The A-share market is full of ups and downs, but the stablecoin concept sector has stood out like A shining new star among many sectors, becoming the focus of investors’ pursuit. The share prices of related stocks have soared, and the market trading activity has significantly increased.

Stablecoins, as a type of cryptocurrency pegged to fiat currency or other stable assets, aim to reduce the high volatility of the cryptocurrency market and provide users with a relatively stable store of value and medium of exchange. In the A-share market, the popularity of the stablecoin concept is not accidental but rather the result of the dual effects of policy dynamics and market demand.

With the rapid development of the global fintech sector, policies related to digital currencies have been continuously sending out positive signals. The regulatory authorities’ attitude towards digital currency innovation is gradually becoming clear, emphasizing that under the premise of standardized development, they encourage fintech enterprises to explore the application scenarios and technological innovations of digital currencies. This policy orientation provides A favorable policy environment for the rise of the stablecoin concept in the A-share market.

Meanwhile, the market demand for stable assets is also constantly increasing. Against the backdrop of intensified volatility in the cryptocurrency market, investors’ demand for asset preservation and risk hedging has become increasingly urgent. Stablecoins, with their relatively stable value characteristics, have become A “safe haven” for investors in the cryptocurrency market and have also attracted the attention of investors in the A-share market.