Direct crypto payments are gaining traction across Asia, with stablecoins emerging as natural payment rails for major economies.
Hong Kong-based crypto payment platform RedotPay closed a $40 million Series A funding round led by Lightspeed, with participation from HSG and Galaxy Ventures.
RedotPay aims to enable cryptocurrency use in everyday transactions while simplifying blockchain transactions for spenders, akin to fiat. In November 2023, the company launched its own physical Visa cards, which can be used for ATM cash withdrawals, along with a virtual card that supports digital payment services like Apple Pay and Google Pay.
The company has expanded its blockchain integrations, adding Solana in December 2024 and Ethereum layer 2 Arbitrum in February. Additionally, it partnered with StraitX and Visa to support retail crypto payments in Singapore.
Still, RedotPay appears to have cross-border service restrictions. Visitors outside Hong Kong are greeted with a warning when accessing the company’s website.
RedotPay appears to have cross-border service restrictions. Visitors outside Hong Kong Source: RedotPay
Direct cryptocurrency payment solutions are gaining traction across Asia. In November 2024, Singapore-based digital asset trading platform Crypto.com partnered with Triple-A to enable direct crypto payments, eliminating the need to convert crypto into fiat.
Hong Kong has its share of competitors. Infini, a stablecoin-focused crypto payment firm, offers payment services while earning yields. However, it recently suffered a $50 million USDC exploit, allegedly orchestrated by a rogue developer who swapped USDC for DAI — a decentralized stablecoin that cannot be frozen like its centralized counterparts.
Related: Infini loses $50M in exploit; developer deception suspected
Unlike volatile cryptocurrencies like Bitcoin (BTC) or Ether (ETH), stablecoins can offer a more consistent option to hold for those who want to use them for payments, as the assets are designed to maintain a value pegged to their fiat counterparts.
Japan, the second-largest Asian economy by gross domestic product, is making significant strides in stablecoin adoption. A recent report by Tokyo-based research and consulting firm Yuri Group shared with Cointelegraph Magazine suggests that the Japanese government views stablecoins as a potential catalyst to unlock $14 trillion in household savings.
Japan’s eyes digital assets resurgence behind established financial institutions. Source: Yuri Group
Yuri Group highlights Progmat as a key player in Japan’s digital asset ecosystem. Backed by the nation’s largest bank, Mitsubishi UFJ Progmat operates in compliance with Japan’s strict regulatory framework, which mandates a 1:1 reserve backing. This ensures that Japan’s established financial institutions remain at the forefront of digital asset management.
In contrast, China, Asia’s largest economy, has banned cryptocurrency trading and recognizes the renminbi as the country’s sole legal tender.
Magazine: How Chinese traders and miners get around China’s crypto ban
