Web3 Entrepreneurship Interview: Exploring the Current State and Future Opportunities of the Stablecoin Market

Recently, stablecoins have become a hot topic. With Singapore, Hong Kong, and other regions accelerating regulatory legislation for stablecoins, various parties are preparing for compliant stablecoin versions. In this interview, we invite Shawn Pang, co-founder and CEO of AllScale, to share their exploration in the field of stablecoins and their observations on global stablecoin projects.

AllScale's Business Positioning

AllScale is building an operating system to help traditional enterprises and small to medium-sized enterprises use stablecoins, aiming to bridge the "last mile" of enterprise-grade stablecoin payments. They hope to assist businesses in complying, securely, and conveniently completing end-to-end needs such as receiving payments, sales, and payroll through stablecoins.

Shawn stated that the infrastructure of the entire ecosystem is rapidly developing, but the "last mile" of enterprise payments still lacks mature solutions. The AllScale team members mostly come from core enterprises in the payment industry and focus on solving this problem.

Cases of "Seamless" Use of Stablecoins by Enterprises

AllScale positions itself as an "application layer solution provider" and does not involve fund custody or stablecoin issuance. Their core focus is on providing comprehensive application layer development and process integration.

Taking cross-border cooperation as an example, when Singapore or American companies need to collaborate with Web3 developers in Argentina, they often face difficulties in receiving and making payments. AllScale's solution is to develop an invoicing system for small and medium-sized enterprises to manage accounts receivable, allowing customers to easily, safely, and compliantly pay with stablecoin through all channels. Even if the payer is not familiar with stablecoin, they can complete the transaction smoothly.

Global Stablecoin Project Trends

Shawn observed that the US market places great importance on APIs and SaaS. The "first mile" and "last mile" infrastructure of stablecoins was already clear six months ago. The core logic is to package compliance, technology, and risk control, allowing the application layer to reuse them directly.

Many brands in the Asian market are aligning with payment solutions, exploring the issuance of stablecoins, especially with frequent actions from cross-border payment companies. Another trend is that many projects are exploring transformation in terms of "compliance," such as some DeFi projects in the United States beginning to consider centralized solutions with "custody."

Long-term Potential and Opportunities of Payment Stablecoins

Shawn believes that stablecoins are "overvalued in the short term and undervalued in the long term." In the short term, people may overestimate the progress made within a year, but in the long run, its value is underestimated.

For small and medium-sized enterprises, the opportunities mainly lie in the application layer:

1. Native scenario: such as on-chain DeFi, smart contract-driven financial services.
2. Embedded Scenarios: Integrate stablecoin payments into vertical scenarios.
3. Transforming traditional scenarios: such as microloans, trade financing, etc.

SMEs need to focus on "payment + scenarios" rather than just doing payments.

Future Outlook of the Stablecoin Market

Shawn has three expectations for the future of the stablecoin market:

1. Eliminate "stigmatization": Make people aware that crypto is a technological innovation, not just associated with speculation and illicit activities.
2. Traditional financial institutions deeply involved: As stablecoins become an irreversible trend, institutions will shift from "resistance" to "participation."
3. Forming a closed loop: upgrading from the "fiat currency in - stablecoin transfer - fiat currency out" "sandwich model" to a full-scenario use of stablecoin for "salary collection - loans - payments - consumption."

Shawn finally stated that the "bubble" brought by stablecoins may be overestimated in the short term, but the long-term impact is often underestimated. This "bubble" is precisely the key to breaking the path dependence of traditional finance, bringing transformative opportunities to the industry.