A report by HTX Ventures showcases how stablecoins are beginning to shape a new dollar infrastructure, offering more efficient solutions for global payments.
Constructing a Parallel Dollar Network: Reframing Payment Architecture
Despite the long-standing dominance of the US dollar in international payments, the existing system suffers from high transaction costs, slow settlement times, and strict regulatory oversight. In this context, stablecoins provide an alternative, offering near-instant settlement and borderless circulation powered by blockchain technology.
Key advantages of stablecoins include:
* Instant settlement and real-time clearance enabled by a unified transaction structure; * Borderless circulation that requires only wallet access and internet connectivity; * Integration with multi-chain ecosystems and payment APIs; * Functioning as both settlement assets and stores of value.
Stablecoins' Role as 'On-Chain Shadow Banks'
Stablecoins are increasingly performing the role of 'shadow banks', significantly replacing traditional financial instruments. They can transform fiat deposits into short-term Treasury bills, which allows scaling US dollar liquidity across decentralized ecosystems, challenging traditional central bank control over credit creation.
Regulatory Convergence Driving Institutionalization of Stablecoins
The growing role of stablecoins in cross-border payments has drawn regulatory attention worldwide. Developed markets like the US and EU are creating frameworks emphasizing compliance, capital adequacy, and reserve transparency. HTX Ventures highlights that regulatory neutrality and certainty will be essential for stablecoins to serve as the 'dollar infrastructure of the digital age.'
The HTX Ventures report illustrates that stablecoins not only offer more efficient mechanisms for global payments but also reframe the financial architecture while raising important regulatory and safety questions.
