With the current passing of the GENIUS Act, a landmark US regulation for stablecoins, international consideration has intensified. To focus on the rising stablecoin panorama in Asia, BeInCrypto sat down with Dr. Sam Seo, Chairman of Kaia. As one in every of Asia’s main crypto platforms, Kaia is on the forefront of shaping regional stablecoin methods.
Stablecoins Take the Spotlight in Asia
President Donald Trump has signed the GENIUS Act, the primary US federal legislation governing stablecoins, simply at some point after it cleared the House. The landmark laws requires one-to-one reserves, common audits, and limits issuance to licensed banks, credit score unions, and sure permitted non-banks, whereas banning algorithmic or unbacked cash.
The transfer has already triggered a wave of company curiosity. Within weeks, main US retailers corresponding to Amazon and Walmart started exploring proprietary stablecoins to chop card-network charges, velocity settlement, and combine loyalty packages. Supporters see this as a step toward mainstream adoption; critics warn it might pull deposits from conventional banks and drive them to speed up digital-currency methods.
The timing comes because the US greenback faces its sharpest first-half drop since 1973, prompting European buyers to show to euro-denominated buying and selling and euro-pegged stablecoins to cut back FX danger. While the greenback stays dominant, the regulatory readability of the GENIUS Act might strengthen its place in crypto simply as Asia weighs the best way to profit from USD-based liquidity with out undermining native currencies.
Kaia DLT Foundation’s Chairman, Dr. Sam Seo, mentioned with BeInCrypto how Asian policymakers and platforms ought to reply — and why a regional stablecoin alliance could also be vital for the area’s long-term autonomy.
Seo didn’t hesitate to choose the stablecoin when requested about essentially the most vital pattern in Asia’s digital asset market.
“The most trendy one is stablecoin,” he stated. “Even before the Genius Act, the increasing usage and volume of stablecoin actually ignited the discussion and attracted much attention in Asia.”
He harassed that stablecoin adoption is increasing quickly throughout Asia, making it removed from a phenomenon restricted to the US or Europe. USD-backed cash are additionally closely utilized by Asian people and companies. The surge extends past speculative buying and selling, with stablecoins more and more embedded in on a regular basis transactions, cross-border commerce, and regional regulatory agendas.
Leaders and Regional Defenders
When requested which nations are driving innovation, Seo pointed to 2 main ones.
“I would say probably Singapore or the UAE, because they were quite advanced in terms of making regulations for stablecoins. In Singapore, they already made the single currency stablecoin regime in 2023, not only about the Singapore dollar, but also other major 10 currencies. And also the UAE, they made many regulation frameworks related to crypto and stablecoins.”
Singapore’s early motion positioned it forward of different Asian jurisdictions in setting clear, enforceable guidelines. The UAE, led by Dubai and Abu Dhabi, has additionally constructed a complete regulatory framework for digital belongings, together with stablecoins.
By distinction, Seo stated, a number of nations concentrate on stablecoins pegged to their very own currencies.
“Japan, Korea, Hong Kong, China, and the Philippines are more focused on their currency-based stablecoins because they care about their people and their currency.”
This displays a shared precedence: defending home financial programs and safeguarding nationwide currencies from being displaced by foreign-backed cash.
Genius Act: Both Threat and Opportunity
The GENIUS Act has created a transparent framework for regulated USD stablecoins corresponding to USDC and PayPal USD. For Asia, Seo sees each hazard and potential.
“If we don’t have local currency stablecoins, the fiat currency would be less used as the usage of USD stablecoins can increase a lot. But if we prepare the regional stablecoin and the proper usage of USD stablecoins, then this could be an opportunity for the Asian countries.”
Seo famous that regulated USD stablecoins beneath the GENIUS Act might additionally unlock new capital flows for Asia’s tokenized asset markets — from authorities bonds to actual property — boosting fundraising and buying and selling exercise. He additionally emphasised that as a result of stablecoins are usually issued and transacted on public blockchains, they’re clear to all contributors. At the identical time, privateness can nonetheless be preserved by means of selective anonymization of consumer information.
