The stablecoin war has begun.
With the implementation of the US stablecoin bill (GENIUS), traditional finance is accelerating its entry into the market, which has currently formed six major factions:
The first major faction is Tether, which issued USDT.
Tether has aligned itself with Secretary of Commerce Gutnick.
This faction also includes Bitfinex, Cantor Fitzgerald (where the Secretary of Commerce previously served as CEO), CEP (Secretary of Commerce's son + SoftBank investment), and BitDeer (Tether holds 25.5%).
USDT has a market capitalization of $150 billion and a market share of 66.5%, already occupying an absolute dominant position in the market.
The second major faction is the Coinbase and Circle consortium.
They lack significant political resources but their future explosive growth lies in scenario resources.
For example, Meta itself is not a financial company and cannot issue stablecoins, so it is negotiating with Circle to collaborate, using Instagram as a pilot to allow small tips using stablecoins.
Circle's USDC has a market capitalization of $61 billion and a market share of 28.3%, which can be considered the top compliant stablecoin.
The third major faction is USD1 issued by the Trump family.
Abu Dhabi's royal family MGX sovereign fund and Binance are also part of this faction.
Initially, MGX invested $2 billion in Binance, and all payments were made using the Trump family's issued stablecoin USD1.
Moreover, USD1 was first launched on Ethereum's Uniswap and BNB chain's Pancake.
This group's political influence is the strongest but also carries the greatest implied political risk.
The fourth major faction is Stripe, which issued the USDB stablecoin after acquiring Bridge.
Stripe is the world's largest traditional payment solution provider, thus has a very strong payment scenario advantage.
The fifth major faction is PayPal, which issued PYUSD.
PayPal has a huge user base but insufficient promotion.
It previously gained significant traction on the Solana chain, even offering high dividends of 15% to 20% to attract users.
However, over the years, it has only generated $900 million, suggesting it is not particularly adept at operations.
The sixth major faction consists of major US banks such as JPMorgan, Citigroup, and Wells Fargo, along with Zelle, which resembles American Alipay, forming an alliance to jointly issue a stablecoin.
The advantage of this top bank alliance lies in its high credibility, while the disadvantage is the difficulty of coordination.
What will the future market landscape of the stablecoin track look like?
Actually, it can be compared to the market structure of exchanges: exchanges can be divided into offshore and compliant, and stablecoins are similarly divided into offshore stablecoins and compliant stablecoins.
USDT is undoubtedly the leader of offshore stablecoins, while USDC is the leader of compliant stablecoins.
Does this mean that other stablecoins have no chance?
In fact, in different countries and regions, as well as different business areas, there will also emerge many local leaders akin to 'local tyrants', such as the Hong Kong dollar stablecoin and Stripe stablecoin in the e-commerce sector.
These local leaders act like small tentacles, penetrating digital dollars into various marginal areas and segmented business scenarios.
The future stablecoin market will certainly witness a 'battle of a hundred coins', and we can look forward to the development of stablecoins.
@Tether_to @circle @LaunchOnUSD1 @stripe @PayPal @humafinance
