TechFlow, August 20 — According to Zhitongcaijing, a recent in-depth research report from Bank of America examines the transformative potential of stablecoins within the financial system. While facing regulatory controversies, this digital asset has already demonstrated unique advantages in areas such as cross-border transactions and retail settlements. The report highlights that cross-border peer-to-peer (P2P) payments represent the most disruptive application for stablecoins—offering significantly higher settlement efficiency and lower costs compared to traditional banking systems, potentially becoming a major channel for capital flows in emerging markets.
Notably, Shopify’s move allowing merchants to accept USDC stablecoin is seen as a landmark event for retail-sector penetration. Furthermore, the recent on-chain repurchase transaction involving USTs tokenized bonds underscores institutional investors’ growing recognition of stablecoin-based settlement. On the demand side, Bank of America estimates that stablecoins could generate potential U.S. Treasury bond demand ranging from $25 billion to $75 billion over the next 12 months, although this would not be sufficient in the short term to alter the overall supply-demand dynamics of the Treasury market.
Of greater concern is their impact on money market funds (MMFs): some MMF clients have explicitly stated they will accelerate tokenization efforts, leveraging blockchain systems to offer real-time interest payments as a competitive response. Taking Circle (CRCL.US)-issued stablecoins as an example, Coinbase (COIN.US) platforms have circumvented the interest-payment ban under the GENIUS Act through reward mechanisms, revealing innovative market pathways to bypass regulation.
