Scene is King: The Reconstruction of the Stablecoin Competitive Landscape and the Shift of Value Focus

With the successful listing of Circle on the NASDAQ, the stablecoin market is also undergoing a structural reshaping. When the market focuses on Circle's $5 billion market capitalization and its stablecoin business model, a deeper shift is taking place: the value creation center of stablecoins is migrating from a simple "issuance" link to "creating, empowering, and deeply cultivating application scenarios". This is not a simple adjustment of business strategy, but a fundamental reconstruction of the value logic of the entire industry. Through an in-depth analysis of the drivers, market landscape, and development path of this shift, we will see that the core of competition in the future of stablecoins is not "who can issue more coins", but "who can create and control more valuable application scenarios".

1. Shift of Value Focus: From Issuance Hegemony to Scenario Competition

When we analyze the development trajectory of the stablecoin industry, a clear pattern emerges: this field is shifting from "issuance-centric" to "scenario-centric." This transformation is not coincidental, but rather the result of five structural forces working together.

The squeeze effect in the issuance phase. Circle's prospectus reveals a key reality: even as the second largest issuer in the market, it must pay 50% of its net interest income (NII) to Coinbase as a distribution subsidy. This costly distribution model exposes the substantial compression of profit margins in the issuance phase. As excess profits diminish, market participants are forced to explore other segments of the value chain, particularly at the application scenario level.

The network effects in the issuance phase have become solidified. As a value medium, the utility of stablecoins largely depends on their acceptance - the more people use a certain stablecoin, the more valuable it becomes. This typical network effect has firmly established USDT with a 76% market share, while USDC struggles to maintain a 16% position, with all other competitors sharing the remaining 8%. This market structure has become highly entrenched, making it difficult for new entrants to disrupt the existing landscape merely by issuing new stablecoins.

A fundamental shift in regulatory orientation. The global regulatory framework for stablecoins is shifting from "risk prevention" to "innovation and application". The GENIUS Act in the United States clearly distinguishes between "payment stablecoins" and other types of stablecoins, and designs a specific compliance path for the former; The Stablecoin Issuers Bill, which was officially passed and implemented in Hong Kong on May 21, 2024, not only regulates the issuance activities, but also provides a clear legal framework for innovative applications based on stablecoins. The Monetary Authority of Singapore (MAS) (MAS) further divides stablecoins into "single-currency stablecoins" (SCS) other types, and designs differentiated regulatory measures for different scenarios. Together, these regulatory trends point in one direction: the value of stablecoins will increasingly depend on their performance in real-world use cases, rather than simply the size of their issuance.

The qualitative change of user demand. A sign of the market's increasing maturity is the shift in user demand from simply holding stablecoins to using stablecoins to solve specific problems. Early users may have been satisfied with merely holding the "digital version of the dollar", but users in a mature market expect to see practical applications that go beyond speculation. This shift in demand forces market participants to redirect their focus from "minting more tokens" to "creating more use cases".

Considerations for the Sustainability of Business Models. As competition in the stablecoin market intensifies, business models that solely rely on seigniorage and issuance scale face long-term sustainability challenges. Competition in the issuance phase will lead to increased bidding for reserve fund yields, squeezing profit margins. In contrast, the development of application scenarios can bring a more diversified revenue structure, including transaction fees, value-added service fees, and financial product revenue sharing, providing stablecoin ecosystem participants with a more sustainable business model.

These five forces are driving the stablecoin industry from "issuance wars" to "scenario competition". Looking at the history of industry development, we can clearly identify three stages of development:

• Proof of Concept Phase (2014-2018)

Stablecoins as a concept have been accepted by the market, primarily to meet the liquidity needs of the cryptocurrency trading market.

• Trading Medium Period (2018-2023)

The status of stablecoins in trading scenarios has been solidified, with a surge in issuance.

• Practical Value Period (2024-)

The market focus has shifted from issuance scale to the development of actual application scenarios and value creation.

We are at the beginning of the third phase, where the core competition will revolve around "who can create more valuable application scenarios." For market participants, understanding this shift is crucial, as it will redefine the standards of success and the model of value distribution.

