature enables levels of visibility and traceability that go far beyond what is possible with fiat. Ang explained how public blockchains allow compliance teams to examine transaction flows multiple steps beyond the immediate counterparty, providing insight into layered exposure and potential touchpoints with illicit actors. Blockchain analytics makes it possible to map risk in near real-time, offering regulators and financial institutions a new paradigm for anti-money laundering (AML) / countering the financing of terrorism (CFT) control.
Algeo added that the transition to stablecoins doesn’t require abandoning traditional compliance frameworks. Instead, it demands adapting those frameworks to blockchain data. Concepts like surveillance, redemptions oversight, reserve management, and safekeeping all carry over — but must be implemented with blockchain-native capabilities. At Zodia, this has meant embedding compliance into the infrastructure from day one, ensuring that digital asset operations meet the standards expected of any regulated financial institution.
As the conversation shifted to futureproofing, the panel agreed that compliance culture is now a core differentiator. Angela Ang underscored that the firms best positioned for growth are those that see regulation not as a burden, but as a competitive advantage — particularly when engaging with institutional partners or expanding across borders.
Algeo pointed to the value of principle-based strategies and cross-jurisdictional benchmarking, especially as new frameworks come online in Australia, South Korea, and beyond. And Gaba encouraged institutions to start small but move quickly. Stablecoins are not exotic, he argued — they are simply new rails that can be managed using familiar principles and adapted toolkits.
Looking ahead: Stablecoins are here to stay
The session closed with a reflection on the broader implications of USD-denominated stablecoins dominating the APAC market. In the Philippines, for example, dollar-based stablecoins are enabling access to global trade and payments for merchants and remittance recipients who would otherwise be excluded. While some may raise concerns about monetary sovereignty, Gaba explained that speculative flows are already covered by traditional foreign exchange rules, and regulators could apply similar controls to stablecoins if needed — without stifling their utility.
Throughout the webinar, one theme was clear: stablecoins are no longer hypothetical. They are being issued, regulated, adopted, and monitored in real time. APAC is not just participating in this evolution — it’s shaping it. For regulators, financial institutions, and compliance leaders, the challenge now is to translate early momentum into scalable, risk-managed, and future-ready frameworks that support the next chapter of digital finance.
{{horizontal-line}}
Learn more about how financial institutions can mitigate risks associated with stablecoin activity in our latest white paper, “Banking on Stablecoins.”
Related posts
Access our coverage of TRON, Solana and 23 other blockchains
Fill out the form to speak with our team about investigative professional services.
