A recent IOSG report highlights the challenges faced by stablecoins in the Asian cross-border payment sector. The report categorizes the stablecoin strategies of payment companies into three areas: accepting stablecoin payments, issuing stablecoins, and mitigating regulatory risks through offshore brands. Despite these strategies, stablecoins offer limited advantages in terms of fees and speed compared to traditional payment methods, as local payment channels have significantly reduced costs. The report notes that neobanks represent the most valuable segment in the stablecoin cross-border payment value chain. Stablecoin payments are most effective in regions with underdeveloped banking infrastructure, such as Southeast Asia, the Middle East, and Africa. The issuance of stablecoin licenses by the HKMA in March 2026 is expected to be a pivotal moment for the industry, with companies like RD InnoTech poised to benefit. While some companies like Airwallex and XTransfer are cautious or yet to launch stablecoin products, others like LianLian Pay and RD Technologies are actively integrating stablecoins into their operations. However, the report concludes that stablecoins have not yet addressed core issues like currency exchange and domestic settlement, limiting their impact on cross-border payments.