The Hong Kong Treasury and HKMA recently released a consultation summary on the regulatory regime for stablecoin issuers. KPMG believes that the main concern of stablecoin users is the lack of trust in the reserve assets that support stablecoins, which also limits the wide application of stablecoins. The consultation summary recommends that fiat currency assets be used as the reserve assets of stablecoins and supervised by regulators. This will help to allay user concerns and promote the wider application of stablecoins. The introduction of a regulatory regime for stablecoin issuers will not only enhance the confidence of issuers and users, but also is expected to promote the innovation and development of the practical application of stablecoins in Hong Kong, and help Hong Kong play a central role in the future development of financial infrastructure. Paul McSheaffrey, senior banking partner at KPMG China in Hong Kong, said the contents of the consultation summary were significant in strengthening Hong Kong's position as a virtual asset hub. Stablecoins have become an increasingly popular payment tool and are expected to become an important part of financial infrastructure in the future.