New Opportunities in the Stablecoin Market: The Crypto Financial Ecosystem Driven by Legislation

Stablecoins have become an indispensable part of the cryptocurrency field. Recently, the stock price of stablecoin issuer Circle soared after going public, attracting widespread attention from the market. Behind this phenomenon is the positive impact brought by the GENIUS stablecoin bill passed by the U.S. Senate.

The core content of the bill includes establishing a dual-track regulatory system, requiring a 1:1 reserve ratio, strengthening information disclosure and auditing, setting up a licensing system, enhancing anti-money laundering compliance, and protecting consumer rights, among other aspects. Among these, the strict limitations on reserve assets may become a powerful tool for the U.S. government to resolve debt.

Analysts predict that by 2028, the global market value of stablecoins may reach 2 trillion dollars. This means that stablecoin issuers could become the third-largest holders of U.S. Treasury securities, after the Federal Reserve and foreign central banks. This trend is expected to lower the borrowing costs for the U.S. government while reinforcing the dollar’s position as the world’s reserve currency.

For investors, although Circle’s current valuation is high, the market seems confident about its future development. This optimistic sentiment stems from the stablecoin being viewed as an important tool for maintaining the dollar’s hegemony and promoting interest rate cuts by the Federal Reserve.

In the stablecoin industry chain, there are many investment opportunities beyond issuers. These include channel distribution of stablecoins, development of application scenarios, and technical support services. For startups, providing stablecoin-related services in niche markets may be an attractive direction, especially in pain point areas such as small cross-border payments.

In the secondary market, in addition to Circle, companies closely related to the stablecoin business such as Coinbase may also benefit. Furthermore, some newly listed stablecoin-related stocks may pique investors’ interest.

For the cryptocurrency ecosystem, the growth of stablecoin scale will provide more liquidity for DeFi platforms, benefiting the development of projects such as lending protocols and yield aggregators. In particular, companies that are committed to bringing U.S. Treasury bonds on-chain may gain a direct competitive advantage.

With the continuous development of the stablecoin market, we have reason to believe that this field will continue to bring new opportunities for investors, while promoting further improvement and innovation in the entire encryption financial ecosystem.