WSPN on "Stablecoin 2.0": Can It Usher in a New Era for the Stablecoin Market?
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WSPN on "Stablecoin 2.0": Can It Usher in a New Era for the Stablecoin Market?
All efforts ultimately point to one core goal: maximizing user experience value.
Navigating Web3 tides with focused insightsBy: LindaBell
The stablecoin market is continuously evolving. While traditional solutions like USDC and USDT still dominate the market, they face challenges such as low capital efficiency and centralization. At the same time, a wave of new stablecoin projects has emerged—such as high-yield USDe, RWA-based decentralized stablecoin Usual Money, and WSPN, which aims to build a payment ecosystem network. These emerging players are intensifying market competition and expanding user options.
In this context, ChainFeeds invited Raymond Yuan, founder of WSPN, for an in-depth discussion on the evolution of stablecoins, covering topics including the concept of "Stablecoin 2.0," market structure, and regulatory compliance.
Key Takeaways:
1) WSPN's proposed "Stablecoin 2.0" aims to drive broader global payment applications and leverage digital technology for large-scale market expansion.
2) Licenses are merely entry barriers to markets—their primary role is integration into mainstream local economies. Ultimately, a project’s success depends on whether it delivers real value to users.
3) As the stablecoin market grows to multiple trillions of dollars, market share will become more balanced. Even the largest issuers may hold only 20%–30% of the market, while many smaller stablecoins each capture around 1%.
4) The success of stablecoins relies on the prosperity of the entire ecosystem—including continuous innovation in payment services, KYC, and AML tools. All efforts converge on one core goal: maximizing user experience value.
WSPN: Building a Payment Network to Advance Stablecoin Adoption
WSPN (Worldwide Stablecoin Payment Network) is a digital payment company focused on building next-generation stablecoin infrastructure, aiming to promote widespread adoption of stablecoins within the global financial system through a dedicated payment ecosystem. Its core team comprises industry experts, including CTH founder Raymond Yuan, Zero Knowledge Consulting founder Austin Campbell, and former Visa president John Partridge.
WSPN has already launched its first stablecoin, WUSD, with plans to release a euro-denominated stablecoin, WEUR. According to founder Raymond Yuan, the “W” in WUSD stands for “stable,” symbolizing its reliability. To ensure stability, WSPN implements several measures: It follows a fiat-collateralized model where every WUSD is backed 100% by funds held in bank accounts. For storage security, it uses private key sharding technology and partners with third-party custodians. In redemption, WSPN operates a 24/7 service with operational centers in North America, Asia, and Europe to promptly meet customer needs.
Additionally, WSPN has partnered with Visa and Mastercard to launch stablecoin-powered payment cards, tested in Japan. Users can make payments at convenience stores and supermarkets using these cards. WSPN’s stablecoins are also being used by commodity traders and cross-border payment companies for settlement, and the company is actively expanding into stablecoin-based wealth management markets.
On August 16 this year, WSPN completed a $30 million seed round led by Foresight Ventures and Folius Ventures, with participation from Hash Global, Generative Ventures, Yunqi Partners, and RedPoint China. Raymond Yuan said part of the funding will go toward team expansion, while another portion will support ongoing investment in infrastructure development.
From “Stablecoin 1.0” to “Stablecoin 2.0”: WSPN’s Vision for a Payment Network
WSPN introduces the concept of “Stablecoin 2.0,” envisioning a user-centric, digitally driven payment network. Raymond Yuan notes that although “Stablecoin 1.0” solutions like USDT have surpassed $160 billion in circulation, their use remains largely confined to the crypto space, limiting growth potential. Current payment systems often require linked identity-verified accounts and bank cards, restricting free global payments. Stablecoins could play a greater role in transforming today’s “electronic payments” into true “digital payments.” With advancements in AI and smart internet technologies, the world will need a new kind of digital payment tool—and stablecoins may be the closest solution available. Raymond Yuan forecasts that within the next decade, the stablecoin market could reach $10 trillion, making this vision a reality.
Raymond Yuan further outlines four key distinctions between Stablecoin 1.0 and Stablecoin 2.0:
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Productization: Stablecoin 1.0 offers limited productization and presents high barriers for non-industry users. In contrast, WSPN envisions Stablecoin 2.0 as a full product matrix—comprising dozens of integrated products—that enables mass-market adoption;
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Governance: Stablecoin 1.0 features highly centralized governance, contradicting Web3’s decentralization ethos. Stablecoin 2.0 emphasizes community governance and truly decentralized management;
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Use Cases: Stablecoin 1.0 is primarily used within cryptocurrency ecosystems. Stablecoin 2.0 targets global asset allocation, extending to everyday spending, booking flights and hotels, and investing in U.S. stocks;
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User Incentives: USDT and USDC offer no direct incentives to users. WSPN plans to introduce a governance token to capture and redistribute most of the ecosystem’s value back to users.
