Stablecoins adoption will expose global businesses to US treasury investments

It's no longer news that there's a shift in how businesses handle their income, we get fresh reports almost every other day on new businesses (including non-banking or finance companies) exploring the idea or already setting up bitcoin treasuries.

About a month ago, I covered a report highlighting that businesses bought the most Bitcoin this year, and this is expected to continue being the case for the next couple of years.

It's a convenient conclusion to make because mass crypto adoption will generally ignore bitcoin for a couple of reasons including that it will be considered already too expensive and unlikely to grow much higher. The masses will have their eyes on newer projects for potentially higher returns. We've already seen this happening with memecoins on Solana, the masses want quick and easy money, hence, businesses will continue to dominate bitcoin purchases.

That said, bitcoin won't be the only thing they'll throw money at. With several other crypto assets already getting filed for ETFs, we can expect that capital will flow into more cryptocurrencies than Bitcoin.

Now what most people won't expect is that great value will flow into stablecoins too. Most businesses will continue to hold exposure to the USD for what's generally considered “stability” but not in the way most would think.

No, businesses will not just get up and buy USDT to hold, there's no incentive to that at the moment. What exists as incentives are offered by third-parties and that introduces risks that may be above tolerance levels for most traditional businesses.

As a result, what's to be expected is that businesses will opt for what gives them more control and less risk.

Generally, a lot of these companies will issue their own stablecoins in the same way as top stablecoins issuers do today. But we can understand that this won't be very practical for most businesses, so the best approach here would involve using pre-existing issuance and management solutions from other competent companies.

Stripe’s Bridge: Stablecoin issuance in minutes

It literally does say that on their website here.

With a single API, launch your own custom stablecoin and earn rewards. When used with Bridge’s Orchestration APIs, you can easily convert between your native stablecoin and any other fiat or digital currency.

When you use a Bridge issued stablecoin, we can ensure your funds are uniquely managed and protected.

Move between your Bridge issued stablecoin and any other currency or stablecoin through our Orchestration APIs.

Balances held with Bridge are invested in a combination of cash and US treasuries. Any returns on funds are shared directly with you.

What we have here is that with Stripe’s Bridge, businesses can issue their own stablecoins without having to build the management infrastructure or worry about security.

Built-in is the ability to easily move between various other stablecoins and traditional fiat currencies, so this means that consumers or users of these businesses don't have to worry about trade restrictions both on-chain and off-chain, an interoperable experience.

In the last paragraph, we find that when balances are held on bridge, it is invested into US treasuries and all yields are shared with the businesses.

What we are working with in real time is a case where every business becomes a mini financial institution, having a controlled custom currency which enables it generate extra income outside of its general business operations.

As much as this is a plus for the USD, it's an even bigger plus for businesses, especially publicly traded companies because growing demand for US treasuries through the adoption of USD-stablecoins by businesses and individuals will likely increase the United States debt because yield would fall, creating an incentive for the US government to do what they do best and that would in turn make the stocks and crypto market very attractive for individuals and businesses looking to hedge their positions.

A lot can happen in the next couple of years, but what's certain is that trillionaires will be made over the next decade.

Posted Using INLEO