The Philippines has become one of the centers of stablecoin adoption in Southeast, which isn’t surprising considering their previously open stance towards crypto.
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It is no surprise that the Asian financial hubs of Hong Kong and Singapore are leading the region in stablecoin regulation and institutional use.
Yet it is in Asia’s emerging economies with more substantive financial inclusion needs that these fiat-backed cryptocurrencies have the most potential—and where their lofty promises will be tested, especially when it comes to cross-border payments. In Southeast Asia, the Philippines is leading in stablecoin usage, driven primarily by remittances, inflation hedging, and retail adoption for daily transactions.
South Asia’s two largest countries, India and Pakistan, are also taking steps to adopt stablecoins—though India’s regulators remain cautious. The Reserve Bank of India (RBI) still views the cryptocurrencies as a possible threat to financial stability. The State Bank of Pakistan (SBP), on the other hand, seems to have no such concerns.
Among emerging Asian economies, it is the Philippines that has moved the fastest on stablecoins.
First Mover
In June, the Philippines’ Coins.ph launched the first fully regulated, peso-backed stablecoin (PHPC) after exiting the Bangko Sentral ng Pilipinas (BSP) sandbox. In addition to being the first peso-backed stablecoin, PHPC is the first such fiat-backed cryptocurrency in the region outside of Singapore. This move paves the way for institutionalized digital currency use, especially for remittances, under clear regulatory oversight in one of Southeast Asia’s most populous and fintech-forward countries.
Coins.ph is betting that stablecoins will become a viable alternative to costly correspondent banking networks. With stablecoins estimated to account for about 23% of global remittance flows and projections pointing to a $250 billion stablecoin-backed remittance volume for Asia by 2028, the exchange says that it wants to ensure the Philippines stays at the forefront of digital finance.
For the Philippines, which is one of the largest recipient remittance markets in the world, stablecoins—by eliminating intermediaries and leveraging 24/7 blockchain networks—can make sending money home faster and cheaper for a massive diaspora population. The country’s cumulative remittances reached a record high of $38.34 billion in 2024, 3% higher than the S$37.21 billion recorded in 2023. The full-year 2024 remittances represented 8.3% and 7.4% of the country’s Gross Domestic Product (GDP) and Gross National Income (GNI), respectively.
“We are aggressively supporting stablecoin remittances because they solve the fundamental problems of cost and time that plague millions of migrant workers,” Coins.ph CEO Wei Zhou said in a Dec. 8 statement. The fiat-backed digital assets “offer a pathway to near-instant, compliant transfers at a fraction of the current cost,” he added.
Stablecoins in the South Asia Subcontinent: It’s Complicated
Unlike in the Philippines, where regulators are generally supportive of stablecoins, the Reserve Bank of India (RBI) remains skeptical. One could say it’s a two-pronged skepticism. The RBI has always been wary of decentralized virtual currencies, even the less volatile kind backed by fiat. At the same time, it fears possible “dollarization” of the Indian economy from USD-backed stablecoins.
“If users begin saving or transacting in dollar-backed stablecoins, the RBI’s ability to transmit monetary policy weakens, inflation control becomes harder, and monetary sovereignty erodes,” notes Hardeep Singh, Vice President, Public Policy & Government Affairs at Indian crypto exchange CoinDCX, in a Nov. 28 analysis. “This risk is not abstract: U.S. legislative moves like the ‘Genius Act’ signal a clear strategic intent to expand the global reach of a digital dollar.”
Yet India also has a sizable stablecoin market—by one estimate 314 million users, which would make it the world’s largest. In a recent report, TRM Labs noted that South Asia, including India and Pakistan, posted an 80% annual increase in crypto adoption between January and July 2025, reaching roughly $300 billion in transaction volume. With regard to crypto adoption, India maintained its top ranking for the third consecutive year.
Like the Philippines, India is a huge market for remittances—the world’s largest overall—and stablecoins can make sending home faster and cheaper for migrant workers. However, these transactions operate in a legal gray area.
A possible way forward would involve the adoption of a rupee (INR)-backed, regulated stablecoin that plugs into India’s domestic payment rails, the Unified Payments Interface (UPI) and the digital rupee, as well as international payment systems for cross-border trade and remittances. On Nov. 20, CoinDesk reported that India would launch the INR-backed Asset Reserve Certificate (ARC) in early 2026. The rupee-backed stablecoin is being developed by Ethereum scaling and infrastructure development giant Polygon and India-based fintech firm Anq. “Essentially, ARC is designed to prevent liquidity outflow into dollar-backed stablecoins,” the report said.
Pakistan’s Stablecoin Foray
Not to be outdone by its rival and neighbor India’s INR-backed stablecoin, Pakistan plans to launch a fiat-backed digital asset of its own. Speaking at Binance Blockchain Week on Dec. 5, Bilal bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), confirmed that the South Asian country will “definitely launch” a stablecoin while also developing a central bank digital currency (CBDC).
“I think it is a great way to collateralize the government debt,” Saqib said. “We want to be at the forefront of this financial digital innovation that is happening. Why should we be at the tail end of it when we have the muscle and the adoption?”
Pakistan is indeed a crypto rising star. It is No. 3 in crypto adoption on Chainalysis’s Top Crypto Adoption 2025 index after No. 1 India and No. 2 the United States. Inflation and the depreciation of the Pakistani rupee have led many citizens to use stablecoins like Tether (USDT) as a hedge and a stable store of value, while Pakistan is similar to India and the Philippines in that it is one of the world’s largest remittance markets. Pakistan’s workers’ remittances are expected to exceed the $40 billion mark in the current fiscal year. Further, more than 60% of Pakistan’s population is under 30, a tech-savvy demographic keen to adopt digital finance.
The Pakistani cryptocurrency market is starting to attract the attention of heavyweight venture capitalists. VC giant Andreessen Horowitz recently led a $12.9 million funding round for Pakistan’s ZAR, a fintech startup that aims to make dollar-backed stablecoins accessible to everyday consumers in Pakistan and emerging markets. ZAR plans for a stablecoin distribution network that spans local stores, phone kiosks, and money agents—the same network already used for mobile top-ups and remittances.
The USD Is Tough Competition
While stablecoins are likely to continue rapidly penetrating emerging Asian economies given their benefits for cross-border payments and particularly remittances, questions remain about the viability of non-USD fiat-backed cryptocurrencies. Among the hurdles they face are low liquidity, regulatory uncertainty and fragmentation across regions, trust issues, and the inherent challenge of maintaining value against inflation without robust mechanisms. Ultimately, non-USD stablecoins will face higher run risks compared to their USD counterparts.
USD stablecoins dominate because they marry the greenback’s liquidity and prestige with the speed and low cost of crypto, serving as bridges for global finance. Fueling their growth are institutional adoption for settlements, consumer interest in remittances, and regulatory efforts in the U.S. to expand dollar influence in the digital age.
For emerging economies in Asia, it will be crucial for regulators to better align their broader cryptocurrency policies with efforts to launch stablecoins backed by local currencies. The Philippines has done a good job in this area, but in India, cryptocurrency still faces manifest restrictions, while its use by financial institutions in Pakistan is banned.
Meanwhile, Malaysia is the latest Asian country to throw its hat in the stablecoin ring. On Dec. 10, the eldest son of Malaysia’s king launched a ringgit-backed stablecoin, RMJDT. A news release about RMJDT’s launch said that the stablecoin aims to strengthen the international use of the Malaysian ringgit in cross-border trade settlements and to act as a catalyst for attracting increased foreign direct investment into Malaysia.
We wonder: How much demand really exists for a ringgit-backed stablecoin? We shall find out soon enough.
