A New Era for the Stablecoin Sector: Regulation, Compliance, and Innovation

The stablecoin sector is entering a new stage of development, characterized by an increasingly clear regulatory framework, leading companies seeking compliance, and a shift in the direction of market innovation.

Globally, from Europe's MiCA to the United States' GENIUS Act, the regulatory environment is gradually becoming clearer, providing more explicit guidance for industry development. Against this backdrop, a well-known stablecoin company recently went public, with its stock price soaring nearly 170% on the first day, marking not only a step towards the mainstreaming of the stablecoin industry but also providing important references for traditional capital to evaluate the market value of stablecoins.

The future development of stablecoins is likely to revolve around three core trends: the innovation of stablecoin DeFi protocols, the popularization of stablecoin payment tools, and the deep integration with real-world assets ( RWA ).

Three Major Use Cases of Stablecoins

Payment Field

Traditional cross-border payment systems are inefficient, costly, and opaque, making it difficult to meet the demands of the digital age. Stablecoins, with their low costs, 24/7 availability, and programmability, are disrupting traditional payment systems. Several major payment companies and financial networks have begun to integrate stablecoins, validating their immense commercial potential. Stablecoins are gradually evolving from a pricing tool on cryptocurrency exchanges to a global medium for payment and settlement.

DeFi field

Mainstream stablecoins have significant capital efficiency issues, as users holding stablecoins do not earn any returns, while issuers obtain all interest income through investing reserve assets. New yield-bearing stablecoins integrate various yield mechanisms directly into the token design, allowing holders to automatically earn returns and improving the efficiency of capital utilization.

RWA field

Tokenization of real-world assets is seen as a key factor in driving DeFi towards the next trillion-dollar scale. At its core, it involves bringing assets with stable cash flows from the real world (especially U.S. Treasury bonds) onto the blockchain, providing sustainable, low-risk actual yields for DeFi and attracting institutional-grade capital to participate. RWA injects substantial value and scale into stablecoins, promising to open a new chapter for stablecoins towards the trillion-dollar market.

Overview of Ten Potential Stablecoin Projects

1. A high-performance blockchain project specifically designed for stablecoins, dedicated to solving issues such as high transaction fees, transaction failure rates, and functionality gaps when processing stablecoins on traditional chains.

2. A stablecoin project backed by short-term US Treasury bonds, with an expected annual yield of approximately 4.31%, supporting cross-chain transfers and multi-chain development.

3. Institutions providing on-chain US Treasury yield products, issuing tokens backed by short-term US Treasuries and USD, as well as two types of yield-bearing stablecoins.

4. Projects issuing two types of products: one is a digital dollar backed by various blue-chip stablecoins, and the other is an interest-bearing stablecoin that generates returns through a decentralized operator network.

5. An on-chain financial management platform aimed at institutions and teams, integrating payment, accounting, and asset management functions, issuing two core stablecoin assets.

6. A stablecoin fully backed by cash, US Treasury bonds, and repurchase agreements, supporting free trading and Compliance features.

7. Establish a stablecoin infrastructure protocol built on a certain public chain, issuing yield-bearing stablecoins backed by multiple blue-chip stablecoins.

8. A protocol that issues fully collateralized stablecoins and earns low-risk returns by being deployed to blue-chip lending protocols.

9. Provide stablecoin projects with two minting mechanisms, where users can mint stablecoins using stablecoins or over-collateralized non-stable assets.

10. A native liquidity protocol for Bitcoin that allows users to mint over-collateralized stablecoins by staking BTC.

These projects showcase the innovative trends in the stablecoin field, from specialized blockchain designs to yield-bearing stablecoins, all of which may define the future development direction of stablecoins. With the regulatory environment becoming clearer and the market maturing, the stablecoin industry is ushering in new development opportunities.