Stablechain and stablecoin mania: Why so many?

The stablecoin market is entering a new, highly competitive phase driven by regulatory clarity and the desire of applications to own customer distribution and economic yield, leading to a proliferation of stablecoins, but a future rebundling into fewer dominant brands is anticipated.

• Stablecoin market is rapidly expanding with new regulations and increasing competition.

• The future may involve many stablecoins or their abstraction into a commodity-like USD, followed by a rebundling into fewer major brands.

• Tether leverages brand recognition globally, while Circle focuses on regulated, business-centric services and yield sharing.

The stablecoin landscape is evolving into an intense 'stablecoin race' following the passage of the Genius Act, the US's stablecoin law, with numerous new entrants and existing players like Tether and Circle vying for market share. Experts predict a shift from a few dominant stablecoins to many, as intermediaries seek to capture yield and user experience, ultimately leading to a potential rebundling around a few major brands or a commodity-like abstraction of stablecoins within applications.

Stablecoin Competition Landscape

• 00:02:41 The stablecoin market is experiencing a significant surge in activity, with new players like Plasma and Tempo, along with existing giants such as Tether, Circle, and Athena, intensifying competition. This growth is partly fueled by the passage of the Genius Act, a new US stablecoin law. Nick Carter's perspective, supported by Rob Haddock, suggests a future with many stablecoins rather than just a few, driven by intermediaries' desire to own the end customer and control economic distribution by issuing their own stablecoins or white-labeling services.