Core Insights - The article discusses the evolution of supply chain finance, emphasizing the role of stablecoins in transforming financial transactions from a credit-based model to an asset-centric model, enabling faster and more efficient capital flow [1][10]. Group 1: Stablecoins as New Financial Intermediaries - Stablecoins are designed to maintain value stability by pegging to fiat currencies or commodities, addressing the volatility issues of cryptocurrencies [3]. - Types of stablecoins include fiat-collateralized (e.g., USDT, USDC), crypto-collateralized (e.g., DAI), and algorithmic stablecoins (e.g., UST) [3]. Group 2: Impact on Financial Systems - Stablecoins revolutionize cross-border payments by enabling real-time transactions 24/7, significantly reducing transaction fees from 3% to 0.1%, benefiting small and medium enterprises in emerging markets [5]. - They serve as the backbone of decentralized finance (DeFi), providing liquidity for lending and collateral systems in platforms like Aave and Compound [6]. - In unstable economies, stablecoins act as a digital safe haven for asset preservation, gaining rapid adoption in regions like Southeast Asia and Africa [7]. Group 3: Addressing Supply Chain Finance Challenges - Traditional supply chain finance faces issues such as long payment cycles (30-90 days), financing difficulties for SMEs, and fragmented information flows [11]. - Stablecoins can facilitate instant payments, transforming cash flow access from weekly to real-time, and allow SMEs to apply for financing directly from on-chain financial institutions [11][12]. - They provide advantages for cross-border supply chains, particularly for managing prepayments and final payments in scenarios like ASEAN manufacturing and cross-border e-commerce [13]. Group 4: Future Outlook and Integration - The ultimate goal of stablecoins is to serve as connectors in the financial ecosystem rather than replacing traditional banks, enabling seamless credit flow between virtual and real economies [22]. - The integration of stablecoins with regulatory frameworks and industry standards is essential for their successful adoption and to mitigate risks associated with their use [19][20]. - Future developments may include the establishment of industry-specific stablecoins, enhanced transparency in asset reserves, and the implementation of regulatory technology to ensure compliance [23][24].