Guotai Junan Sees Dual-Track Future for Stablecoins

Guotai Junan International has released a digital asset research report titled "Inspiration from Tether: Can Non-USD Stablecoins Break Through?" The report highlights the significant transformation occurring in the global digital asset market due to the establishment of stablecoin regulatory frameworks in major economies worldwide.

The report notes that non-USD stablecoins have expanded their foundation after years of development. This expansion, coupled with the current trend of "de-dollarization," presents new opportunities for non-USD stablecoins. According to the report, the stablecoin market is likely to evolve into a "dual-track parallel" development feature in the future.

One track will be led by US domestic compliant stablecoins, which will serve heavily regulated traditional financial and institutional markets. These stablecoins will emphasize security, transparency, and legal protection. The other track will see Tether continuing to play a crucial role in specific regions and within the crypto-native ecosystem. Additionally, compliant offshore stablecoins pegged to different sovereign currencies will accelerate their development, catering to specific geopolitical zones and diverse needs.

For Tether, the wave of US stablecoin compliance poses both a challenge to its market share and an opportunity to deepen its presence in specific "offshore" ecosystems. Meanwhile, non-USD stablecoins can also find their own potential for mainstream adoption through Tether.