Who is really making money behind this wave of stablecoin frenzy?

With the listing of the compliance stablecoin leader Circle, a benchmark effect has been brought about, and the domestic market has also begun to follow stablecoins.

Various stablecoin payment conferences are emerging one after another, companies are organizing learning, and of course, the crypto community is actively discussing, with scholars debating.

Behind the hustle and bustle, who is actually making money now?

In fact, based on the overall process, the development of stablecoins can be divided into three stages, and each of these stages has different roles that can earn money.

Phase One, Apply for License.

Compliance first, currently everyone is applying for licenses in Hong Kong.

The biggest problem with Hong Kong's regulation is that it is too strict and demands a lot, and many companies do not know how they can meet the regulatory requirements.

At this time, law firms stepped in to provide legal consulting services to companies applying for licenses, assisting them in submitting materials and communicating with regulators.

So at this stage, the law firm has made money first.

Phase Two, Build Technology.

Compliance and technology can run in parallel. Many companies are applying for licenses while building their technical systems, so once the license is approved, they can immediately launch their own stablecoin and seize the opportunity.

If we wait until the license is obtained before launching the project, we will miss the window of opportunity and it will be too late.

Making stablecoin payments is quite complicated, requiring Compliance services, asset management services, token issuance services, liquidity management services, security services, and so on.

Specifically includes KYB, KYT, AML, order management, address management, clearing and settlement, deposits and withdrawals, contract auditing, on-chain security, etc.

However, traditional Web2 companies actually lack relevant experience and talent accumulation in blockchain development, so they need to collaborate with Web3 technology service companies.

Therefore, at this stage, many Crypto technology service providers have also begun to attract clients and directly generate income.

Phase three, channel promotion.

If you have a license and have done the technology well, you can start the business directly.

However, currently, the vast majority of companies are still in the first and second stages, with the third stage at most in the negotiation phase.

However, once the business is launched, it will be a situation of the "hundred coin war."

For stablecoins, liquidity is key.

Various stablecoins need to find their business scenarios to expand their usage scale.

Therefore, channel promotion is very important, and it is necessary to find channels with volume for cooperation.

A typical example is Circle; USDC was able to rise rapidly mainly due to the liquidity and brand endorsement provided by the strong support of Coinbase.

This is a clear development path. For Hong Kong stablecoin players, they also need to utilize various channels to seize the market.

So, during this phase of the hundred coin battle, the most profitable naturally includes various channels, such as exchanges, e-commerce platforms, cross-border trade companies, and so on.

After going through the above three stages, only the stablecoin that emerges can truly make a profit.

In the end, there will be a stablecoin that emerges, becoming the leader in the Hong Kong region or the Chinese-speaking area, and will squeeze the space of other competitors, gaining the majority of market share through the siphon effect.

After securing a solid market share, the next step is naturally to increase one's profits, this is the time when stablecoin issuers make money.

Referencing the domestic battles of ride-hailing, shared bicycles, and food delivery, none of them deviates from this path.

At the beginning, it was a chaotic battle, and the players who emerged in the end would take all the winnings. After a subsidy war, they need to recuperate, reduce subsidies, and increase prices in order to make a profit.

At this time, the profits are also quite terrifying, as stablecoin issuers themselves rely on a large volume of assets to be profitable.

Besides various project parties, for ordinary users, a more direct benefit is that when new stablecoin forces seize the market and liquidity through subsidies, we retail investors can also profit from it.

In conclusion, the surge of stablecoins can be described as "the bigger the water, the bigger the fish", and one must seize their own piece of the cake.