Thread by @ChristianKaz_

1) Stablecoins are speed running commoditization. Every stablecoin at some point is going to distribute the yield to the platform it is distributing through, and those platforms will eventually pass through the yield to the customer.

2) It will be a race for these stablecoin platforms to gain distribution globally. Similar to L1s they will toss incentive fees to the platforms to help market their stablecoin as the main one for settlement, payments, etc.

3) While @Tether_to doesn’t share its yield today, it is inevitable they will at some point. They recognize they don’t need to yet, because they have a major edge in distribution.

@Tether_to 4) While they do not own the distribution layers, yet, they’re the preferred pair for trading on perps and have global recognition and distribution already.

@Tether_to 5) Over time, though, when you use any finance app, crypto exchange, when you will be using stablecoins it will just be labeled USD, and on the backend the platforms will orient your money to highest yield for you and at checkout you will choose which you will transact.

@Tether_to 6) Other ways these platforms will generate yield will be through running chains specifically optimized for payments. You’re seeing this with @1MoneyNetwork , @withAUSD , @PlasmaFDN , etc.

@Tether_to @1MoneyNetwork @withAUSD @PlasmaFDN 7) This will be a wedge in distribution as you’ll be able to run validators and own into the transaction fees of the protocol long term. Equivalent to owning into Visa’s, Swift’s, etc payment networks.

@Tether_to @1MoneyNetwork @withAUSD @PlasmaFDN 8) As some of these platforms get big enough across both businesses and consumers, they will just internalize the payments and keep the margin to themselves.

@Tether_to @1MoneyNetwork @withAUSD @PlasmaFDN 9) You see this happening in fintech and why many players are trying to become the everything app for finances whether it be on the consumer or b2b front. This is happening with Stripe and all their merchants, Block with the mixture of their consumer and merchant platforms, etc.

@Tether_to @1MoneyNetwork @withAUSD @PlasmaFDN 10) It is about capturing some % of the world’s payment volume and ideally making it happen on your network versus having to fulfill on others’

@sytaylor @HadickM @tikhbana @Nick_van_Eck