Author: Yue Xiaoyu
The Stablecoin War Has Begun.
With the implementation of the US Stablecoin Bill (GENIUS), traditional finance is accelerating its entry, and currently, six major forces have formed:
The first major force is Tether, which issued USDT.
Tether has aligned with Commerce Secretary Roustaing.
This camp also includes Bitfinex, Cantor Fitzgerald (where the Commerce Secretary was previously CEO), CEP (Commerce Secretary's son + SoftBank investment), and Bit Deer (Tether holds 25.5% stake).
USDT has a market cap of $150 billion, with a market share of 66.5%, already holding an absolute dominant position in the market.
The second major force is the Coinbase and Circle consortium.
They haven't secured significant political resources, but their future potential lies in scenario resources.
For example, Meta is not a financial company and cannot issue stablecoins, so they are currently negotiating with Circle, using Instagram as a pilot, with stablecoins for small tip transactions.
Circle's USDC has a market cap of $61 billion, with a market share of 28.3%, and can be considered the leading compliant stablecoin.
The third major force is USD1 issued by the Trump family.
The Abu Dhabi Royal MGX Sovereign Wealth Fund and Binance are also in this camp.
Initially, MGX invested $2 billion in Binance, entirely paid with the USD1 stablecoin issued by the Trump family.
Moreover, USD1 was first launched on Ethereum's Uniswap and BNB Chain's Pancake.
This group has the strongest political influence, but also the largest implicit political risks.
The fourth major force is Stripe, which issued the USDB stablecoin after acquiring Bridge.
Stripe is the world's largest traditional payment solution provider, thus having a very strong payment scenario advantage.
The fifth major force is Paypal, which issued PYUSD.
PayPal has a massive user base but lacks promotion.
It was previously popular on the Solana chain, even attracting users with high interest rates of 15% to 20%.
However, after many years, it has only reached $900 million, seemingly not very adept at operations.
The sixth major force is an alliance of major US banks like Morgan Stanley, Citibank, Wells Fargo, and payment platforms like Zelle, jointly issuing a stablecoin.
The advantage of this top-tier bank alliance is high reputation, while the disadvantage is the difficulty of coordination.
What will the future market landscape of the stablecoin track look like?
It can be benchmarked against the exchange market: exchanges can be divided into offshore and compliant exchanges, and stablecoins can similarly be divided into offshore and compliant stablecoins.
USDT is undoubtedly the offshore stablecoin leader, while USDC is the leader in compliant stablecoins.
Does this mean other stablecoins have no chance?
Actually, in different countries and regions, and different business domains, many "local tyrants" will emerge as local leaders, such as Hong Kong's HKD stablecoin or Stripe's stablecoin in the e-commerce field.
These local leaders are like small tentacles, penetrating digital dollars into various edge regions and niche business scenarios.
The future stablecoin market will definitely see a "Hundred Coin War", and we can look forward to the development of stablecoins.
