This study reviews the literature about stablecoins, including algorithmic and non-algorithmic ones. The study delivers a concise, policy-oriented report that maps how artificial-intelligence applications can amplify the benefits-and mitigate the risks-of Hong Kong dollar (HKD) stablecoins under the Stablecoin Regulation 2025. Using only publicly available documents, market data and desk research, the project (i) constructs a chronological policy timeline, (ii) inventories all existing HKD stablecoin projects, (iii) identifies AI use-cases already piloted in Hong Kong’s Web3 regulatory sandbox, and (iv) synthesises a SWOT matrix highlighting regulatory, technical and market opportunities. The final deliverable is a 2000-word English report accompanied by one page of simple Excel charts intended as a ready-to-share briefing for policymakers, issuers and investors. Students should seek the course instructor’s approval to take this course.