Stablecoins will win but Circle faces trouble
The guest argued that while stablecoins are poised to 'eat the world,' Circle and Coinbase may not benefit due to intense banking competition and Tether's dominance.
The argument
The guest asserted that traditional banks are fighting back to buy time to issue their own stablecoins. Additionally, Tether is winning the market share battle, leaving few investable avenues for retail investors to capture the upside of the stablecoin boom.
The thesis, stress-tested
✓ What validates it
- ✓Circle's market share in stablecoins continues to decline relative to Tether
- ✓Major commercial banks announce proprietary stablecoin pilots
▸ Risks discussed
- ▸Tether regulatory actions could shift market share back to regulated US entities
- ▸Banks may fail to launch competitive stablecoin alternatives in a timely manner
Hear it yourself
"Is there anything that people are excited about right now that you think is actually, like, there should be a warning issue to investors? A warning issue to investors. Not really a warning issue, but what I'll say is that stablecoins are gonna eat the world, but that does not mean Coinbase and Circle are gonna do well."
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