The Blue Ocean Opportunities and New Regulations in the Stablecoin Market

Recently, the stablecoin sector has witnessed a series of significant changes. Circle, as a leading company in the stablecoin industry, has attracted widespread market attention due to its outstanding performance post-IPO. Behind this phenomenon, the GENIUS stablecoin bill passed by the U.S. Senate is undoubtedly the most crucial catalyst.

The core content of the bill includes establishing a dual-track regulatory system, requiring a 1:1 reserve ratio, strengthening information disclosure and audit mechanisms, setting licensing and compliance requirements, enhancing anti-money laundering and sanctions compliance, and protecting consumer rights. These measures aim to create a more standardized and transparent operating environment for the stablecoin market.

It is worth noting that the strict restrictions on reserve assets in the bill may have far-reaching effects. The allowed reserve assets only include highly liquid, low-risk assets such as US dollar cash, insured bank deposits, and short-term US Treasury bonds. This provision not only enhances the security of stablecoins but may also inject new vitality into the US debt market.

Financial experts predict that by 2028, the global stablecoin market value could exceed $2 trillion. This means that stablecoin issuers are expected to become the third largest holders of U.S. Treasury bonds, only behind the Federal Reserve and foreign central banks. This trend could lower the borrowing costs for the U.S. government while strengthening the dollar's position as the global reserve currency.

For investors, the passage of the stablecoin bill brings new opportunities to the field. In addition to directly investing in stablecoin issuers like Circle, other aspects of the stablecoin industry chain are also worth paying attention to. This includes distribution channels for stablecoins, application scenario development, technical support services, and more.

It is particularly worth mentioning that in niche markets such as cross-border small payments, stablecoins may bring revolutionary changes. Compared to the traditional SWIFT system, stablecoins can achieve almost instantaneous transactions at very low costs, creating huge opportunities for innovative financial service providers.

In the secondary market, besides Circle, other listed companies related to stablecoins may also benefit. For example, some large trading platforms may gain considerable profits from stablecoin operations. Moreover, as the scale of stablecoins expands, lending protocols and yield aggregation platforms in the DeFi space may also usher in new development opportunities.

Overall, with the clarification of the regulatory environment and the expansion of the market scale, the stablecoin industry is entering a new stage of development. This not only brings new opportunities for investors but may also have far-reaching effects on the global financial system. In this new field full of opportunities, innovation and compliance will become key factors for success.