Who understands, family! In the bustling 'big river and lake' of cryptocurrency, Bitcoin and Ethereum are surely the renowned 'martial arts masters', always sitting firmly atop the 'coin circle' with unlimited glory, being the center of attention wherever they go. But who would have thought that just at the beginning of June, a major upset occurred— the average daily trading volume of dollar stablecoins skyrocketed like a rocket, suddenly surpassing Bitcoin and Ethereum! It’s like at a martial arts tournament, the once unnoticed 'transparent player' suddenly defeated two top masters, leaving everyone in shock.
At this moment, Standard Chartered Bank has come out to 'stir things up' again, throwing out a super bold prediction: in the next three years, companies issuing stablecoins are very likely to become the 'second-in-command' of U.S. Treasury bonds! Once this news broke, the entire financial circle exploded with discussions: this stablecoin is going to 'rebel'!
Let's have a good chat about what secrets are hidden behind this, and what this prediction signifies.
Stablecoins: From 'Invisible Player' to 'Popular One'
In the past, stablecoins were like that inconspicuous classmate who quietly stayed in the corner, with not many people paying attention. But now it's different; the frequency of using stablecoins for buying and selling things, and for transfers and payments, has skyrocketed. It’s like the once invisible student has suddenly become the 'popular one' in class, attracting followers wherever they go. Although Bitcoin and Ethereum are well-known, they are like those high-profile 'stars'—shiny on the outside, but when it comes to getting things done, stablecoins are the grounded 'pragmatists' that can handle the heavy lifting. The focus of the cryptocurrency 'world' has also shifted from a frenzy of speculation to solid foundation building. Stablecoins are gearing up to successfully 'counterattack' and become the new protagonists in the crypto world!
Stablecoin Issuers: Hidden 'Super Tycoons'
Stablecoin issuers are truly the 'super tycoons' who are keeping a low profile. To maintain the value of stablecoins, they have invested most of their reserves in U.S. Treasury bonds. It’s like they have a super large 'money bag'; the larger the transaction volume, the more money they can stuff into the 'money bag', and the amount of U.S. Treasury bonds they buy will also rise accordingly. When Standard Chartered says they might become the second-largest buyers of U.S. Treasury bonds within three years, it’s not a joke. Just imagine if it actually happens, how much money that would be! It’s like a group of suddenly appearing 'mysterious tycoons' rushing into the U.S. Treasury bond market 'supermarket', shaking up the 'territory' of traditional financial giants. The landscape of the bond market may be completely rewritten by them, and traditional financial giants are probably stamping their feet in anxiety.
Financial Circle: A 'Battle of New and Old Forces' is About to Unfold
For a long time, the U.S. Treasury bond market has been like a 'luxury club' dominated by 'old aristocrats' such as central banks and large funds, making it difficult for outsiders to get a foot in. But now, a group of 'newly rich' stablecoin issuers, who started by issuing 'digital dollars', are swaggering into this 'club', and this is simply the prelude to a 'Battle of New and Old Forces'! What the future financial world will look like is uncertain. It could be a handshake between new and old forces, singing and dancing together on this 'big stage'; or it could be a fierce transformation where it's a life-or-death struggle that turns the entire financial circle upside down. Traditional financial institutions are probably tearing their hair out, wondering whether to resist these 'newly rich' or to lower their stance and cooperate for mutual benefit.
In short, stablecoins, this 'dark horse', are no longer the sidekick of Bitcoin, but have transformed into the 'great hero' capable of reshaping the crypto world and even the entire financial system. The capital movements behind them are like a mysterious grand play, quietly changing the future economic landscape. Let’s grab our little stools and wait to see how this financial 'grand play' will unfold!
