The popularity of stablecoins is no longer a topic of discussion 🔥, not only in the crypto space but also frequently mentioned in traditional finance. Recently, discussions around dedicated stablecoin blockchains have also increased.
💡 Stripe announced it will pursue blockchain; USDC issuer Circle plans to launch its own chain; Tether (USDT) has invested in several chain projects tied to itself, such as Plasma and Stable; Robinhood is also set to launch a chain (though not a dedicated stablecoin chain); even JPMorgan and Fidelity are joining in.
I believe that the issuance and usage of stablecoins will continue to rise 📈, but whether 'dedicated stablecoin chains' are meaningful, I have a big question mark ❓.
Three core links
The related businesses of stablecoins are generally divided into three categories: issuance, payment, and settlement.
Issuance: 💰 The most profitable, because the issuer can obtain the yield from collateralized dollars without paying interest to users. For example, Tether has a huge advantage, and Circle is also ahead of most latecomers, but competitors will find it challenging to catch up in this field.
Payment and settlement: 📉 The imagination space is limited. The cost of public chain transfers is already close to zero and will be driven to zero by competition in the future. This is good for users, but there is hardly any profit for businesses.
Since public chains like Ethereum and Solana can already efficiently handle stablecoin transfers, why would users want to move to smaller, less secure dedicated chains just for a version with fewer functions?
Concerns about stablecoin chains ⚠️
Some stablecoin chains' technical designs do not possess true decentralization characteristics.
For example:
The USDC chain may only be a set of pre-approved validation nodes, lacking open economic incentives;
Circle's chain is more like a multi-merchant database capable of running EVM code, rather than a complete Layer 1;
No matter how the chain changes, Circle and Tether can still directly freeze, revoke, or deny transactions, and ultimately the final ledger is still controlled by centralized companies.
Stripe's chain is likely just an internal tool for its payment business 🛠️, and whether it is adopted externally does not significantly affect it; Circle is very concerned about whether its chain can gain market recognition.
The real opportunity is not here 🚀
For certain DeFi application scenarios, dedicated stablecoin chains may be useful, but payment and settlement are not the most promising directions.
The bigger opportunity lies in blockchain making the dollar 'networked':
💱 The dollar can flow automatically like data;
📊 Funds can automatically go to where they can create the most value;
💹 Create additional income for holders in the background.
When the entire industry is caught up in low-profit payment and settlement businesses, the winners will be those companies that can truly expand the utility of funds and unlock new value 🏆.