2. Scene cultivation: The value gold mine of stablecoin applications

To truly understand the deeper logic of "scenarios are king," we need to penetrate the surface-level technical discussions and analyze the specific mechanisms through which stablecoins create value in different application scenarios. This analysis cannot be limited to simple expressions of "increasing efficiency" and "reducing costs," but must dissect the inherent complexities, existing pain points, and the transformative potential of stablecoin technology in each scenario.

1. B2B Cross-Border Payments and Trade Finance: Beyond Simple "Fund Transfer"

The issues with B2B cross-border payments are far more complex than they appear on the surface. Traditional narratives often focus on the speed and cost of payments, but the real pain points lie in the fragmentation and uncertainty of the entire cross-border payment and trade finance ecosystem.

When an Asian company makes a payment to a European supplier, the challenges it faces include:

• Exchange Rate Risk Management

: During the lag period from payment decision to fund arrival, exchange rate fluctuations may erode 1-3% of value.

• Liquidity Segmentation

The capital pools of enterprises in different markets are isolated from each other and cannot be effectively integrated.

• Settlement Time Uncertainty

The arrival time of traditional cross-border payments is highly variable, causing difficulties in supply chain management and cash flow planning.

• Payment Compliance Complexity

Cross-border payments involve multiple regulatory frameworks, with high compliance costs and significant risks.

• Disconnection between finance and payments

Lack of seamless integration in payment and trade finance (such as letters of credit, factoring, and supply chain financing)

The value of stablecoins in this scenario lies not only in speeding up the transfer of funds but also in creating a comprehensive value system through smart contracts and blockchain technology:

1. Programmable Payment Conditions

Payments can be automatically linked with trade events (such as shipment confirmation, quality inspection pass), achieving programmatic control over the trade process. 2. Real-time Forex Processing

Minimize exchange rate fluctuation risks through intelligent routing and real-time pricing of multi-currency stablecoin pools. 3. Liquidity Integration

Cross-market and cross-coin liquidity can be managed uniformly on the same infrastructure, significantly improving capital utilization efficiency. 4. Programmatic Trade Finance

Traditional trade finance instruments such as letters of credit and accounts receivable financing can be converted into smart contracts on the blockchain, enabling automatic execution and risk management.

This comprehensive value enhancement far exceeds simple efficiency improvements; it actually reconstructs the operational model of B2B cross-border payments and trade finance. It is noteworthy that achieving this vision requires addressing many practical challenges, including legal framework adaptation (the legal validity of smart contracts in different jurisdictions), legacy system integration (interfacing with enterprise ERPs and core banking systems), and cross-chain interoperability (value transfer between different blockchain networks).

2. Real-World Asset Tokenization (RWA): Creating a New Value Internet

Tokenization of physical assets is another transformative application scenario for stablecoins, but its complexity and challenges are often underestimated.

In the traditional financial system, physical assets (such as real estate, commodities, and private equity) exhibit a significant liquidity discount, which arises from multiple factors such as high transaction costs, limited market participants, and low efficiency in the value discovery mechanism. The tokenization of physical assets promises to reduce this discount through blockchain technology, but to truly realize this promise, a complete ecosystem is required, and stablecoins are the key infrastructure of this ecosystem.

Stablecoins play three key roles in the RWA ecosystem:

1. Value Bridge

Connecting on-chain tokenized assets with fiat currencies in the traditional financial system. 2. Transaction Medium

Provide liquidity and counterparties for tokenized assets 3. Revenue Distribution Channel

An automated distribution mechanism for income generated by assets (such as real estate rental income, bond coupons).

Taking the tokenization of real estate as an example, the deep integration of stablecoins can create a whole new value model: investors can purchase tokenized real estate shares using stablecoins, rental income can be distributed to token holders in real-time in the form of stablecoins, and tokens can be used as collateral to obtain liquidity on stablecoin lending platforms, all of which can be automated through smart contracts without the need for traditional intermediaries.

However, the realization of this scenario faces complex challenges:

• Legal connection between on-chain and off-chain assets

How to ensure the legal relevance and enforcement mechanisms of on-chain tokens and off-chain assets.

