1/ How stablecoins could soon go from a $130B market to a multi-trillion dollar market 🧵
Link to the complete @jumpcapital thesis below:
jumpcap.com/insights/stabl…
Link to the complete @jumpcapital thesis below:
jumpcap.com/insights/stabl…
2/ Stablecoins gained meaningful traction over the past year as a base pair for most crypto exchange markets, as trading volume grew
We believe that the next leg of stablecoin adoption will be as a global medium of exchange
We believe that the next leg of stablecoin adoption will be as a global medium of exchange
3/ While the lightening network has shown some progress, we believe that stablecoins will be the dominant medium of exchange crypto-asset in the near to mid-term for two reasons
i. Composable with digital economies
ii. Single, stable currency denomination
i. Composable with digital economies
ii. Single, stable currency denomination
4/ Here’s how we see adoption evolving
5/ Remittances & B2B payments
Due to cap. controls, reg. hurdles, and monopolized corridors on traditional rails, cross-border transactions take several days+incur high fee
With local fiat on/off ramps, people can now send international transfers in stablecoins within seconds
Due to cap. controls, reg. hurdles, and monopolized corridors on traditional rails, cross-border transactions take several days+incur high fee
With local fiat on/off ramps, people can now send international transfers in stablecoins within seconds
6/ Cross-border payroll
As workforces become distributed businesses are increasingly looking to hire the best talent in a geo-agnostic manner
For SMEs without intl. locations stablecoin rails to pay geographically distributed talent makes a challenging process more convenient
As workforces become distributed businesses are increasingly looking to hire the best talent in a geo-agnostic manner
For SMEs without intl. locations stablecoin rails to pay geographically distributed talent makes a challenging process more convenient
7/ Borderless capital markets
Through both decentralized and centralized platforms (e.g. Maker, Compound, Maple, TrueFi etc.), stablecoins make it possible for anyone around the world to access the best capital markets instantaneously without volatility risk
Through both decentralized and centralized platforms (e.g. Maker, Compound, Maple, TrueFi etc.), stablecoins make it possible for anyone around the world to access the best capital markets instantaneously without volatility risk
8/ Digital Economies
As stablecoins become widely used we expect them to fuel the growth of purely digital economies
From NFT payments, to tips on Twitter, online commodities will become increasingly monetized, as stablecoins enable everyone in the world to transact instantly
As stablecoins become widely used we expect them to fuel the growth of purely digital economies
From NFT payments, to tips on Twitter, online commodities will become increasingly monetized, as stablecoins enable everyone in the world to transact instantly
9/ Local Economies
As global stablecoin holdings increase, we expect local businesses to begin accepting stablecoins, owing to the low transaction costs vs. traditional providers, as well as instant settlement
As global stablecoin holdings increase, we expect local businesses to begin accepting stablecoins, owing to the low transaction costs vs. traditional providers, as well as instant settlement
10/ In countries with weak currencies this could be in the form of crypto-dollarization
While more developed countries may develop front-end UIs in local currency with the back-end in stablecoins
A great example of this is ChaiPay and the
@terra_money ecosystem in South Korea
While more developed countries may develop front-end UIs in local currency with the back-end in stablecoins
A great example of this is ChaiPay and the
@terra_money ecosystem in South Korea
11/ While some use cases, such as remittance, have seen some development, we believe there is a long way to go in the building and adoption of most of these use cases
If you are building in this space, my DMs are open
If you are building in this space, my DMs are open
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