How much does it cost to issue a stablecoin?
Stablecoins seem to earn interest with ease, but in reality, they have high thresholds and require substantial capital. The costs for legal and compliant issuance are broken down as follows:
Compliance: Obtaining licenses like the US MSB and EU MiCA, building KYC/AML systems, costs tens of millions of dollars annually, comparable to a medium-sized bank.
Reserves: Custody of user dollars to buy US Treasuries, with a scale exceeding $1 billion, incurring custody fees, clearing, and liquidity management costs of tens of millions of dollars each year.
Technology: Smart contracts, multi-chain systems, node operation and maintenance, and security risk control, with annual costs in the millions of dollars.
Circulation: Must enter trading platforms, wallets, and payment scenarios, with high distribution costs. USDT relies on first-mover advantage, USDC depends on channels, and PYUSD still struggles to break through despite heavy spending.
Issuing a stablecoin starts at tens of millions of dollars, requiring a full set of capabilities in licensing, funding, technology, and channels; it is not lightweight entrepreneurship, but rather a tough battle for financial infrastructure.