Navigating Competition: WSPN’s Compliance and Revenue Strategy
Regulatory compliance remains a cornerstone of stablecoin development. Raymond Yuan stresses that since its inception, WSPN has adhered to a clear principle: business operations must only commence after obtaining proper authorization from local regulators. Between compliance and market expansion, WSPN prioritizes compliance—even if it means sacrificing speed or short-term efficiency—to ensure legal and secure operations.
To date, WSPN has secured critical licenses in the U.S. and the Netherlands, including the U.S. MTL (Money Transmitter License) and the Dutch EMI (Electronic Money Institution) license. In Asia, WSPN is actively applying for Hong Kong’s sandbox permit and has submitted an application for Singapore’s Digital Payment Token (DPT) license to the MAS (Monetary Authority of Singapore). The company is also in discussions with regulators in Thailand and other Southeast Asian countries, expecting progress within the next three to six months. For offshore markets, WSPN expects to obtain a license in the British Virgin Islands shortly and is applying for relevant licenses in Dubai and Abu Dhabi, UAE, aiming to complete these applications by Q1 2025.
Raymond Yuan emphasizes that while licenses serve as market entry thresholds, they are not the sole determinant of success. Their main function is enabling integration into mainstream economic systems. In mature regulated markets, only licensed entities can open bank accounts or be accepted as legitimate partners or payment methods—effectively removing structural ceilings for growth. However, ultimate success hinges on delivering genuine user value through usability, diverse applications, and effective user incentives.
Beyond compliance, ensuring sustainable development amid intensifying competition is crucial. Raymond Yuan explains that WSPN’s revenue model is diversified, with income growth tied directly to the widespread adoption of its stablecoin—not passive gains from unredeemed balances.
Yield from underlying assets is the most common stablecoin revenue stream, typically derived from interest on reserves. However, recent events—such as the Silicon Valley Bank collapse causing stablecoin de-pegging—have exposed risks associated with bank deposits. To mitigate such risks, some firms have shifted reserves to government bonds for more stable returns. Still, bond prices remain sensitive to interest rate fluctuations. WSPN adopts a more cautious approach by building a diversified portfolio of highly liquid assets—including sovereign bonds from various countries and other high-yield financial instruments—to spread risk and optimize returns.
Besides asset yield, WSPN is exploring additional revenue streams, such as deploying its stablecoin across multiple blockchains. Currently integrated with six major chains, WSPN plans to expand to 20. As stablecoin usage grows across these networks, transaction volume will generate fee income. Raymond Yuan mentioned that a portion of these fees may eventually be returned to users, enhancing engagement and loyalty. Platform fees represent another significant future revenue source. WSPN intends to integrate its stablecoin into platforms across e-commerce, gaming, and beyond, earning revenue shares from transaction activity.
Market Outlook: Trillion-Dollar Scale and More Balanced Distribution Ahead
According to DefiLlama, the total market cap of global stablecoins exceeds $168.3 billion, with USDT holding a dominant 70.09% share. Raymond Yuan acknowledges the current over-concentration but remains optimistic about the future. He believes that as the market expands into multiple trillions of dollars, market share will distribute more evenly. Even the largest issuer might control only 20%–30%, while numerous smaller stablecoins each hold around 1%. He draws a parallel to the U.S. banking sector, where a rule of thumb limits any single bank’s deposit concentration to no more than 16%—a similar pattern could emerge in the stablecoin market.
When discussing DeFi stablecoins that offer enhanced use cases and yields, Raymond Yuan clarifies that WSPN does not see them as primary competitors. Instead, WSPN views traditional payment systems as its main competitive arena. WSPN’s long-term goal is to build a compliant, secure, and transparent payment infrastructure, whereas decentralized stablecoins mainly focus on offering high yields within crypto ecosystems. However, such yield models heavily depend on market growth and may not survive prolonged bear markets.
WSPN’s Roadmap: Maximizing User Experience Value
As competition heats up, WSPN is actively shaping its future strategy across multiple domains. On productization and user experience, WSPN has launched its own wallet app, StableWallet, and plans to roll out over ten additional applications, forming a comprehensive product matrix to enhance usability. Raymond Yuan also revealed that WSPN is exploring integrating AI technologies into its product suite.
Regarding governance, Raymond Yuan points out that trust in many existing stablecoins stems from long-standing industry confidence—USDT maintains trust due to its longevity despite past de-pegging incidents, while USDC benefits from its strong compliance posture. However, in the Web3 era, he argues, trust should rest not on institutional reputation, but on transparent rules and technology. To achieve this, WSPN plans to build an API-first platform, using oracle tech to record asset allocations in real time, and implement on-chain voting so community members can genuinely participate in decision-making—enhancing both transparency and security. For user incentives, WSPN intends to use a governance token to capture and distribute ecosystem value.
Finally, Raymond Yuan emphasizes that stablecoins are far more than just issuing tokens. Their success depends on the overall health and innovation of the ecosystem—including payment services, KYC, and AML tools. Every initiative—from infrastructure development and global licensing to market expansion and exchange listings—ultimately serves one central mission: maximizing user experience value.
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