Bloomberg Industry Research released a report discussing the potential of the stablecoin market in Hong Kong and its impact on the foreign exchange market. Analysts stated that since any stablecoin pegged to the Hong Kong dollar is backed by Hong Kong dollar cash or cash equivalents, stablecoins will still be affected by the exchange rate between the Hong Kong dollar and the US dollar. Even if the value of stablecoins remains stable during any potential adjustment period in the linked exchange rate, the assets supporting stablecoins may need to be revalued, leading to the belief that future stablecoins in Hong Kong may be linked to real-world assets such as real estate.
