A comment in Fortune states that stablecoins have seen continuous growth in both regulatory and market aspects over the past two years, but there is still no unified answer within the industry as to who will truly use such tokens in the long term. The article argues that the widespread adoption of stablecoins outside of trading scenarios is still limited by payment habits, merchant processes, and local currency systems.
Merchant payment progress is not going smoothly.
Airwallex, the Vice President of Products, stated that when he was previously in Coinbase responsible for promoting merchants to adopt stablecoin payments, the actual progress was not ideal. The most common concerns among merchants included who would handle chargebacks and whether it would add another layer of complexity to their already complicated payment systems.
The article argues that this is also one of the reasons why the retail market for stablecoins has struggled to make progress. At least in the North American market, consumers already have access to Venmo, Zelle, as well as credit card reward systems, making it difficult for stablecoins to provide a sufficiently significant new value in everyday payments.
Cross-border settlement is more like the real-world entry point.
Compared to local consumption, cross-border corporate payments are considered a closer example to the real-world use of stablecoins. The reason is that stablecoin transfers are usually faster than traditional wire transfers, and the settlement process is also more direct.
However, the article also points out that this scenario is not simple. Large enterprises may find it easier to adopt stablecoins, but smaller and medium-sized suppliers may not have the same conditions. Some markets still have restrictions on receiving payments in cryptocurrency or US dollars, and suppliers ultimately need to conduct their operations and make expenditures within the local currency system.
- Currently, the market scale of stablecoins is highly concentrated within the US dollar system.
- The article mentions that approximately 98% of stablecoins are denominated in US dollars or pegged to the US dollar.
- This means that the local currency stablecoins have not yet formed a sufficiently widespread payment network.
Airwallex starts to adjust their attitude
The article mentions that Airwallex CEO Jack Zhang remained skeptical about stablecoins in 2024, preferring the company's existing model of conducting low-cost foreign exchange transfers relying on local financial licenses and a multi-currency fund pool.
However, Airwallex has now begun to shift its focus. Dan Kim indicates that as the usage of US dollar stablecoins expands, the company has launched services aimed at the “last mile,” with a focus on helping customers exchange US dollar stablecoins for local currencies.
Airwallex also supports a startup company named Metal. This company is building a blockchain network that emphasizes compliant connectivity. The article also mentions that with the development of proxy-based AI businesses, some shopping activities may be carried out by robots in the future, which could also create new payment demands for stablecoins.
Mainstreaming still takes time.
The article argues that Airwallex's entry into the stablecoin market at this time is not without logical persuasiveness: if stablecoins ultimately become established in cross-border settlements and local exchange processes first, then such fintech companies indeed have room to enter the market.
On the other hand, competition in this area has intensified. The article specifically mentions companies such as Rain, MoonPay, as well as Coinbase, Robinhood, and Stripe among others, which are all making arrangements for stablecoins or related payment infrastructure. As for the agency-based business model of AI, it is still in its early stages and is some way from meeting the demand for large-scale payments.
Overall, the judgment in this comment is that the importance of stablecoins has been widely accepted, but there is still no conclusion in the short term regarding who will ultimately dominate the real large-scale user base and the first scenarios to be successfully implemented.