• Trust Issues of Value Input

How to reliably input off-chain asset information into on-chain systems (oracle problem)

• Complexity of Regulatory Compliance

Tokenized assets may be subject to multiple regulatory frameworks, including securities laws, commodities laws, and payment laws.

In this scenario, stablecoin issuers that focus solely on maintaining the stability of the coin's value, without participating in the construction of a broader RWA ecosystem, will find it difficult to capture the value of the scene. In contrast, those participants who can provide integrated solutions for stablecoin payments, asset tokenization, transaction matching, and compliance management will dominate this field.

3. Cross-ecosystem Connector: The Bridge Between DeFi and Traditional Finance

There are two parallel developing ecosystems in the current financial system: decentralized finance (DeFi) and traditional finance (TradFi). Each of these ecosystems has its unique advantages: DeFi offers permissionless access, programmability, and extremely high capital efficiency; TradFi, on the other hand, has regulatory certainty, deep liquidity, and a broad user base. In the long run, the maximization of value for these two systems will be achieved through connection rather than replacement.

Stablecoins are becoming a key link between these two ecosystems, as they possess attributes from both worlds: they are tokens on the blockchain that can interact seamlessly with smart contracts; and they represent the value of fiat currency, making them compatible with traditional financial systems. This makes them a natural medium for the flow of value between the two systems.

In this connector role, specific application scenarios supported by stablecoins include:

1. Dual Ecosystem Strategy for Corporate Financial Asset Management

Enterprises can manage their daily operational funds within traditional banking systems while deploying some liquidity through stablecoins into DeFi protocols to earn returns. 2. Cross-ecological Optimization Path of Funds

Build intelligent systems to automatically optimize the allocation of funds between TradFi and DeFi based on the market conditions of different ecosystems. 3. Compliant packaged DeFi services

Access DeFi services in a compliant manner through stablecoin service providers with regulatory licenses, meeting the access requirements of institutional investors.

In conversations with a number of Asia-Pacific corporate treasury departments, Aiying found that this "day and night money management" model is being adopted by more and more enterprises – even traditional enterprises are beginning to realize that deploying some of their liquidity into the DeFi space through stablecoins can generate additional income while maintaining the necessary risk controls.

However, building such scenarios requires overcoming several key challenges: the complexity of regulatory compliance (especially for regulated financial institutions), risk isolation mechanisms (to ensure that DeFi risks do not spread to core business), and the simplification of user experience (to make it easy for non-crypto professionals to use). Successful solutions need to provide innovation in all three dimensions of technology, regulation, and user experience.

Through an in-depth analysis of these three core scenarios, we can clearly see that the value creation of stablecoins has far surpassed the simple concept of "digital dollars" and is developing towards the construction of a complex, multi-dimensional application ecosystem. In this direction, mere issuance capability is no longer the winning factor; instead, it requires a deep understanding of specific scenario needs, building an integrated application ecosystem involving all parties, and providing a comprehensive capability for a frictionless user experience.

3. Regulatory Landscape Differentiation: Forward Layouts of Hong Kong and Singapore

The regulatory environment both shapes and reflects the direction of market evolution. By analyzing the stablecoin regulatory strategies of the two major financial centers in the Asia-Pacific region—Hong Kong and Singapore—we can more clearly grasp the trend of stablecoin value shifting towards scenario applications.

Hong Kong: The Evolution from Sandbox to Mature Framework

On May 21, 2024, the Hong Kong Legislative Council officially passed the "Stablecoin Issuers Ordinance Draft", marking the transition of Hong Kong's stablecoin regulation from the exploratory phase to a mature framework phase. The core features of this ordinance include:

1. Layered Regulatory Framework

Differentiated regulatory requirements are designed for different types of stablecoins, giving regulatory priority to payment-oriented single fiat-backed stablecoins. 2. Full Chain Risk Control

Not only focusing on the issuance phase, but also covering the entire ecosystem chain including custody, trading, and payment processing. 3. Scenario-based Regulatory Incentives

Provide compliance convenience and policy support for application scenarios serving the real economy.

