E196｜Stablecoin Battle: Circle's rise and the competition between new forces entering traditional finance

As the US Genius Act continues to advance, the competition for stablecoins has become fierce: On the one hand, it is the competition between the compliant stablecoin USDC and the non-compliant stablecoin USDT in the crypto market, but as global stablecoins are compliant, whether USDT can continue to maintain its existing leading position is related to the battle of the entire stablecoin pattern; on the other hand, global consortiums such as JPMorgan Chase, Bank of America, Wells Fargo, and Citibank have begun to form alliances to discuss the issuance of stablecoins for stablecoins; at the same time, Silicon Valley financial technology giants Stripe and Paypal have been vigorously betting on stablecoins; in politics, political capital such as the Trump family, US Secretary of Commerce Howard Lutnick and the Abu Dhabi royal family have also entered the market and become a key variable in this stablecoin war. In this episode, we start with the listing of the first stablecoin stock and the USDC stablecoin issuer, Circle, and try to disassemble the hottest and core issues discussed in the stablecoin industry: - Why is Circle so popular to list, with a rise of nearly 4 times in two days? - Coinbase's full support is the key to Circle's rise? Key contract origin, risks and detailed terms that test Circle's future profitability - New variables brought by the entry of politics and big capital: What are the six centralized stablecoin alliances for traditional finance? - The double overlap between macro environment and accidental factors: the starting volume of USDC, the two rapid growth periods and the critical moment of being close to a major defeat - The same stablecoin business: Why is the profitability gap between USDC and USDT huge? - With policy support, the two core directions and key strategies for the development of stablecoins [Anchor] Hongjun Jane: Founder of Silicon Valley 101 and Podcast Manager Liu Feng: Manager of Web3 101, Partner of BODL Ventures, former editor-in-chief of Linked News [Guest] Can Sun: Co-founder of Backpack Exchange, head of legal compliance (Linkedin: https://www.linkedin.com/in/can-sun/) Zheng Di: Frontier Technology Investor (Knowledge Planet: 22136749) [You will hear] Circle's listing soars: Digital US dollar reconstructs the financial settlement pattern 03:57 Why is Circle popular: Digital US dollar redefining Wall Street and Finance 05:35 The U.S. Genius Act promotes: 2 trillion yuan in 3 years, and the scale of the stablecoin market has soared by 10:15 The regulatory details of the Genius Act are relatively clear, but it is a big test for the industry giant Tether, Circle's history of making a fortune and transformation: from multiple defeats to focusing on stablecoins 15:07 The first batch of stablecoins boom in the industry in 2018, USDC came into being 16:58 Circle's three major businesses before stablecoins: wallets, exchanges, and over-the-counter trading 20:21 The 2019 cryptocurrency winter hero cut off his arm: cutting off all other businesses "binding curse": Is Circle and Coinbase considered an "unequal treaty" 23:57 The beginning of the story: Circle and Coinbase launched a joint venture in 2018 30:08 Coinbase’s strong endorsement is worth it: liquidity is the biggest challenge for stablecoins 32:58 Renegotiation in 2023: Two details of the prospectus agreement dismantled repurchase and cooperation details 34:47 Revenue exceeds 56% paid to Coinbase: Coinbase is paid US$900 million, Binance is only US$60 million 35:49 Why does the Genius Act not allow stablecoin issuers to pay interest to users? Preventing the bank from bankruptcy 36:28 The big hidden dangers of Circle and Coinbase: Is joint promotion considered disguised interest payment? 38:16 Six centralized stablecoin alliances with traditional finance - USDT: Tether+Bitfinex+Cantor Fitzgeral (US Secretary of Commerce former CEO) + CEP (Son of the United States Secretary of Commerce + SoftBank Investment) - USDC: Circle+Coinbase - USD1: Binance+Trump FamilyUSD1+MGX Abu Dhabi Sovereign Fund - USDB: Silicon Valley Fintech giant Stripe+Bridge - PYUSD: PayPal (less than $1 billion, smaller) - Bank Alliance Stablecoins: JPMorgan Chase+Bank of America+Citigroup+Wells Fargo)+Zelle's operator Early Warning Services+Real-time payment network Clearing House (prepared) 43:34 Circle's biggest hidden danger - Can it get rid of the legal details of the Coinbase agreement interpret the rise of USDC: rising volume and two ups and downs 47:55 Key nodes for the change in USDC's issuance - 2020 - 10 times the growth of DeFi Summer in 2022 - 2023 Silicon Valley Bank Breaking + Suffocation 2.0 (Operation Choke Point 2.0) - A new round of policy positives at the end of 2024 56:13 Coinbase's full support is the key to USDC's volume 58:43 If the Federal Reserve had not saved Silicon Valley banks, USDC would have been out of the blue. 1:00:00. The difference between USDT and USDC blockchain distribution: Justin Sun's tide accounts for more than half of the USDT volume, which is also stablecoin business: Why is the profitability gap huge 1:01:39. Comparison of reserve funds: USDC structure is like Yu'ebao; USDT's 18% non-compliant reserve funds earned 50% of revenue 1:02:51. "TEDA is the largest lending institution in the entire blockchain world" 1:07:40. Promotion or back-payment: The market's top and runner-up difference is huge. The core strategy of stablecoin competition is 1:08:29. USDC's compliance path: huge, but its long-term competitiveness may exceed Tether 1:12:43. The dilemma and core of stablecoin in traditional financial institutions: distribution + liquidity 1:13:12. The stablecoin market winners take all? 1:14:23 The future expansion path of stablecoins: touch consumers through the ToB scenario + on-chain transactions 1:21:26 Inflation and currency depreciation in Turkey and Africa have stabilized 1:24:04 Don’t educate users, but quietly embed them into the existing financial system [Related Podcasts] E186｜The wave of US stablecoins issuing coins, how can blockchain change the traditional financial landscape? https://www.youtube.com/watch?v=krlJ3NpsTwE E182｜Shadow dollar and the new financial order: Exposing the most profitable company in the world per capita Tether https://www.youtube.com/watch?v=GQLs7iabbFw [Producer] Hongjun [Later] AMEI [Operation] Chen Siyang, Sun Zeping, Wang Ziqin [BGM] Anticipating a New Day - Stationary Sign Estimations - Christoffer Moe Ditlevsen Clockmaker's Daydream - 369 [Find us here] Official account: Silicon Valley 101 Listening channel: Apple Podcast｜Spotify｜Little Universe｜Himalaya｜DragonflyFM｜LitchiFM｜NetEase Cloud Music｜QQ Music Other Platforms: YouTube｜Bilibili Search for "Silicon Valley 101 Podcast" Contact Us: podcast@sv101.net