Recently, the most heated topic of discussion among global financial professionals is undoubtedly the crazy surge of #Circle after its listing on the US stock market. Many Web3 participants hold a pessimistic attitude towards this phenomenon, even choosing to short, while Web2 investors rush in due to FOMO (fear of missing out). This astonishing growth momentum has made many traditional financial giants uneasy, forcing them to take seriously the potentially revolutionary global impact brought by stablecoins.
Recently, @CryptoHayes mentioned in his article (Libra: Zuck Me Gently) that during a discussion about stablecoins with a board member of a large bank, the other party said, 'We're doomed.' They believe the rise of stablecoins is unstoppable, especially mentioning the situation in Nigeria. They noted that although the central bank severely prohibits cryptocurrencies, USDT has already penetrated the country's economy, with one-third of GDP transacted through USDT.
In areas with high inflation and severe exchange rate fluctuations, stablecoins, blockchain wallets, and innovative tools like U-cards are like 'lifelines' and have been welcomed early on. After all, relying solely on administrative measures to control this situation is like trying to hold a slippery fish with chopsticks—it's too difficult!
Unlike the past underground black market, the characteristics of stablecoins and blockchain make regulation as difficult as playing hide and seek; they have seemingly become the 'financial version of the Starlink system.' Funds flow freely, bypassing the central bank of their home country, feeling like a cheat code that puts them directly on the 'financial highway.' This is not just a financial reform, but rather a 'tug-of-war' between national sovereignty and market openness.
The 'minting rights' of small countries may be weakened in this situation, even to the point of being as fragile as a thin cookie that crumbles with a gentle touch.
The exciting dream during the DeFi Summer—flattening global finance—is transforming from a 'daydream' into reality. Imagine this: users in Nigeria, Namibia, the Philippines, India, and even other countries can exchange their local currency for stablecoins, then choose a DeFi protocol for investment (like USDe), enjoying nearly 10% returns. How does that feel? It's like the financial world has issued a 'VIP membership card' to everyone! Fields such as asset management, stablecoins, RWA, wallets, etc., will attract a large number of new users, as if a 'financial carnival' is unfolding.
This is like when we could only make local calls, with long-distance fees being exorbitant and international long-distance calls being unimaginable. However, the rise of the internet has made global communication almost costless, making communication more convenient; the world seems to have become a touchable global village.
This is a financial revolution that could change countless lifestyles, and we are standing at the beginning of this revolution. Greater changes will come from countries with relatively stable monetary systems, such as the United States.
Once related policies are passed and digital dollars are legalized, mainstream financial institutions will enter this field on a large scale. Banks and payment giants (like Visa and PayPal) will directly launch their own digital currencies, while some early participants (like Circle, etc.) will also accelerate the expansion of their digital currency businesses.
The overall market size of digital currencies will rapidly grow from the current approximately $160 billion to $500 billion, becoming an important channel for digital payments, while the payment settlement, artificial intelligence, gaming, and other ecosystems based on digital currencies will gradually achieve standardization.
With policy changes, increased media coverage, major institutions scrambling to enter the market, and high-level promotion, the number of people holding digital currencies will significantly grow in developed countries like the United States, and the proportion of people using digital wallets will also rise substantially, laying a solid foundation for the development of new forms of the internet in the future.
As digital currencies are applied in more countries' financial systems, it will bring hundreds of millions of new users, injecting more vitality into the entire market.
Potential opportunities for retail investors:
1. Investment opportunities: With a 100% reserve requirement in US Treasuries, stablecoins will become a 'digital treasury bond ETF,' and US Treasuries will become the main source of stablecoin underlying yields. Therefore, the annualized yield for users holding stablecoins may rise from 0% to 3-5%, approaching Treasury yields.
2. #defi Project: Old players in DeFi know that DeFi is like financial Lego/Tetris; many variations can be created based on the underlying yield of US Treasuries, thereby increasing the yield of stablecoins.
Apart from the current leader $AAVE , other established projects like Ethena, Pendle, and even Frax have opportunities to benefit.
3. #RWA Track: The integration of yield-bearing stablecoins (with interest) and RWA (real-world assets) protocols will become a trend; on-chain bonds and asset pools will directly support stablecoins.
Now even #coinbase is trying to directly support stock on-chain (tokenized stocks); RWA is indeed on the rise.
RWA series tokens—whether old or new—will have more opportunities than other traditional crypto tracks. Currently, what I am most concerned about is the compliance of $ONDO and $PLUME stablecoins, which is a significant event for the reconciliation/integration of cryptocurrency with the real world, potentially affecting the lives of hundreds of millions of ordinary people. There are also huge opportunities hidden here; the unexpected surge of CRCL beyond the expectations of the crypto circle is just one sign.
