The Stablecoin Boom: Why Institutions Are Betting on Stablecoin Growth | Round Table
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Kind of to Box earlier point, like, I would expect a ton of new issuers to enter the market. But if those issuers can't get meaningful distribution, whether it's through their own platform, integrations with merchants, point of sale, payment rails, DeFi, I would expect a ton of flops by the new entrants as well. That being said, like, even if you can get a few hundred million in underlying deposits in a stable coin, and you're a TradFi institution with, hundreds of billions in assets under custody already, the free cash flow of that vertical is still gonna be pretty attractive.
Nothing set on Xerox Research is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Boccaccio, Ryan, and our guests may hold positions in the company's funds or projects discussed. Hey,
guys. Welcome back to another episode of Xerox Research. It's been a bit. Some of the folks here from DAS have finally rejoined us here, on the show. And, I'm today, I'm joined by Bacaccio, Luke, and Mark. We got a full research crew today. Wanted to hit them up and get their thoughts and kind of big takeaways from the DaaS event. But before we dive into that, we do have another event coming up, permissionless coming up this year. As you know, the code is always the same, zero x 10, and hopefully, we'll see you there later this year. Anyway, jumping back into today. Let's dive into just real q
have two things. First of all, I wanna say that, everybody should get the permissionless tickets. It's gonna be, like, EF Denver but better because it's not in Denver. The second thing is with regard to the markets, the only thing that I've been doing is farming stuff, and I realized that I'm losing money on farming stuff. So now I've stopped doing that as well. There's, like, no opportunities out there. Baruchain was quite good for some time, and then now it's now it's not as good anymore. And like you said, I feel like people are waiting for tomorrow to see what they're gonna do, how they're
I still view, kind of all risk assets, equities, and crypto as being embarrassed trend right now. That being said, given the several weeks of consolidation and sell pressure we've seen, I think we're we're getting closer to, like, a tactical multi week, multi month bottom. And my expectation for forward returns, looking at, like, q two and q three this year, is quite favorable. Q one, we saw a lot of really attractive stable coin yields. Like, you get 33 fixed on s USD principal tokens. But those opportunities have, really come down a lot to maybe, like, 10 to 13%. And with that, like, the the
Yeah. I definitely agreed. Looking at the markets kinda means I'm looking at Bitcoin as a benchmark. And, you know, q one, we're down 12%, and we were up, like, 50% in q four of last year. So it's not as bad as it seems given, like, last year was, like, a % return for Bitcoin, maybe more, something like that. So and I kind of low key like these kind of environments where a lot of the noise in the data starts to get flushed out. So, like, you know, if you're looking at app revenue on, you know, BlockWorks data dashboard or Rev, like, you can see who's holding relative market share and who's act
I agree with that. I also wanna say two things. First of all, I think a lot of people who listen to the pod, like, if you're a retail, you might be like, oh, no. I'm down. As far as I've heard and spoken to people, most funds are also down, like, liquid I know liquid funds who held it
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