According to Deep Tide TechFlow news on August 20, a recent report by Bank of America has thoroughly analyzed the potential transformative power of stablecoins in the financial system. It points out that although this digital asset faces regulatory controversies, it has already demonstrated unique advantages in cross-border transactions and retail settlements. The report clearly states that cross-border peer-to-peer (P2P) payments are the most disruptive application scenario for stablecoins—offering significant efficiency and cost advantages compared to traditional banking systems, and could become an important channel for capital flow in emerging markets.
Notably, Shopify's initiative to allow merchants to accept USDC stablecoins has been seen as a landmark event in retail penetration. Recently, the on-chain repurchase transaction of tokenized USTs further highlights institutional investors' recognition of the settlement function of stablecoins. In terms of market demand, Bank of America estimates that the potential demand for stablecoins in U.S. Treasury bonds over the next 12 months could reach between $25 billion and $75 billion, but this is insufficient to reverse the supply and demand dynamics in the Treasury market in the short term.
More concerning is its impact on money market funds (MMFs): some MMF clients have explicitly stated that they will accelerate the tokenization process, providing real-time interest payments through on-chain systems to cope with competitive pressure. Taking the stablecoin issued by Circle (CRCL.US) as an example, the Coinbase (COIN.US) platform has indirectly circumvented the prohibition on interest payments imposed by the Financial Innovation Act (GENIUS) through a reward mechanism, reflecting the market's innovative path to avoid regulation.
