Morgan Stanley: The Hong Kong stablecoin bill paves the first legal path for offshore RMB stablecoins.

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On June 21, Morgan Stanley’s latest research report pointed out that the Hong Kong stablecoin bill essentially paves the first legal path for offshore RMB stablecoins. Supported by a substantial offshore liquidity pool of approximately 1 trillion RMB in Hong Kong, offshore RMB stablecoins will validate actual use cases for cross-border settlement while avoiding violations of mainland capital controls or impacting onshore financial stability. The development of RMB stablecoins should be viewed as a potential component of the cross-border RMB settlement infrastructure, which includes RMB swap agreements, CIPS (Cross-Border Interbank Payment System), and the global RMB clearing service network. (Ming Pao)

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