Stablecoin: A New Chapter in Financial Infrastructure

In the current environment where stablecoins are rapidly developing yet constantly controversial, the true trends are often obscured by market noise. To reveal the actual context in this field, an English video program focuses on the global movements of stablecoins. From questioning the value of stablecoins by the founder of a fintech company, to large payment companies investing heavily in building stablecoin infrastructure; from e-commerce platforms integrating stablecoin payment solutions, to tech giants competing for stablecoin licenses in multiple regions. Meanwhile, a Bitcoin sidechain project has quickly attracted a large amount of funding. Is this a brief speculative craze, or the beginning of a new financial order?

This article will deeply analyze the divergences surrounding stablecoins: on one side is the cautious attitude of fintech giants, while on the other side is the rapid acceptance of the digital dollar by Web3 companies and global users. This is not only a route dispute within the crypto industry but also a global game concerning the dominance of the next generation of financial infrastructure.

Doubts About Stablecoins

A co-founder of a well-known fintech company has expressed strong doubts about stablecoins. He believes that in major currency payments, stablecoins not only do not reduce costs but actually increase transaction fees, especially during on-chain transactions and fiat currency exchanges, failing to bring substantial improvements for large-scale B2B payments.

The founder stated that the fintech sector has achieved near-instant, low-cost cross-border payments through the establishment of proprietary banking networks and foreign exchange bridges, and that stablecoins have not provided significant advantages. He believes that stablecoins may have applications in emerging markets and among unbanked populations, but overall, they are more about "regulatory arbitrage" rather than truly benefiting end users and businesses.

Rapid Embrace of Institutions

In stark contrast to the cautious attitude mentioned above, a number of tech giants and institutions are vigorously embracing stablecoins:

• A certain payment giant: investing heavily to build a complete ecosystem of stablecoins and crypto wallets through acquiring startups. The company is launching stablecoin products in multiple countries and plans to cover all its merchants by the end of the year.

• Depository Trust & Clearing Corporation (DTCC): As the behind-the-scenes clearing house for nearly all securities transactions in the United States, DTCC is piloting a dollar-backed stablecoin to achieve settlement modernization. This signals the potential for moving from T+2 to real-time settlement, taking the first step towards putting stocks on the blockchain.

• A large bank in Europe: Launched a US dollar stablecoin compliant with MiCA regulations, custodied by the Bank of New York Mellon, issued on multiple blockchains, marking the entry of European traditional financial institutions into the stablecoin space.

• A Chinese payment giant: is preparing to apply for a stablecoin issuance license, aiming to cover multiple digital asset regulatory frontier zones. Especially with Hong Kong about to implement a stablecoin issuance licensing system, the company intends to seize the market with a first-mover advantage.

The Explosion of Market Demand: A Case Study of a Bitcoin Sidechain Project

Although some fintech founders are cautious about the prospects of stablecoins, the other end of the market presents a completely different picture: retail investors and innovative experiments on emerging chains are advancing at an unprecedented pace.

A recent token-related event held by a certain Bitcoin sidechain project had a deposit amount reaching up to $1 billion. It is reported that this event attracted around 3,000 wallets, with median deposits of $24,895 and $6,939 in the two rounds. Notably, 58% of the funds came from USDC, while 40% came from USDT. It is important to note that these deposits were not directly used for token sales, but rather to gain priority access for future token sales.

The high participation and quick sell-out of this event may be related to the institutional support the project previously received, but some believe that certain investors may have misunderstandings about the project's actual situation. Nevertheless, industry insiders remain cautious about the necessity of the project launching an independent chain, believing that there may be a certain degree of overheated speculation in the current market.

The Significance of Stablecoins: Contending for Control of Financial Infrastructure

Currently, we are witnessing an important transformation regarding the future of financial infrastructure. Although some traditional fintech companies remain skeptical, an increasing number of financial giants are actively entering the stablecoin space. This is not just a debate about cryptocurrency; it is a critical battle that will determine the direction of the next generation of financial infrastructure. In this transformation, stablecoins are gradually evolving from a controversial concept to a core infrastructure that will reshape the global payment system.