The Current State of Stablecoins, Regulation, and New Opportunities

Recently, stablecoins have become a hot topic in the industry. As places like Singapore and Hong Kong accelerate regulatory legislation for stablecoins, all parties are preparing for compliant versions of stablecoins. This article will explore the current status of stablecoins, regulatory trends, and new opportunities for small and medium-sized enterprises.

AllScale's stablecoin solution

AllScale is building an operating system to help traditional enterprises and small to medium-sized businesses use stablecoins, aiming to bridge the "last mile" of enterprise-level stablecoin payments. They are committed to helping businesses comply, securely, and conveniently complete end-to-end needs such as receiving payments, sales, and payroll through stablecoins.

The AllScale team members mostly come from core companies in the payment industry, focusing on solving the "last mile" problem of enterprise-level stablecoin payments. They follow the logic of the "smile curve," concentrating on the "downstream" of stablecoin payments, helping the intermediary layer to effectively implement scenarios.

How Enterprises Can Use Stablecoins "Without Awareness"

AllScale is not a bank, does not provide custody services, and is not involved in funds or issuing stablecoins. Their core focus is on full-process application layer development and process integration. For example, they develop invoicing systems for labor brokers and small to medium-sized enterprises in the Asia, Africa, and Latin America regions, managing accounts receivable, allowing clients to pay simply, securely, and compliantly with stablecoins through all channels.

Global Stablecoin Project Trends

The US market highly values APIs and SaaS, with a high level of activity in the tool layer and application layer. In contrast, many brands in the Asian market are leaning towards payments, exploring the issuance of stablecoins, especially with frequent actions from cross-border payment companies. Additionally, many projects (including DeFi projects) are beginning to explore transformations in terms of "compliance."

Long-term Potential of Payment Stablecoins

Stablecoins are considered "overvalued in the short term and undervalued in the long term." In the short term, people may overestimate the progress made within a year; however, in the long run, their value might be underestimated. Stablecoins are not just "fast"; they are also "internet money"—programmable, composable, and permissionless, which will reshape people's understanding of currency.

Opportunities for Small and Medium Enterprises

The opportunities for small and medium-sized enterprises mainly lie in the application layer, including:

1. Native scenarios: such as on-chain DeFi, smart contract-driven financial services.
2. Embedded Scenario: Integrate stablecoin payments into vertical SaaS.
3. Transforming traditional scenarios: such as microloans, trade financing, etc.

SMEs need to focus on "payment + scenarios" rather than simply doing payments.

Future Outlook

Expectations for the stablecoin market include:

1. Eliminate the "stigma" and make people aware that Crypto is a technological innovation.
2. Traditional financial institutions deeply involved, opening digital currency custody APIs.
3. Form a closed-loop usage to achieve the full scenario of stablecoin use from "salary collection - loan - payment - consumption."

Overall, the "bubble" in the stablecoin market may be the key to breaking the traditional financial path dependence. In the short term, people may overestimate the impact of stablecoins, but this overestimation is important as it attracts more individuals to invest and engage, driving the establishment of a new ecosystem. In the long run, the impact of stablecoins may be underestimated. This field is full of opportunities and deserves our continuous attention and exploration.