Asian policy makers are fast-tracking new rules for stablecoins after U.S. President Donald Trump publicly endorsed wider use of dollar-pegged cryptocurrencies and Congress passed legislation aimed at promoting the tokens. Authorities in South Korea, Hong Kong, Malaysia, Thailand and the Philippines have begun drafting or revising frameworks to license issuers and manage capital-flight risks, according to officials and industry executives cited by Bloomberg. Dollar-linked stablecoins already dominate the market with about US$256 billion in circulation, compared with just US$403 million for euro-backed counterparts. Global stablecoin capitalization has climbed 45 percent since Trump’s re-election, reinforcing concerns among Asian central banks that unregulated dollar substitutes could erode monetary control and spur capital outflows. South Korea illustrates the policy dilemma. Local exchanges handled 57 trillion won (US$41 billion) of transactions in the three largest dollar-pegged coins in the first quarter, prompting lawmakers to propose a Digital Assets Basic Act that would allow won-denominated stablecoins. The Bank of Korea has warned such products could “cause chaos” reminiscent of the 19th-century era of private money. Hong Kong is positioning itself as a regional test bed, with its Monetary Authority focusing on “viable, practical” use cases and fielding interest from payment firms and trading houses. Even mainland China, which banned most crypto activity in 2017, is exploring yuan-linked tokens through Hong Kong channels, signalling a potential, albeit cautious, policy shift. Market participants say Asia’s regulators must balance sovereignty concerns with competitiveness. While central banks weigh guardrails, companies from JD.com to Ant Group are preparing licence applications, betting that local-currency stablecoins will eventually complement the dominant dollar tokens in cross-border payments and weekend liquidity management.