Beijing, China – October 14, 2025 — The Cheung Kong Graduate School of Business (CKGSB) hosted an academic seminar in Beijing and online, featuring Professor Simon Mayer from Carnegie Mellon University’s Tepper School of Business. The event brought together leading scholars to discuss the future of financial intermediation and the regulatory challenges posed by digital currencies such as stablecoins.
The seminar formed part of CKGSB’s distinguished academic exchange series, which regularly welcomes scholars from top schools around the world. Following the discussion, CKGSB Associate Professor of Finance Zhang Xingtan reflected on the event’s importance, noting that such seminars play a vital role in keeping the school connected to global research frontiers.
“This was a great exchange of ideas on some of the most cutting-edge topics in our field,” Professor Zhang said. “Engaging with a professor from a top university like Carnegie Mellon makes the dialogue particularly inspiring and insightful.”
Professor Zhang emphasized that hosting academic seminars is an important part of CKGSB’s commitment to research and knowledge sharing. “Hosting seminars like this demonstrates that CKGSB is deeply committed to promoting academic exchange and engaging with the broader academic community,” he added. “In 2025 alone, we’ve welcomed professors from UC Berkeley, Wharton, Stanford, and London Business School. These interactions help our faculty stay at the forefront of research and challenge existing assumptions.”
Simon Mayer, Assistant Professor in Finance at Carnegie Mellon University and Associate Editor (Finance) of Management Science, shared insights from his latest paper, “Financial Intermediation with Fragile Seigniorage: A Dynamic Model of Stablecoin Issuers,” which provides a rigorous economic model of stablecoin risk.
“Stablecoins have become a key focus of both market participants and regulators,” Mayer said. “Recent developments — such as the introduction of the U.S. GENIUS Act and large-scale equity financings by leading stablecoin issuers — highlight their growing importance in global finance.”
Mayer’s research introduces a “risk paradox,” which argues that reducing the riskiness of reserve assets can actually increase the likelihood of depegging, contrary to conventional thinking. His paper provides a framework for understanding how stablecoin issuers should manage reserves, equity financing, and risk exposure, and how regulation can balance stability with innovation in digital finance.
He noted that the discussion with CKGSB faculty was both stimulating and constructive. “The feedback I received here was incredibly valuable,” Mayer said. Several participants raised thought-provoking questions about stablecoins’ market competition and the future of financial stability and regulation.
“We have four or five large stablecoins now, yet going forward we expect competition among stablecoins to grow tremendously,” said Mayer. “It would be interesting, to examine how the market will evolve and what are the implications for both the stability of these stablecoins and the potential regulatory responses. In the seminar I received many comments in that direction, which I’m interested in following up on.”
Reflecting on his visit, Mayer expressed appreciation for CKGSB’s dynamic academic environment. “It’s my first time at CKGSB, and I’ve been deeply impressed by the level of engagement,” he shared. “The one-on-one meetings after the seminar allowed for meaningful exchanges about ongoing research. CKGSB has a lean, dynamic faculty working on fascinating topics — ranging from finance to AI and innovation.”
Such exchanges, Mayer emphasized, are essential for advancing understanding in rapidly evolving fields like digital finance. “I hope that my research offered useful insights, but I also learned a great deal from the conversations here. The mutual learning experience is what makes these visits so valuable,” he added.
CKGSB’s seminar series reflects the school’s commitment to original research and academic exchange. By connecting scholars from leading institutions worldwide, CKGSB convenes differing perspectives to address today’s most critical questions in finance and economics.
With 55 world-class professors, many formerly tenured at top universities such as Chicago, Columbia, Darden, Michigan, MIT, Wharton, and Yale, CKGSB has become one of Asia’s leading research hubs. Their international experience and insight strengthen the school’s role as a bridge between global thought leadership and China’s dynamic economy.
