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Circle plunges! Draft provisions of the CLARITY Act revealed
易方达香港
joined discussion · Mar 11 10:47

The Next Trillion-Dollar Market: How Compliant Stablecoins Are Reshaping Global Payments?

Stablecoins are the fastest-growing segment in the digital currency industry chain and also the core 'bridge' connecting traditional finance with the crypto world. It addresses the pain point of high price volatility in cryptocurrencies and serves as the cornerstone for future payment, settlement, and DeFi. Currently, the industry’s core focus has shifted from scale competition to‘compliance race’。
Global benchmark for compliant stablecoins: Circle (CRCL.N)$Circle (CRCL.US)$
The USDC, a USD stablecoin issued by Circle, is a global benchmark for compliant stablecoins. Its core competitiveness lies in:
1. Ultimate transparency and compliance: 100% of reserve assets are held in cash and short-term U.S. Treasuries, subject to monthly audits with public reporting, fully compliant with the latest regulatory frameworks in the U.S. and Europe.
2. Leading technology protocol: Its self-developed CCTP cross-chain protocol solves the challenge of seamless transfer of USDC across different blockchains, significantly expanding its use cases.
3. Clear profit model: Revenue primarily comes from interest on reserve assets, offering a simple and sustainable business model.
Circle’s rise or fall directly impacts confidence in compliant DeFi and the entry of traditional institutions.
Representative of traditional finance entering the space: Standard Chartered Group $STANCHART (02888.HK)$
Hong Kong is actively promoting the construction of a virtual asset hub, with stablecoins being a key component.Standard Chartered Group leading the Hong Kong Dollar stablecoin project HKDG, representing the strategic thinking of traditional mainstream financial institutions. Its characteristics include:
1. Pegged to local fiat currency: 1:1 peg to the Hong Kong dollar, serving cross-border trade and retail payment scenarios in Hong Kong and the Asia-Pacific region.
2. Deep financial integration: Plans to integrate with the group’s own cross-border banking services to enhance corporate settlement efficiency.
3. Regulatory sandbox first: Already advancing within the Hong Kong Monetary Authority sandbox, aiming to become one of the first licensed compliant Hong Kong dollar stablecoins.
Investment perspective: The stablecoin sector has entered a phase where 'licensing is king.' The investment logic lies in finding issuers that can be among the first to achieve full compliance in major jurisdictions and deeply embed their stablecoins into real-world commercial payment scenarios.CRCL It is currently the leader in the global compliance race, while the moves of 2888 are an important window to observe how traditional financial giants embrace this change and the effectiveness of Hong Kong policy implementation.
Investing in core industry bridges: Stablecoins are the cornerstone of the future digital financial ecosystem.E Fund Digital Technology ETF (3434) $EFUND DIGITAL ETF (03434.HK)$$EFUND DIGITAL ETF-U (09434.HK)$$EFUND DIGITAL ETF-R (83434.HK)$ Covering the world’s leading stablecoin issuers and related fintech companies, helping you make precise investments in this key growth area.
Important Notice: The issuer of this content is E Fund Asset Management (Hong Kong) Co., Ltd. This content does not constitute an invitation or recommendation to invest in fund units. Investment involves risks, and fund prices may go up or down. Before investing, investors should read carefully the fund prospectus (including the “Risk Factors” section) related to the investment risks of the fund. This content has not been reviewed by the Hong Kong Securities and Futures Commission. For detailed important notices and disclaimers regarding the above funds, please visit the E Fund (Hong Kong) website: https://www.efunds.com.hk/tc/products/50/important/.
Stablecoins are the fastest-growing segment in the digital currency industry chain and serve as the core 'bridge' connecting traditional finance with the crypto world. They address the pain point of high cryptocurrency price volatility and act as the cornerstone for future payments, settlements, and DeFi. Currently, the industry's focus has shifted from scale competition to a 'compliance race'。 The Global Benchmark for Compliant Stablecoins: Circle (CRCL.N) $Circle (CRCL.US)$ The US Dollar stablecoin USDC issued by Circle is a model for global compliant stablecoins. Its core competitiveness lies in: 1. Ultimate transparency and compliance: 100% of reserve assets are held in cash and short-term U.S. Treasury bonds, with monthly audits and public reports, fully complying with the latest regulatory frameworks in the U.S. and Europe. 2. Leading technology protocols: Its self-developed CCTP cross-chain protocol solves the challenge of seamless USDC transfers across different blockchains, greatly expanding its application scenarios. 3. Clear profit model: Revenue primarily comes from interest on reserve assets, offering a simple and sustainable business model. Circle’s rise or fall directly impacts confidence in compliant DeFi and the entry of traditional institutions. Representative of traditional financial entry: Standard Chartered Group$STANCHART (02888.HK)$ Hong Kong is actively promoting the construction of a virtual asset center, with stablecoins being a key component.Standard Chartered GroupThe Hong Kong Dollar stablecoin project led byHKDG, represents the strategic thinking of traditional mainstream financial institutions. Its features include: 1. Anchored locally...
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Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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