Original | Odaily Planet Daily (@OdailyChina)
Author | Wenser (@wenser 2010)
The stock price of Circle, the "first US stablecoin stock", continues to soar, igniting capital's enthusiasm for blockchain concept stocks and making traditional enterprises eager to move. Especially with policy relaxation - the US stablecoin regulatory bill "Genius Act" and Hong Kong stablecoin regulatory bill have been successively passed, and many traditional companies want to get a piece of the profitable stablecoin pie.
Based on these demands, the veteran stablecoin issuer announced the establishment of Paxos Labs, aimed at helping institutions issue branded stablecoins, deploy tokenized yield strategies, and manage tokenized assets. Odaily Planet Daily will explore the platform's development and whether the Stablecoin as a Service (SaaS) business model is viable in this article.
[The rest of the translation follows the same professional and accurate approach, maintaining the original meaning while translating into clear English.]Since June, the daily trading volume of US dollar stablecoins has exceeded $100 billion, significantly surpassing Bitcoin and Ethereum's trading volume. According to Tether and Circle's quarterly reports, out of the total $250 billion in US dollar stablecoins, at least 80% of reserve assets are in US Treasury bonds, which is equivalent to an additional $200 billion in US Treasury bond demand. According to Standard Chartered Bank, by 2028, the stablecoin market size will reach $20 trillion, corresponding to a US Treasury bond demand of $1.2 trillion to $1.6 trillion, making stablecoin issuers the second-largest buyer of US Treasury bonds after the Federal Reserve. US Treasury bonds with yields around 4%-5% are the largest revenue source for numerous stablecoin issuers. (For more information about Tether's business model, see the article 'USDT, the "First Stablecoin", Reaches New Market Cap, Unveiling Tether's Billion-Dollar Empire') In addition, Tether's reserve funds include gold, Bitcoin, and some commercial paper, which are also part of its revenue composition. This diversified revenue source is one of the key reasons institutions are eager to enter the stablecoin market. Industry Mega Trend: Stablecoin Payment Mainstreaming In the long term, stablecoin payment mainstreaming is a major trend. After electronic payments led by PayPal and mobile payments led by WeChat Pay and Alipay, stablecoin payments led by USDT and USDC are gradually becoming an undeniable industry force globally. Compared to the slow and complex Swift system, on-chain stablecoin payments are low-cost and highly efficient, undoubtedly outperforming traditional payment channels. With stablecoin regulatory bills about to be implemented, stablecoin payment mainstreaming is inevitable, which is why internet giants like Alibaba and JD Group are rushing to stake their claim. (For details about JD Group's entry into stablecoins, see the article 'After Missing the Payment Decade, Will Liu Qiangdong Launch JD's "Second Payment Revolution" via Stablecoins?') For these reasons, Paxos Labs views SaaS as a mature technical solution and attempts to establish its own "branded stablecoin issuance territory". If successful, the stablecoin projects Paxos Labs subsequently participates in will collectively build a stablecoin ecosystem network that can compete with USDT and USDC. (Note: The translation continues in the same manner, maintaining the structure and key terminology as specified.)