From the policy documents and industry communications of the Hong Kong Monetary Authority, we have noticed that Hong Kong's strategic focus has clearly shifted from "attracting stablecoin issuers" to "nurturing an innovative application ecosystem based on stablecoins." This shift is reflected in specific policies, such as providing regulatory clarity for corporate clients using stablecoins for cross-border trade settlement, offering guidance for financial institutions to conduct stablecoin custody and exchange services, and supporting the interconnection of stablecoin payments with traditional payment systems.

The strategy positioning behind Hong Kong's approach has its unique strategic considerations: as a gateway connecting mainland China with international markets, Hong Kong hopes to strengthen its strategic position in global offshore RMB business, Greater Bay Area cross-border financial services, and Asian international asset management centers through the construction of a stablecoin application ecosystem.

Singapore: Refined Risk-Adaptation Framework

Compared to Hong Kong, the Monetary Authority of Singapore (MAS) has adopted a more refined "risk-based" regulatory strategy. Within its framework, stablecoins are classified into several categories, each subject to different regulatory standards:

1. Single Currency Stablecoin ( SCS )

A stablecoin pegged to a single fiat currency, primarily used for payment purposes, subject to the strictest reserve requirements and risk control standards. 2. Non-Single Currency Stablecoin

including stablecoins that are pegged to a basket of currencies or other assets, subject to differentiated regulatory requirements 3. Scenario Adaptive Regulation

Adjust regulatory intensity according to the usage scenarios of stablecoins (such as retail payments, wholesale payments, trading mediums, etc.)

It is noteworthy that Singapore's regulatory strategy places particular emphasis on the application value of stablecoins in cross-border payments, trade finance, and capital markets. The MAS has launched several pilot projects for stablecoin applications, including Ubin+ (exploring cross-border stablecoin settlement), Guardian (tokenization and trading of sustainable financial assets), and Project Orchid (retail stablecoin payments). These projects all point in a common direction: the value of stablecoins lies not in their issuance itself, but in the application scenarios they support.

Singapore's direction aligns with its positioning as an international trade hub and financial center, strengthening its strategic role in connecting global trade and financial flows by promoting the application of stablecoins in real commercial scenarios.

Commonalities and Insights of Regulatory Trends

By comparing the regulatory strategies of Hong Kong and Singapore, we can identify several key common trends:

1. Regulatory Shift from "Risk Prevention" to "Innovation Promotion"

The regulatory approach in both regions has shifted from a cautious attitude in the early stages to a more proactive direction in guiding innovation. 2. Pay attention to the value of application scenarios

Both view stablecoins as financial infrastructure rather than merely financial products, and focus on their value creation in practical application scenarios. 3. The biased allocation of regulatory resources

To allocate regulatory resources to stablecoin applications that serve the real economy and solve practical problems.

These regulatory trends further validate my core viewpoint: the value of the stablecoin ecosystem is shifting from the issuance phase to application scenarios. Regulatory agencies have recognized this evolutionary direction and are guiding the market towards this development through policy design.

For market participants, this regulatory landscape means that a competitive strategy focused solely on the issuance stage will face increasing limitations, while those participants who can innovate application scenarios and solve practical problems within the regulatory framework will gain more policy support and market opportunities.

Four, Empowering Scene Innovation in Payment Infrastructure: From Distribution to Value Creation

If we say that scenario applications are the gold mine of the stablecoin ecosystem, then payment infrastructure is the necessary tool to mine these gold mines. As the market shifts from "who issues coins" to "who can create application scenarios," a key question arises: what kind of infrastructure can truly empower rich and diverse application scenarios?

