Stablecoin Mania Takes Center Stage: IPOs, Volatility, and Chaos Ahead?

The article discusses various finance-related topics, including geopolitical conflicts and their impact on the stock market, the volatility of the 2020s, and the risks of stablecoin mania. It also covers news on the finance industry, such as the restructuring of Vanguard's asset management group and the use of BNPL data in FICO credit scores. Additionally, the article touches on AI and automation trends, including the rise of AI companies and the use of robots in industries such as truck unloading.

The Thai stock market experienced a significant 1.71% drop on Wednesday, June 18, due to escalating political tensions between Thailand and Cambodia [1]. The decline was driven by a substantial sell-off by foreign investors, who net sold 1.13 billion baht. Piriyaphon Kongwanich, Director of Fundamental Analysis at Bualuang Securities, attributed the fall primarily to political issues, particularly the border tensions. A leaked audio clip of a conversation between Prime Minister Paetongtarn Shinawatra and Cambodian Senate President Hun Sen fueled concerns over rising political tensions. Gun Hathaisattha, Investment Strategist at CGS International Securities, noted that the market’s reaction was also influenced by the potential Cabinet reshuffle and uncertainty over whether Deputy Prime Minister and Interior Minister Anutin Charnvirakul would shift to the opposition. Reports suggested that Anutin might withdraw from the government, further destabilizing the parliamentary situation and contributing to market instability. Rumors of Anutin’s withdrawal from the coalition government have heightened concerns, as his move could reduce the government’s parliamentary majority to a narrow margin. With critical decisions requiring around 248 votes in parliament, this instability has driven further sell-offs by foreign investors. Investment strategist Wijit Arayapisit of Liberator Securities noted that internal conflicts within the government, particularly between the Bhumjaithai and Pheu Thai parties, significantly contributed to the market’s decline. Market drop tied to political issues Prakit Sirivattanaket, Managing Director of Merchant Partners Asset Management, emphasized the impact of the leaked audio clip on the sharp market drop, explaining that the content of the clip severely affected investor confidence. The ongoing political uncertainty, coupled with economic concerns, poses a risk of further declines in the Thai stock market.

In response to the crisis, the Thai Stock Exchange has announced a four-point plan aimed at restoring market confidence. Brokers have urged caution in this volatile environment and have outlined strategies for investing in the Thai stock market amid the turmoil. Yuanta Securities recommends rotating into Global Play sectors, such as upstream energy, refining, and petrochemicals, or allocating funds to Defensive Play segments, including the REIT group. Investors can then look to accumulate large-cap stocks with strong earnings growth once the political landscape becomes clearer. The SET 50 index fell more than 1% to 690 on Thursday, hitting its lowest level since early April. Losses were broad-based across the bourse, with notable declines from Advanced Info Service (-2.2%), Gulf Energy Development (-3.1%), CP All (-3.9%), and Bangkok Dusit (-2.9%). The benchmark index has now declined by approximately 23% this year.

The 2020s have been marked by increased geopolitical tensions and financial market volatility. The integration of buy-now-pay-later (BNPL) data into FICO credit scores is a significant development that could impact the credit profiles of borrowers [2]. FICO, which runs FICO, announced that it will launch two separate credit scores including BNPL data. FICO Score 10 BNPL and FICO Score 10 T BNPL will represent a significant advancement in credit scoring, accounting for the growing importance of BNPL loans in the U.S. credit ecosystem. The big question remains: will the credit profile of borrowers improve or deteriorate after BNPL loans are integrated? FICO and BNPL provider Affirm released a study in February simulating the credit score impact of BNPL loans. It showed that the majority of consumers with five or more BNPL loans from Affirm would experience higher scores or no score changes. Critics argue that BNPL leads to "phantom debt" that could hurt credit scores. The Fed reported in May that nearly one-fourth of BNPL users paid late in 2024, up from 18% in 2023.

The rise of AI and automation is another trend shaping the financial landscape. A groundbreaking UBS report projects the humanoid robot market will explode from 2 million units by 2035 to 300 million by 2050, creating a massive $1.4 trillion to $1.7 trillion addressable market [3]. This technological revolution addresses critical labor shortages and aging populations worldwide, positioning three key stocks as primary beneficiaries. Tesla (TSLA), Taiwan Semiconductor (TSM), and Nvidia (NVDA) are seen as primary beneficiaries of this market growth. Tesla leads the charge with its Optimus humanoid robot, designed to revolutionize manufacturing and household applications. Taiwan Semiconductor manufactures the advanced chips that power robot brains, while Nvidia provides the AI foundation through its powerful processors that enable robot learning and decision-making. These companies are poised to benefit from the rise of humanoid robots, addressing labor shortages and automating tedious tasks across various industries.

References:
[1] https://www.considerable.com/thai-stock-market-drops-amid-political-tensions/
[2] https://www.axios.com/2025/06/23/fico-credit-scores-bnpl-buy-now-pay-later
[3] https://www.barchart.com/story/news/33006352/the-next-trillion-dollar-boom-3-stocks-to-buy-with-300-million-humanoid-robots-on-the-horizon