Japan’s Strict Model and the Need for Balance
Japan’s Payment Services Act allows solely banks, belief corporations, and licensed remittance suppliers to subject stablecoins, requiring full reserve backing and common audits. Seo sees this as a powerful safeguard for the yen.
“Regulation for stablecoin is a way of protecting the Japanese currency and the Japanese market. Requiring a strong reserve inside certain jurisdictions actually can prevent the money from going out from the country.”
But he additionally cautioned in opposition to overreach.
“If the reserve requirement is too strict, that might prevent the non-local players from entering and reduce the interoperability with stablecoins backed by denominations of other countries, which is one of the most significant roles of digital currencies. We need a balance for non-local players to play.”
Payments, E-Commerce, and Inclusion
Seo believes stablecoins might push Web3 into the mainstream in Asia, particularly in funds and e-commerce.
“Absolutely yes,” he affirmed. “In some countries, for example, in Vietnam and Indonesia, QR payments are nearly dominant, rather than credit card payments.”
By integrating stablecoins into QR-enabled wallets, hundreds of thousands might transact with no need a checking account or card, which requires them to undergo the complexity of the financial institution’s authentication course of.
“We don’t have to reinvent the interface by having the stablecoin as another means of currency we can increase the transactions of payment and lower the difficulty of the payment.”
Europe’s Edge and Asia’s Alliance Gap
Seo famous that Europe enjoys simpler liquidity coordination due to the euro and the MiCA framework. With its a number of currencies alongside the regulatory range, Asia doesn’t have this benefit.
“A single currency is unnecessary in Asia, but a multi-currency stablecoin alliance is very effective. It can improve liquidity between different currency-backed stablecoins.”
Such an alliance might be a basis for cross-border interoperability and cut back friction between regional markets.
Kaia’s Roadmap for Regional Cooperation
Kaia is focused on increasing real-world use instances for stablecoins and driving adoption in Asia. It already helps USDT natively and plans to onboard yen-, rupiah-, and Hong Kong greenback–backed stablecoins. The second section is to construct an on-chain FX marketplace for seamless foreign money swaps and environment friendly cross-border settlements. This would enhance liquidity, decrease transaction prices, and allow quicker funds.
The ultimate stage is to ally Asian stablecoin issuers to standardize practices and broaden regional community results.
“We are definitely working on that,” Seo stated of Kaia’s collaboration with LINE Messenger, some of the common ones within the area. “Someday, the LINE users from Japan or other countries could use different stablecoins inside the LINE messenger. But it requires proper regulation as well.”
Kaia is working carefully with LINE to discover stablecoin integration, anticipating that after the authorized framework is prepared, LINE customers can ship and obtain stablecoins seamlessly, domestically and internationally.
Kaia is a Layer 1 blockchain platform launched in August 2024. It combines Klaytn from Kakao and Finschia from Naver, Korea’s dominant tech giants. Naver’s LINE Messenger has an enormous Asian consumer base in Japan, Taiwan, and different nations.
Kaia chain community onboarded Tether’s USDT in May this yr, and additionally it is in discussions with different stablecoin and fintech corporations to create potential KRW, JPY, and different currency-backed stablecoins.
Asia’s Defining Choice
For Seo, the technique is evident: construct native foreign money stablecoins, selectively combine USD liquidity, and join them by means of a regional interoperability framework.
“Stablecoins are no longer just a crypto tool. They are becoming the connective tissue of digital finance in Asia… capable of linking payments, tokenized markets, and everyday commerce.”
The GENIUS Act could solidify the greenback’s regulated position in international crypto. Whether Asia responds with fragmentation or a united technique will decide the area’s monetary autonomy for years.
The submit GENIUS ACT and Beyond: Kaia Explains Asian Perspective appeared first on BeInCrypto.
