Reimagining Financial Infrastructure: How Stablecoins Are Quietly Reshaping Global Value Flows

Key Points

1. Stablecoins, pegged to fiat currencies like the U.S. dollar, are reshaping financial infrastructure by moving capital flows on-chain and enabling new coordination mechanisms.

2. Platforms like Aave, Compound, and Curve have grown, facilitating programmable value transfers such as escrow and interest payouts.

3. The emergence of 'shadow money' backed by real-world assets (RWA) introduces systemic risks, including over-collateralization and smart contract vulnerabilities.

4. Regulation remains fragmented globally, with the U.S. proposing the GENIUS Act, Europe implementing MiCA, and Asia adopting varied approaches like licensing in Singapore and regulatory sandboxes in Hong Kong.

5. Stablecoins are becoming a bridge to real-world utility, with projects like USDC gaining traction in global payments and compliance-focused CeDeFi.