The emergence of CNH stablecoins, along with a broader multi-currency stablecoin infrastructure, is poised to challenge the long-standing dominance of the US dollar in invoicing and settlement.

In a recent Q&A with The Asset, Jakob Kronbichler, co-founder and chief executive officer of decentralized credit marketplace Clearpool, says the rise of fiat-referenced stablecoins, particularly in a forward-looking jurisdiction like Hong Kong, signals a major turning point for regional trade and currency usage in Asia.

A Hong Kong-issued CNH stablecoin is explicitly designed to bolster offshore renminbi settlement for international trade. As Kronbichler explains, this stablecoin is not a replacement for the onshore digital yuan, but rather a complementary tool.

“CNH stablecoins and e-CNY should be viewed as complementary: one serving international flows and the other serving domestic retail and commercial use,” Kronbichler says.

The CNH stablecoin will primarily interact with existing systems in three key ways:

• Integration with offshore CNH FX markets: The CNH stablecoin functions as an alternative settlement instrument that leverages existing CNH liquidity in major global centres like Hong Kong, Singapore, and London. While the economic logic remains the same, the settlement process becomes faster and more programmable.
• Interoperability with e-CNY: While bridges will eventually emerge between the CNH stablecoin and the e-CNY, these connections will be permissioned and tied to identity frameworks. This underscores their distinct roles: international settlement versus domestic commercial use.
• Impact on corporate treasury: Many firms in Asia still rely on USD for invoice settlement, even when both counterparties are regional. According to Kronbichler, this is due to “friction and conversion costs”. A CNH stablecoin removes the costly “double conversion that occurs when settlements route through USD”, offering treasurers faster settlement and more predictable working capital cycles.

While the transition is promising, certain frictions will remain, including regulatory differences between onshore and offshore markets, compliance requirements, and potential limited CNH liquidity during certain hours. However, once corporates experience “instant CNH settlement with full traceability, these frictions become manageable”, Kronbichler says.

Looking ahead three to five years, Clearpool’s CEO believes a multi-currency stablecoin backbone "can materially shift regional invoicing and settlement practices for intra-Asia trade".

This transformation will not be driven by geopolitics, but purely by settlement efficiency. "Once regional currencies can settle as quickly and reliably as USD stablecoins, treasurers will begin to reconsider their default choices," says Kronbichler.

For this vision to scale, several critical infrastructure pieces must emerge.

First, there must be deep liquidity in regional stablecoins, particularly for currencies like CNH, HKD, SGD, and MYR, which will need extensive on-chain liquidity.

Second, to ensure interoperability, there must be seamless connectivity between stablecoins, central bank digital currencies ( CBDCs ), and existing real-time payment systems. Treasurers prioritize certainty above all else.

Third, simultaneous settlement, or atomic DvP ( delivery versus payment ), is a key requirement. This means settlement must occur with “no settlement window” – asset delivery and payment occur simultaneously, eliminating counterparty exposure.

Fourth, multi-currency credit rails must be available, meaning that regional currencies need seamless financing options, just like the US dollar. “This is where Clearpool’s core offering, Payment Financing ( PayFi ), plays a role, providing the "short-cycle credit liquidity that supports real-world settlement flows,” Kronbichler says.

If these elements fall into place, Kronbichler sees a “strong likelihood that trade corridors such as Singapore to Malaysia, Hong Kong to China, and the Middle East to Asia will begin settling in regional stablecoins rather than US dollar”.

The transition will be gradual but economically driven. With the underlying technology ready and liquidity improving, the next critical step is standardization.