Today, we are seeing signal with advancing legislation, VC investing, acquisitions like Stripe/Bridge, and companies like Meta exploring integrations.
Stablecoin characteristics
Fiat-backed stablecoins have five important properties:
- They are pegged to specific fiat currency — 99% in USD, which increases demand for US treasuries and creates more dollar strength.
- They make money movement cheaper — especially in developing markets
- They make money movement faster — 24/7, 365
- They are decentralized and open-access — globally available on day 1.
- They are programmable — smart contracts for escrow, subscriptions services, supply chain, payroll, loyalty programs…
Growing use cases
The number of non-crypto use cases are growing, and companies like Stripe are helping some of the worl’d’s largest enterprise with stablecoin strategies, such as faster global expansion or easier custody of funds.
For example, SpaceX, uses Bridge to collect payments in different jurisdictions and move them through stablecoins into its central treasury.
It seems we are in the pre-rounds of a strong product market fit. Stablecoin is the bridge between traditional finance and wider blockchain adoption.