After a Summer of Stablecoins, What’s Next?

Bullish:

• $STABLES - Stablecoins have significant potential for growth, particularly as dollar savings products outside the US, with USDC currently dominating the US market. Bank-issued stablecoins may also gain traction due to potential cost savings for banks.

  • “The three most interesting uses of stablecoins in real life are a, dollar savings products outside of The US. Many people believe that is the single largest ultimate use case of stablecoins.”

    Brian·1:15

  • “So right now you really, in this country, only have one at scale, which is USDC. As soon as you have mass market adoption of this, the monopoly will go away, and that will be good.”

    Brian·5:52

  • “What these banks are looking to do is to a lower their funding costs. And if they have people holding stable coins, there's reasons to think that that can be cheaper than having to hold an actual bank deposit.”

    Brian·8:19
• $TREASURIES - The Genius Act could significantly increase demand for US Treasuries through increased stablecoin adoption, potentially benefiting the Treasury market.

  • “I think that's one of the best things about the genius act is it will unleash demand for the dollar at levels that were never previously possible.”

    Brian·20:03

Bearish:

• $STABLES - The proliferation of stablecoins could lead to interoperability issues and price discrepancies, potentially causing instability in the market.

  • “I do worry about a proliferation of currencies and quasi currencies that may not be interoperable and interchangeable, and that may end up trading at different prices.”

    Barry·9:45