Dynamics and Research of Stablecoins

The success of a stablecoin does not rely on rallying a group of alliance members to help with marketing, but rather on whether it has real use cases and real users.

OUSD will not be the last new competitor; Circle needs to respond more actively in terms of products, distribution, and ecosystem collaboration.

The emergence of Open USD has shifted the competition for stablecoins from the market struggle of crypto startups to a battle for infrastructure involving traditional finance, payment networks, technology platforms, and public chain ecosystems.

As an important milestone event in the stablecoin landscape, OUSD is likely to change the existing stablecoin landscape and significantly increase the adoption rate of stablecoins in the global financial system.

It can continue to question the cost-effectiveness of stablecoins in the G10 currency corridor, but it cannot ignore the structural opportunities of stablecoins in emerging markets, corporate finance, and on-chain settlements.

The issuance layer obtains user funds and takes the largest profit margin; the two middle layers rely on traffic, distribution commissions, and underlying infrastructure; the application layer enjoys convenience but has no bargaining power.

Great powers compete for standards, while small countries build barriers.

The report believes that stablecoins will strengthen the dominance of the US dollar in the short term, posing risks to the monetary sovereignty of emerging markets and developing economies, while the long-term trajectory will depend on their adoption models, regulatory responses, and the synergy of the digital financial ecosystem.

Why do businesses still need stablecoins? What problems do stablecoins actually solve?

On May 20, Coinbase announced the launch of USDF for Flipcash through its Custom Stablecoins platform.