Super Apps Challenge Traditional Finance with Stablecoins

Jan Van Eck, the CEO of exchange-traded fund (ETF) provider VanEck, has predicted that the rise of "super apps" will challenge traditional finance's payments system. In a recent interview, Van Eck highlighted that apps supporting stablecoins will soon exert pressure on conventional payment methods. Stablecoins, which bypass intermediaries like Visa and Mastercard that typically charge around 3% in fees, offer a more cost-effective alternative. This shift could lead to increased competition in the market, with potential players including Kraken, Robinhood, and X.

Van Eck's comments come at a time when the regulatory landscape for stablecoins is evolving. The GENIUS Act, signed into law by President Trump, establishes a stringent regulatory framework for firms issuing payment stablecoins. This regulatory environment is expected to influence the market dynamics, with both incumbents and new entrants vying for a share of the stablecoin space.

Circle, a prominent stablecoin issuer, has performed well this year, but Van Eck notes that new competitors are preparing to enter the market. The impact on earnings, whether positive or negative, is anticipated to take several quarters to materialize. However, the market is already reacting in anticipation of these changes, with stocks of incumbents like Ethereum and Circle showing strong performance. This market movement reflects the growing interest and investment in the stablecoin sector, as well as the potential for new competitors to disrupt the traditional payments system.