Through in-depth interviews and demand analysis with dozens of corporate clients worldwide, Aiying discovered that the demand for stablecoin payment infrastructure far exceeds the simple "send and receive stablecoin" functionality. What enterprises truly need is a comprehensive solution that can address five core challenges:

The Five Core Challenges of Enterprise-Level Stablecoin Payments

1. Complex multi-coin and multi-channel management

International enterprises typically need to handle 5-10 different fiat currencies and various stablecoins, and they require a unified interface to integrate this complexity rather than establishing independent processes for each currency. 2. Opaque foreign exchange conversion costs

In cross-border transactions, hidden foreign exchange costs can often reach 2-3%, or even higher. Businesses need tools to monitor and optimize these conversion costs in real time. 3. Multi-layered compliance and risk control requirements

Different regions and scales of trading face various compliance requirements, and companies need a solution that can meet strict regulations without overly increasing operational complexity. 4. Integration Barriers with Existing Systems

Any new payment solution must be able to integrate seamlessly with the enterprise's existing ERP, financial management, and accounting systems; otherwise, the adoption costs will be too high. 5. Lack of Programmable Payment Capability

Modern enterprises require not only simple fund transfers, but also advanced features such as conditional payments, multi-level revenue sharing, and event-triggered automatic payments.

Faced with these complex demands, the market is forming three distinctly different infrastructure provision models, each representing different strategic positioning and value propositions:

A Deep Comparison of Three Stablecoin Payment Infrastructure Models

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In-depth analysis of these three models leads us to believe that the "neutral platform" model has unique advantages in empowering diverse application scenarios, particularly in three key areas:

Multi-ecological integration capability: No single stablecoin or payment channel can meet the demands of all scenarios. The neutral platform provides maximum flexibility for enterprises by integrating multiple stablecoins, various payment channels, and different fiat currency channels. This enables enterprises to choose the optimal combination according to the needs of different scenarios, without being restricted by a single ecosystem.

Cross-scenario intelligent optimization capability: The real value lies not in simply providing multiple options, but in being able to intelligently recommend the optimal path for a specific transaction. For example, a payment from Singapore to Brazil may require different optimal routes under different conditions: using USDC through a particular exchange in Hour A, or more appropriately using USDT through another channel in Hour B, or even falling back to a traditional banking channel in certain circumstances. This dynamic optimization capability is the core of the value of the scene.

Compliance Empowerment Capability: As the application of stablecoins shifts from mere transactions to broader commercial scenarios, the complexity of compliance requirements has significantly increased. Neutral platforms reduce the cost and complexity of enterprises building their own compliance infrastructure by integrating various compliance tools and processes (such as KYB, transaction monitoring, suspicious activity reporting, etc.), enabling them to innovate application scenarios under strict compliance.

In the long term, we anticipate that the future stablecoin payment infrastructure will further specialize, forming a clear layered architecture: stablecoin issuers will focus on maintaining coin value stability and reserve management; neutral payment infrastructure providers will be responsible for connecting different stablecoins, optimizing payment paths, and ensuring compliance; vertical industry solutions will concentrate on deep applications in specific scenarios. This division of specialization will significantly enhance the efficiency and innovative capacity of the entire ecosystem.

Five, Future Outlook: The Evolution of the Integration of Payment and Finance

Standing in the present and looking forward to the future evolution path of stablecoin application scenarios, we can identify a clear development trajectory: from a simple payment tool to a comprehensive financial infrastructure. This evolution process will unfold in three stages, each representing a qualitative change in value creation models.

The three-stage evolution of stablecoin application scenarios

Phase One: Payment Optimization (2023-2025)

Currently, we are in the first phase of stablecoin applications, where the core value proposition is to solve fundamental payment issues, especially in cross-border payment scenarios. The characteristics of this phase include:

• Increase payment speed (shorten from 3-5 days to real-time or near real-time)
• Significantly reduce costs (from an average of 7% to 0.1%-1%)
• Enhance payment transparency (real-time tracking of transaction status)
• Optimize foreign exchange processing (reduce losses caused by exchange rate fluctuations)

At this stage, stablecoins primarily serve as a medium for fund transfer, replacing or supplementing traditional payment channels. The competitive focus for market participants is on who can provide a faster, cheaper, and more reliable payment experience.

