Stablecoin: $2 trillion blue ocean creates new opportunities in the Crypto Assets field

Stablecoins are a concept that is already very familiar to practitioners in the Web3 industry. From the very first day of entering the Crypto Assets trading space, purchasing stablecoins has become standard practice. So, why have leading companies in the stablecoin sector achieved an astonishing threefold increase in stock price within just two weeks of going public?

The key catalyst for this phenomenon originates from the recent passage of the GENIUS stablecoin bill by the U.S. Senate. The core content of the bill includes:

1. Establish a dual-track regulatory system for federal and state levels to set clear rules for the stablecoin market.
2. Require stablecoins to maintain a 1:1 reserve ratio, and only high liquidity, safe assets are allowed.
3. The issuer must regularly disclose reserve status and undergo independent audits.
4. The issuer must apply for a license and comply with banking regulatory requirements.
5. Comply with anti-money laundering regulations and establish a customer identification system.
6. Protect consumer rights and ensure that coin holders have priority claims in the event of the issuer's bankruptcy.

The reserve requirements in the bill reveal an important message: the U.S. government may view stablecoins as a tool for debt resolution. Analysts predict that by 2028, the global market value of stablecoins could rise to $2 trillion, which means there will be a giant buyer specifically purchasing short-term U.S. Treasury bonds. Currently, the two major stablecoin issuers hold $166 billion in U.S. Treasury bonds and are expected to become the third largest holders of U.S. Treasury bonds after the Federal Reserve and foreign central banks in the coming years.

This development trend may lower the borrowing costs for the U.S. government while further consolidating the dollar's status as a reserve currency through stablecoin channels. Although the bill still needs to be reviewed by the House of Representatives and signed by the President before it can be passed, the market generally expects its implementation to be a foregone conclusion.

For investors, the passage of the stablecoin bill may bring the following impacts:

1. The valuation of stablecoin issuers may show significant premiums.
2. The rapid growth of the stablecoin market may create opportunities for related service providers.
3. The application prospects of stablecoins in segmented scenarios such as cross-border payments are broad.
4. Technology service providers (such as custody, compliance technology, etc.) may experience stable growth.

In the secondary market, besides stablecoin issuers, Crypto Assets trading platforms, payment companies, and fintech enterprises may also benefit. Additionally, as the scale of stablecoins grows, lending protocols and yield layer projects in the decentralized finance (DeFi) space may also gain developmental opportunities.

Overall, the rapid development of the stablecoin market is bringing new investment opportunities and innovative space to the Crypto Assets industry. However, investors still need to carefully assess the risks and potential of each project to make informed investment decisions.