Winners in the Stablecoin Frenzy: A Comprehensive Analysis from Application to Promotion

With the leading companies in the compliant stablecoin sector going public, the benchmark effect has sparked widespread attention to stablecoins domestically. Various stablecoin payment conferences are being held frequently, companies are actively organizing learning sessions, and the cryptocurrency community is engaging in lively discussions. Behind this bustling scene, we can't help but ask: Who is actually profiting from this?

In fact, the development of stablecoins can be divided into three stages, each of which has different roles that can benefit from it.

The first stage is applying for a license. Currently, most companies choose to apply for a license in Hong Kong because compliance is the top priority. However, the regulatory requirements in Hong Kong are very strict, and many companies find it difficult to determine how to meet these requirements. At this stage, law firms become the first beneficiaries. They provide legal consulting services to companies applying for licenses, assist in preparing materials, and communicate with regulatory agencies.

The second phase is to build the technical foundation. Many companies choose to start building their technical systems while applying for licenses, so that they can quickly launch their own stablecoins and seize market opportunities after obtaining the licenses. The development of the stablecoin payment system involves multiple complex aspects, including compliance services, asset management, token issuance, liquidity management, and security services, among others. Specifically, this includes various areas such as KYB, KYT, AML, order management, address management, clearing and settlement, deposits and withdrawals, contract auditing, and on-chain security. Since traditional Web2 companies often lack blockchain development experience and relevant talent, they need to collaborate with Web3 technology service companies. Therefore, at this stage, many crypto technology service providers begin to acquire clients and generate revenue.

The third phase is channel promotion. Once the company obtains the license and completes technical preparations, it can officially start operating its business. Although most companies are still in the first or second phase, once they enter the business operation stage, the market will face intense competition. For stablecoins, liquidity is crucial. Various stablecoins need to find suitable business scenarios to expand their usage scale. Therefore, channel promotion becomes particularly important, requiring collaboration with influential channels. Referencing the successful case of a well-known stablecoin, its rapid rise largely depended on the strong support of a major trading platform, which provided ample liquidity and brand endorsement. This points to a clear development path for Hong Kong stablecoin participants, which involves collaborating with various channels to seize market share. In this highly competitive stage, various channels, including exchanges, e-commerce platforms, and cross-border trading companies, will become the biggest beneficiaries.

After these three stages, only the stablecoin that stands out can truly start to make a profit. Typically, one stablecoin will become the leader in the Hong Kong region or Chinese-speaking areas, squeezing out the space of other competitors and using the siphon effect to acquire the majority of market share. Once a solid market position is established, the stablecoin issuer can begin to enhance its profitability.

This development trajectory is similar to the competitive landscape in other domestic industries, such as ride-hailing, bike-sharing, and food delivery. Initially, there is a chaotic battle, but ultimately one player will emerge victorious, achieving a winner-takes-all scenario. After the initial subsidy war, leading companies need to recuperate, reduce subsidies, and increase prices to achieve profitability. At this stage, profitability may reach astonishing levels, and the profitability of stablecoin issuers mainly relies on their large asset scale.

For ordinary users, there are also arbitrage opportunities during the process where emerging stablecoin forces compete for market and liquidity through subsidies.

Overall, the surge of stablecoins can be described as a situation of "big water nurturing big fish"; the key is to seize your own opportunity.