Stablecoin Market: The Rise of a $2 Trillion Blue Ocean

Stablecoins play a crucial role in the Web3 industry. Recently, after the listing of stablecoin issuer Circle, its stock price soared, attracting widespread attention in the market. Behind this phenomenon, the GENIUS stablecoin bill passed by the U.S. Senate has played a key role in driving this momentum.

The main content of the bill includes:

1. Establish a dual-track regulatory system for federal and state oversight.
2. Requirement for a 1:1 reserve ratio, limited to highly liquid safe assets
3. Strengthen information disclosure and independent auditing
4. Establish a licensing system and compliance requirements
5. Strengthen anti-money laundering and sanctions compliance
6. Protecting Consumer Rights

One important intention of the bill is to absorb U.S. Treasury bonds through the stablecoin market. It is predicted that by 2028, the global stablecoin market value could reach $2 trillion, and stablecoin issuers are expected to become the third largest holders of U.S. Treasury bonds, only behind the Federal Reserve and foreign central banks. This will help reduce the borrowing costs for the U.S. government while solidifying the dollar's status as the global reserve currency.

For stablecoin issuers like Circle, although the current valuation is high, the market is optimistic about their long-term development prospects. The stablecoin industry chain includes multiple links such as issuance, channels, application scenarios, and technical support, presenting vast investment opportunities.

Besides Circle, companies like Coinbase will also benefit from the expansion of the stablecoin market. In addition, the growth in stablecoin size is favorable for the development of protocols such as DeFi lending.

Overall, the stablecoin market is entering a rapid development phase, which will give rise to a new batch of "crypto water sellers". As regulatory policies gradually become clearer, this market is expected to achieve leapfrog growth in the coming years.