Summary
Winners:
- Card Networks (Mostly Insulated): Their core business as ubiquitous real-time messaging networks for authorization and value-added services is largely unaffected. They are the top on=ramp (Visa Direct) and the top off-ramp (linked card). Networks will expand services to support issuer demand for stablecoin settlement and services. Within OECD 20 markets, there is no merchant demand for stablecoin in eCommerce.
- Emerging Markets: Stablecoins provide crucial financial access, inflation hedging, and efficient remittances where traditional banking is broken or local currencies are unstable, especially in Africa.
- Edge and Non-Card UCs. Low value payments, remittances, …
- Corporate Treasury and Treasury Platforms: Fortune 100 enterprises gain significant efficiencies in cash management through real-time liquidity, reduced costs, and enhanced transparency.
- Dollarization – US Treasury: The growth of USD-pegged stablecoins, driven by regulations like the Genius Act, creates substantial demand for US Treasuries, reinforcing dollar dominance. Tether is already a top buyer.
- Existing Banks: Despite some fee pressure, banks are adapting by integrating stablecoins into their services, leveraging their customer relationships and regulatory expertise to remain central players.
- Fintech Enablers (Stripe, Shopify): These platforms expand their global reach by making stablecoin acceptance and payouts easier for merchants, particularly in cross-border commerce.
- KYC/AML Service Providers: Increased regulatory clarity and stablecoin adoption drive demand for robust identity verification and anti-money laundering services.
- Wallets/Consumer Champion? PayPal? Enabling wallets in non-carded markets and a new model in eCom and POS (this is Stripe Privy).