Bernardo Bilotta, CEO and co-founder of Stables, has challenged the common narrative that Asian banks shun stablecoins due to a lack of technical savvy. Instead, he frames their hesitation as a calculated act of institutional self-preservation. In an interview, Bilotta explained that for a commercial bank, the most critical asset on the balance sheet is not cash or property, but its relationship with the central bank and Western correspondent banks—relationships that could be jeopardized by early-stage stablecoin engagement.
Asia Handles Half of Global Stablecoin Flows, Yet Banks Remain Cautious
According to Bilotta, Asia now directs nearly 50% of global stablecoin flows, supporting cross-border trade and institutional liquidity. Yet major banks in Singapore, Hong Kong, and Jakarta remain noticeably cold toward the asset class. Bilotta dismisses explanations of a “generation gap” or technical ignorance: “Taking on stablecoin risk, even just for transactional purposes, means assuming reputational risk with regulators before rules are fully set.”
The threat of severed correspondent banking relationships looms even larger. Asian banks rely on partner banks in New York and London to facilitate international trade. If a bank in Jakarta or Bangkok begins dealing in stablecoins, Western compliance teams may flag it as a risk—potentially cutting off access to dollar and euro markets. Bilotta notes that the survival logic of maintaining these relationships far outweighs the potential profits from stablecoin integration.
USD Stablecoins Command 99% of Market; Local Tokens to Bridge the “Last Mile”
The stablecoin market is overwhelmingly dominated by dollar-pegged tokens, which account for 99% of trading volume. Bilotta argues this is not a failure of technology but a reflection of fundamental demand: “In emerging markets in Asia, people actively want dollar exposure. A migrant worker sending money from Singapore to the Philippines uses USDT not because there’s no local alternative, but because they want dollars.” He estimates that cross-border remittance demand has boosted dollar stablecoin usage by 60%.
While Bilotta does not foresee local-currency stablecoins (e.g., JPY, SGD) challenging dollar dominance in cross-border flows soon, he identifies a clear use case: the last-mile payment layer. Stables has partnered with eStable to integrate USDT and Tether’s Hadron platform for institutional settlement and local stablecoin issuance. As Japan and Singapore move toward regulated bank-issued tokens, these local stablecoins can serve as bridges—converting USDT streams into local currencies at the point of final payment.
Regulatory Fragmentation: A Transitional Phase, Not a Permanent Barrier
Bilotta addresses the patchwork of stablecoin regulations across Asia, where Singapore embeds rules into its Payment Services Act while Hong Kong has enacted a standalone Stablecoin Ordinance. Critics call this a barrier to growth, but Bilotta sees it as a necessary step toward convergence: “Singapore and Hong Kong are taking different approaches to the same goal—treating stablecoins as regulated payment instruments. The core principles—reserve backing, redemption rights, AML compliance—are moving closer together.”
He concludes that the current standoff between transaction volume and legacy compliance will persist only until “the cost of inaction exceeds the cost of action.” For Asian banks, the question is no longer whether they understand the technology, but how long they can prioritize survival over evolution.