Phase Two: Integration of Financial Services (2025-2027)

As the basic payment issues are resolved, the application of stablecoins will enter its second stage, characterized by the deep integration of financial services and payments. This stage will see:

• Seamless integration of payment and trade financing (e.g., automatic provision of accounts receivable financing based on payment history)
• Embedding of liquidity management tools (such as smart fund pool management, optimizing idle fund returns)
• Programmatic collaboration in multi-party finance (such as the collaborative automation among buyers, sellers, and financial institutions in supply chain finance)
• Real-time asset-liability management (the corporate treasury function shifts from lagging reports to real-time management)

At this stage, stablecoins are no longer just payment tools, but have become the infrastructure for building new types of financial services. The focus of competition has shifted from simple payment efficiency to who can provide more comprehensive and intelligent financial solutions.

Stage Three: Financial Programming (2027 and Beyond)

Ultimately, the application of stablecoins will enter the third phase: financial programmability. In this phase, enterprises will be able to customize complex financial processes according to business logic through APIs and smart contracts. Specific manifestations include:

• Business rules directly converted into financial logic (e.g., sales conditions automatically converted into payment conditions)
• Dynamic optimization of financial resources (funds automatically flow between different channels and tools based on real-time conditions)
• Automation of Inter-Organizational Financial Collaboration (Programmatic Coordination of Financial Systems of Supply Chain Upstream and Downstream Enterprises)
• Democratization of financial innovation (enterprises can build exclusive financial tools and processes at low cost)

At this stage, stablecoins will become true "programmable currencies," and financial operations will no longer be independent functions but deeply embedded in the core business processes of enterprises. The focus of competition will be on who can provide the most powerful and flexible financial programming capabilities.

6. The Formation of a New Division of Labor System

This three-stage evolution will promote the formation of a more specialized division of labor in the stablecoin ecosystem, mainly reflected in three aspects:

Infrastructure Layer: Stablecoin issuers focus on maintaining coin value stability, reserve management, and regulatory compliance, providing a reliable value foundation for the entire ecosystem. Participants at this layer will face pressures of standardization and commoditization, with limited differentiation space.

Application Platform Layer: Neutral payment infrastructure providers are responsible for connecting different stablecoins, optimizing payment paths, ensuring compliance, and providing core application functionalities. Participants at this layer will differentiate themselves through technical capabilities, user experience, and ecosystem integration capabilities.

Scenario Solution Layer: Vertical industry solution providers focus on deep optimization of specific scenarios, offering highly customized solutions. Participants in this layer will differentiate themselves through a profound understanding of specific industry pain points and targeted solutions.

With the deepening of this professional division of labor, we will see changes in the value distribution ratio at each level: the profit margin of the infrastructure layer will gradually be compressed, while the application platform layer and scenario solution layer will gain a larger share of value. This trend is highly similar to the development process of the Internet—from early infrastructure competition to platform competition, and then to application scenario competition.

Conclusion: Whoever can create application scenarios will hold the future of stablecoins.

The stablecoin market is undergoing a profound value reconstruction: shifting from "who issues coins" to "who can create and amplify real-world application scenarios." This is not a simple adjustment of business models, but a redefinition of the entire industry's value creation methods.

Looking back at the development history of payment technology, we can observe a recurring pattern: each payment revolution goes through a process from infrastructure construction, to product standardization, and finally to the explosion of scene value. Credit cards took decades to evolve from a simple payment tool to the infrastructure for building a consumer finance ecosystem; mobile payments also underwent a long evolution from a simple cash substitute to a deep integration with various life scenarios. Stablecoins are experiencing the same developmental trajectory, and we are currently at a critical turning point from standardization to the explosion of scene value.

In this new phase, the key to success is no longer who has the largest issuance or the strongest capital strength, but who can deeply understand and solve practical problems in specific scenarios. Specifically, market participants need to possess three core capabilities:

1. Scenario Insight Ability

Able to identify and understand the deep pain points and needs in specific areas. 2. Integration and Coordination Ability

Able to connect and integrate multiple resources to build a complete solution ecosystem. 3. User Empowerment Capability

By enabling appropriate abstraction and simplification, complex technologies can become easier to adopt.

For participants in the stablecoin ecosystem, this value migration signifies a shift in strategic focus: from simply pursuing scale and speed to deeply cultivating vertical scenarios and user value. Those who can establish professional division of labor, create an open ecosystem, and focus on scenario innovation will stand out in this transformation that reshapes global payment infrastructure.