Stablecoin Bill Passed: Investment Opportunities in a $20 Trillion Market

Stablecoins have become an indispensable part of the Web3 industry. Recently, the stock price of stablecoin issuer Circle surged threefold after going public, attracting widespread market attention. Behind this phenomenon, the GENIUS stablecoin bill passed by the U.S. Senate played a key role.

The core content of the bill includes: establishing a dual regulatory system for federal and state levels; requiring stablecoins to have a 1:1 reserve, limited to highly liquid safe assets; issuers must regularly disclose reserve conditions and undergo independent audits; apply for licenses and be subject to bank supervision; comply with anti-money laundering and sanctions compliance requirements; protect consumer rights, etc.

One important purpose of the bill is to provide financing support for the U.S. government. If the bill is officially implemented, it is expected that by 2028, the global stablecoin market value could reach 2 trillion dollars. This means there will be a huge buyer specifically for purchasing short-term U.S. Treasury bonds. Currently, major stablecoin issuers hold 166 billion dollars in U.S. Treasuries and may become the third-largest holder of U.S. Treasuries, after the Federal Reserve and foreign central banks. This trend helps reduce the borrowing costs for the U.S. government and attracts funds to U.S. Treasuries globally, further consolidating the dollar's status as a reserve currency.

Despite Circle's current high valuation, the market is confident about its prospects. This confidence mainly stems from the view that stablecoins are an important tool for maintaining the dominance of the US dollar and enhancing the attractiveness of US Treasury bonds. Against this backdrop, the valuations of leading stocks in the stablecoin industry may continue to rise.

In addition to issuers, the stablecoin industry chain also includes channel distribution, application scenarios, and technical support. For startups, providing stablecoin services in niche scenarios may offer more opportunities, such as small cross-border payments. Although technical support services have lower profit margins, they can provide stable cash flow, making them suitable for defensive entrepreneurs or large companies' internal incubation.

In the secondary market, besides Circle, Coinbase as an important channel provider will also benefit. In addition, some newly listed stablecoin-related companies may be favored by the market. In the cryptocurrency field, the growth of stablecoin scale is beneficial for the development of DeFi lending protocols and yield layer projects, especially those companies that are able to bring U.S. Treasury bonds on-chain may gain direct advantages.

With the rapid development of the stablecoin market, related investment opportunities are continuously emerging. Investors need to closely monitor industry trends to seize potential opportunities in this emerging field.