Why do all Stablecoins launch?
Stablecoins is back in the limelight. Only this week, Donald Trump’s crypto company World freedom economic (WLF), the traditional financial institution Fidelityand even the state of wyoming announced They plan to launch their own Stablecoins. And they are not alone; There is a growing list of companies and institutions that signal that they enter the Stablecoin game or launch Stablecoin wallets.
So, what drives this renewed interest?
In the core it is a combination of state aid, revenue potential and a geopolitical driving force to solidify dollar dominance. For crypto companies, a Stablecoin is an income machine. When users change billions of dollars for Stablecoins, these funds are not just in a vault. A significant part is parked in short -term US government bonds that pay about 4-5% per year. It adds quickly. For example, 5% of $ 10 billion is $ 500 million in passive income annually. And some of the largest Stablecoin issuers – as USDC—Have reserves well over billions of dollars.
At the end of the government, Stablecoins earn a different purpose: Dollar Dominance. At the first summit in the White House Krypto, State Secretary Scott Bessent explicitly said“We will keep the United States the dominant reserve currency in the world, and we will use Stablecoins to do so.”
The more Stablecoins are used globally, the more demand there is to keep US dollars in reserve. This means more purchases of US state funds, Larger dollar impactAnd in the end, global power for the American economy increased.
Although there is an opportunity for revenue for companies and a strategic government push, ordinary users will still need a real reason to use Stablecoins. Right Now, There Are A Few Scenarios Where They Make Sense – Exchanges Need Them For Trading Pairs and Liquidity, Traders Use Them as a Safe have when exiting volatile positions, institutions see them as usfulful for Foreign Exchange and TransActions Transacting in Stablecoins Instead of Fiat – Bet that’s not enough to take Stablecoins mainstream.
Innovation will need to occur, whether it is more sacrificial, more payment partners or any extra advantage compared to cash that make Stablecoins an actual upgrade or tool that solves a problem in people’s lives. Otherwise, Stablecoins will remain a crypto-in-born tool used by a small group of traders while the rest of the world continues to ask: “Why do I need this?”
Gamestop buys BTC
In an attempt to save the flaming company, gamestop (Nasdaq: GME) expressed their interest in gathering BTC. The company announced That its board had “unanimously approved an update of its investment policy to add BTC as a government fund.” They also modified their policy to allow investments in Stablecoins.
The immediate response was an almost 12% increase in $ GME on the news. But the celebration didn’t last long.
The next day, gamestop revealed It would raise $ 1.3 billion through a private offer of convertible leading banknotes – basically ous that can be transformed into Gamestop -share – to help finance their BTC acquisition and other business purposes – this is when things began to be discovered.
Investors were not happy about the debt game, and the share refueled-dropping 6% before the market and ended the day almost 25%. To make matters worse, their revenues earlier that week stated that net sales had decreased 28% compared to the previous year during the period.
Honestly, this feels more like a PR stunt from Gamestop than a strategic treasury. “Bitcoin” is still a buzz, and when companies publicly adapt to it, they tend to get a short -term boost, which is exactly what Gamestop got.
This move echoes Michael Saylor Playbook: Acquire BTC, adapt to the crypto mass and hope for long -term profits.
Interestingly, Saylor was discovered with Gamestop CEO Ryan Cohen about a month before the announcement. So it would not be a surprise to learn that Saylor had a certain influence on Gamestop’s decision.
To be fair, Saylor’s strategy worked for micro strategy (Nasdaq: mstr), which is up over 125% since it started buying BTC 2020. But it is also a high risk game. Bind your business success to a Access you cannot control is a game.
Trump’s election for Sec -chair signals cryptos support
Securities and Exchange Commission (SEC) is potentially ready to welcome a new chairman, Paul AtkinsThe nominees supported by President Trump. While Crypto was not the centerpiece of his confirmation hearing, Atkins made a point to mention digital assets in his opening remarks.
“Since 2017, I have led to industry efforts developing the best practice for the digital asset industry. I have seen how ambiguous and non-existent regulation creates uncertainty in the market and inhibits innovation. The highest priority of my presidency will give a fixed regulatory foundation for digital assets through a rational, a rational, a rational,
But what I find more interesting is that Crypto was not mentioned again after that opening note. The rest of the negotiation focused on broader issues – market structure, political positions and how atkins would handle Traditional securities regulation. The senators did not ask a single follow -up about digital assets, which is very revealing about the actual status of crypto in the American economy.
Atkins knows where his support lies, especially as a Trump approved nominee. He made sure to name digital assets to show adaptation to PRO-Crypto voters and crypto companies. But the fact that no senators picked up the thread shows how low crypto is still ranked on the list of national priorities in securities and banking industry.
See: History of Bitcoin with Kurt Wuckert Jr.
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