The Controversy and Future of Stablecoins: The Game of Financial Infrastructure

In today's rapidly developing yet controversial landscape of stablecoins, the real trends are often overshadowed by the market's clamor. To unveil the true context of this field, we conducted an in-depth analysis of the global movements of stablecoins.

On one hand, the co-founder of a fintech company bluntly stated that "stablecoins are meaningless." On the other hand, several tech giants and financial institutions are vigorously embracing stablecoins: a certain payment technology company invested over $1 billion to build stablecoin infrastructure; a certain e-commerce platform integrated a stablecoin payment solution; a certain payment giant applied for stablecoin licenses in multiple jurisdictions.

Meanwhile, a Bitcoin sidechain project attracted nearly 3,000 wallets injecting $1 billion in stablecoin funds in just 30 minutes. Is this a fleeting speculative frenzy or the prelude to a new financial order?

This article will deeply analyze the split surrounding stablecoins: on one side are the calm observations of fintech giants, and on the other side is the rapid embrace of the digital dollar by Web3 companies and global users. This is not only a struggle for routes within the crypto industry but also a global game regarding the dominance of next-generation financial infrastructure.

Questions About Stablecoins

The co-founder of a fintech company holds a strong skeptical attitude towards stablecoins. He believes that in major currency payments, stablecoins not only fail to reduce costs but instead increase transaction fees, especially in on-chain transactions and fiat currency exchanges, and do not provide substantial improvements for large-scale B2B payments.

He believes that the fintech sector has achieved nearly instant and low-cost cross-border payments through the construction of proprietary banking networks and foreign exchange bridges, and that stablecoins have not brought significant advantages. They may have applications in emerging markets and among unbanked populations, but overall, they represent more of a "regulatory arbitrage" than a benefit to end users and businesses.

Rapid Embrace by Institutions

In sharp contrast to the aforementioned cautious attitude, a group of tech giants and institutions are embracing stablecoins.

• A payment technology company has acquired a wallet infrastructure startup and purchased a stablecoin infrastructure company for $1.1 billion, aiming to build a complete ecosystem of stablecoins and crypto wallets. The company is launching stablecoin products for the US, UK, and Europe, and plans to cover all its merchants by the end of the year. An e-commerce platform and a cryptocurrency exchange have also joined the ranks, supporting merchants to directly accept USDC, and even incentivizing merchants to retain USDC rather than immediately converting it to local fiat currency, thereby reducing currency conversion costs.

• The U.S. Depository Trust & Clearing Corporation (DTCC): As the behind-the-scenes clearinghouse for nearly all securities transactions in the U.S., DTCC has an annual trading volume of up to $20 trillion and is piloting a dollar-backed stablecoin to achieve settlement modernization. This signifies the potential for moving from T+2 to instant settlement, taking the first step towards putting stocks on the blockchain.

• A European bank has launched a US dollar stablecoin compliant with MiCA regulations, custodied by a US bank, issued on the Ethereum and Solana chains, marking the entry of European traditional financial institutions into the stablecoin space.

• A certain payment giant is preparing to apply for a stablecoin issuance license, aiming to cover leading regulatory areas for digital assets such as Hong Kong, Singapore, and Luxembourg. In particular, Hong Kong is about to officially implement the stablecoin issuance licensing system in August, and the company intends to seize market share with a first-mover advantage. As a highly influential payment giant, the launch of its stablecoin will further promote innovations in cross-border payments, fund management, and settlement.

The Explosion of Market Demand: The Plasma Case

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 speed.

In a recent token-related event hosted by Plasma, the deposit amount reached as high as $1 billion. It is reported that the event attracted approximately 3,000 wallets to participate, with median deposits of $24,895 and $6,939 in the two deposit rounds, respectively. Among them, 58% of the funds came from USDC and 40% from USDT. Additionally, some users paid transaction fees as high as $100,000 to ensure transaction speed. It is worth noting that these deposits are not directly used for token sales, but rather to gain priority access for future XPL token sales.

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

The Significance of Stablecoins: Controlling Financial Infrastructure

Currently, we are witnessing a significant transformation in the future of financial infrastructure. Although there are still traditional companies, like certain fintech firms, that remain skeptical, an increasing number of financial giants, from payment behemoths to banks, are actively positioning themselves in the stablecoin space. This is not just a debate about cryptocurrencies; it is a crucial battle that will determine the direction of the next generation of financial infrastructure. In this transformation, stablecoins are evolving from a controversial concept into a core infrastructure that will reshape the global payment system.