Stablecoin Track: From Wild Growth to Regulated Innovation

The stablecoin market is undergoing a transformation. The previous chaotic development is gradually giving way to a more standardized operational model. This shift is primarily driven by three factors: the clarification of the regulatory environment, the compliance of leading companies, and the change in the direction of market innovation.

Globally, from Europe's MiCA to the United States' GENIUS Act, the regulatory framework is becoming increasingly clear, delineating a definite direction for the industry's development. Against this backdrop, a well-known stablecoin company recently went public, with its stock price soaring nearly 170% on the first day. This not only signifies that the stablecoin industry is gradually moving towards the mainstream but also provides important valuation references for traditional capital entering the market.

The future development of stablecoins will no longer be limited to simple dollar peg, but may be driven by three major trends: innovation in stablecoin DeFi protocols, the popularization of payment tools, and deep integration with real-world assets (RWA).

Three Major Use Cases of Stablecoins

payment field

Traditional cross-border payment systems are inefficient, costly, and opaque, making it difficult to meet the demands of the digital age. In contrast, stablecoins are gradually replacing traditional payment methods due to their nearly zero cost, 24/7 availability, and programmable features. Several mainstream payment and financial network companies have begun integrating stablecoins, validating their commercial potential. Stablecoins are rapidly evolving from a pricing unit in cryptocurrency exchanges to a global payment and settlement tool.

DeFi application

Mainstream stablecoins have significant capital efficiency issues. The stablecoins held by users do not generate interest, while the issuers reap all the benefits by investing the reserve assets. To address this issue, a new type of yield-bearing stablecoin has emerged. This type of stablecoin directly embeds yield mechanisms such as U.S. Treasury bonds and DeFi lending into the token design, allowing holders to automatically earn returns.

RWA integration

Tokenization of real-world assets is seen as a core driving force propelling DeFi into the next trillion-dollar market. The essence lies in bringing assets with stable cash flows from the real world (especially U.S. Treasury bonds) onto the blockchain, providing DeFi with sustainable, low-risk actual returns, and attracting institutional-level capital participation. RWA injects real value and scale into stablecoins, opening up possibilities for access to broader markets.

Top Ten Potential Stablecoin Projects

1. Plasma: A high-performance blockchain designed for stablecoins, addressing issues such as high transaction fees and transaction failures when processing stablecoins on traditional chains. It supports payment of transaction fees with mainstream crypto assets and offers zero transaction fees for USDT transfers.

2. Noble: USDN, which is based on a special architecture and collateralized by short-term US Treasury bonds, is expected to have an annualized yield of approximately 4.31%. It supports cross-chain transfers and is suitable for multi-chain development environments.

3. OpenEden: An institution that provides on-chain US Treasury bond yield products. It issues TBILL tokens (backed by short-term US Treasuries and USD) as well as yield-generating stablecoins USDO and cUSDO.

4. Cap: Issue cUSD (digital dollar backed by various blue-chip stablecoins) and stcUSD (interest-bearing stablecoin after cUSD staking). Utilize a decentralized operator network to generate yields.

5. Coinshift: An on-chain financial management platform for institutions and teams. The core assets include the yield-bearing stablecoin csUSDL and the csUSDC generated by collateralized USDC.

6. AUSD: A stablecoin fully backed by cash, US Treasury bonds, and repurchase agreements, following the ERC-20 standard, with characteristics such as free trading and open scalability.

7. Perena: A stablecoin infrastructure protocol built on Solana, issuing yield-bearing stablecoin USD*. Supports the minting of various blue-chip stablecoins and automatic compound interest pool fees.

8. Level: Issued lvlUSD fully backed by USDC and USDT, earning low-risk returns by deploying to quality lending protocols. Users can stake lvlUSD to obtain slvlUSD.

9. Falcon: Provides two minting mechanisms, Classic Mint and Innovative Mint. Users can mint USDf using stablecoins or over-collateralized non-stable assets.

10. Yala: A native liquidity protocol for Bitcoin that allows users to mint over-collateralized stablecoin YU by staking BTC. It employs multiple collateralization ratios to ensure system stability.

The competitive dimensions of the stablecoin market have fundamentally changed. From Bitcoin sidechains designed specifically for stablecoins to yield-bearing stablecoins, these innovative projects may define the development direction of stablecoins in the future, shaping the next decade of the industry.