Financial Times: Banks and financial institutions join the "stablecoin gold rush"
According to ChainCatcher, the Financial Times reports that several large banks and fintech companies around the world are racing to launch their own stablecoins to capture a share of the cross-border payment market, which is expected to be reshaped by cryptocurrencies. Last month, Bank of America expressed an open attitude towards issuing its own stablecoin, joining payment service providers such as Standard Chartered, PayPal, Revolut, and Stripe that have already entered the field.Simon Taylor, co-founder of fintech consultancy 11:FS, likened this phenomenon to FOMO (fear of missing out): "It's about people selling shovels in the stablecoin gold rush. Another factor driving it is the real trading volume; founders want to get a piece of the pie because they know stablecoin regulation is coming, so all these factors come together." Martin Mignot, a partner at Index Ventures and supporter of Bridge, stated that stablecoins are "attractive" in markets lacking "good infrastructure or liquidity and with significant currency risk," but the use cases in Western markets are "not so obvious."Analysts warn that as users begin to scrutinize the quality of issuing companies, the market is unlikely to sustain the existence of dozens of stablecoins. Taylor pointed out that stablecoins are not cash but merely substitutes for cash, reflecting the credit risk of the issuing company and its ability to manage operational risks: "Essentially, what the brand of a stablecoin tells you is who the issuer is. Therefore, because the issuing institution is that organization, your credit risk is X or Y. This is not something you do with dollars."Currently, approximately $210 billion in stablecoins have been issued globally, with Tether issuing about $142 billion in USDT and Circle issuing $57 billion in USDC. According to Visa data, stablecoin transaction volume has grown from $521 billion in the same period last year to $710 billion last month, with the number of unique stablecoin addresses increasing by 50% during the same period, reaching 35 million. As the regulatory environment becomes clearer, confidence among financial institutions entering the industry is increasing. The U.S. Congress is discussing legislation to set standards for stablecoins, the European Union implemented regulations requiring compliance from stablecoin operators earlier this year, and the UK's financial regulators plan to consult the market this year.
