"Cryptographic Assets" Value Closed Loop and Dynamic Equilibrium of Cross-Border Capital Flows

DOI: https://doi.org/10.62517/jbm.202609112

Author(s)

Yanning Li, Weilun Huang*

Affiliation(s)

School of Finance and Trade, Wenzhou Business University, Wenzhou, Zhejiang, China *Corresponding Author

Abstract

In recent years, with the widespread application of stablecoins in cross-border payments, asset tokenization, and financial market settlements, the global financial system is undergoing profound transformation driven by digital currencies. The stablecoin market size has exceeded 250 billion US dollars, with an annual on-chain trading volume of 25 trillion US dollars, surpassing the combined total of Visa and Mastercard. As one of the world's most influential stock exchanges, Nasdaq not only holds a central position in the capital market but also gradually integrates the traditional "fiat currency - securities" system with the emerging "cryptographic assets - stablecoins" ecosystem through strategic investments, infrastructure connections, and regulatory collaboration, exploring a new value closed-loop model. Based on cross-border capital flow theory and platform transaction structure analysis, this paper proposes a dynamic optimization model to depict the capital allocation equilibrium of stablecoins under the linkage of cross-border financing and securities markets. By constructing a Hamiltonian function and solving the first-order conditions, the inherent relationships between stablecoin scale, securities market returns, and cross-border capital flows are revealed. The research shows that Nasdaq's innovative practices demonstrate the function of stablecoins as "bridge assets," but they also bring risks such as erosion of monetary sovereignty, cross-border regulatory frictions, and market manipulation. Based on theoretical deductions and case verifications, this paper puts forward policy suggestions in three aspects, providing a new theoretical framework and policy reference for global cross-border capital flows and the evolution of the monetary system.

Keywords

Nasdaq; Stablecoins; Cross-Border Capital Flows; Dynamic Optimization; Value Closed Loop; Monetary Sovereignty

References

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