The recent official launch of the full island closure operation in Hainan is quite a big deal—transshipment trade at Singapore ports has dropped by 11%. In simple terms, when goods enter and enjoy a 74% zero-tariff on commodities, with customs clearance five times faster than Singapore, who would still want to take a detour?

But the deeper logic behind this transformation is even more interesting. The trade barriers in the physical world have been broken down, and the "front-line liberalization and internal island freedom" approach is beginning to reshape global commerce flows. However, this also exposes an awkward reality: while the circulation of goods becomes extremely free, the financial settlement systems supporting trade are still relying on outdated methods—slow, heavily regulated, and costly. This mismatch is forcing people to seek the next generation of financial infrastructure.

At this point, a decentralized stablecoin network built on blockchain technology appears particularly promising. Take USDD, for example—it is essentially working on one thing: creating a "Digital Freeport." Assets flow on-chain, not restricted by any single jurisdiction, with settlements fully automated through smart contracts, truly achieving "internal island freedom." The over-collateralization mechanism, combined with on-chain transparency, builds a credit foundation that is more robust than traditional letters of credit, with less friction and higher efficiency.

Hainan eliminates tariff barriers on the physical level, while blockchain stablecoins remove liquidity obstacles on the financial level—both lines breaking simultaneously is the way forward in this era.