The anchor of stablecoins is not chips on a gambling table, but rather the stabilizing force in the financial world.
The recent blow from the Secretary for Financial Services and the Treasury of Hong Kong directly hit the most vulnerable point of cryptocurrencies—transparency of reserve assets. The so-called "high-quality liquid assets" translates to crypto slang as: no more using air tokens as collateral, and don't use user funds to speculate on altcoins. This is equivalent to putting a tight restriction on stablecoin issuers, requiring their reserve pools to be filled with hard currencies like government bonds and bank deposits, rather than some project parties' hidden "air asset packages".
As a veteran who has experienced three stablecoin collapses, I must commend this policy. Just look at the tragedy of UST in 2022: that so-called "algorithmic stablecoin" project was stuffed with tokens from related projects in its reserve pool, and when the market panicked, the entire setup collapsed like a house of cards, with a market value of 40 billion dollars instantly going to zero. Hong Kong's clear red line this time is equivalent to establishing a "reserve asset whitelist" for the industry, which is more protective of user wallets than any technical white paper.
A real case: a leading stablecoin was reported to have invested 30% of its reserves into a cryptocurrency fund, claiming "high returns with low risk", but when Bitcoin plummeted by 50%, its USD peg deviated by 0.3 dollars. Hong Kong requires reserves to maintain a 1:1 exchange capability, which is akin to forcing issuers to buy "financial insurance". Although this may reduce yield, it can ensure stability in extreme market conditions.
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