The Hidden War Behind Stablecoins: Issuers, Applications, and Users—Who Will Be the 'Biggest Winner'?
The article explores the intense competition among stablecoin issuers, applications, and users over the lucrative profits generated by stablecoins. Issuers like Tether and Circle earn significant risk-free returns by investing user funds in cash equivalents, creating a highly profitable business model. However, applications (wallets, exchanges, DeFi protocols) that control user relationships demand a share of these profits, leveraging their distribution power to negotiate revenue-sharing agreements or even launch their own branded stablecoins (e.g., Aave’s GHO or PayPal’s PYUSD via white-label services). Users, especially in developed markets, increasingly expect yield on their stablecoin holdings, pressuring applications to offer returns. This dynamic creates a three-way tug-of-war, with applications caught between profit-retentive issuers and yield-seeking users. The author suggests that users may ultimately benefit the most from this competition, gaining a larger share of the profits as the ecosystem evolves.
marsbit02/17 13:09
