Core Insights - The cryptocurrency ecosystem in Latin America has evolved from a nascent phenomenon to a significant force reshaping financial rules, driven by economic turmoil, regulatory gaps, and innovative energy [2] - Countries like Argentina, Brazil, Colombia, and Mexico are leading the charge in utilizing stablecoins for capital redistribution, creating new investment opportunities [2] Group 1: Market Dynamics - Latin America is characterized by a fragmented market with distinct economic "islands," where stablecoins serve different purposes: Argentina uses them to hedge against hyperinflation, Mexico is cautious due to geopolitical factors, and Brazil treats on-chain dollars as a digital savings tool [2] - The demand for stablecoins in Latin America is driven by macroeconomic factors such as foreign exchange controls, extreme currency risks, and heavy tax burdens combined with a lack of banking services [8][9][10][11] Group 2: VelaFi's Role - VelaFi is a cross-border financial infrastructure platform focused on stablecoins, providing services to hundreds of businesses across Latin America, the US, and Asia, facilitating cross-border payments, fund management, and settlement [3][51] - The company aims to create a frictionless financial system that supports businesses in emerging markets to integrate into the global digital economy [3][51] Group 3: Stablecoin Demand - The real demand for stablecoins in Latin America is particularly pronounced in countries facing inflation and currency instability, with 70% of the population lacking bank accounts [6] - Stablecoins are increasingly seen as a necessary payment medium, especially in B2B and B2C transactions, due to the macroeconomic environment [8][12] Group 4: Challenges and Opportunities - The last-mile challenge remains significant, as stablecoins primarily serve as a cross-border payment medium rather than a widely accepted currency for everyday transactions [15] - The adoption of stablecoins in consumer scenarios is still limited, requiring improved infrastructure and regulatory support to enhance their acceptance [16] Group 5: Regional Insights - Brazil is viewed as a relatively mature market for stablecoins, with traditional financial players actively developing their own stablecoin ecosystems [30] - Mexico faces unique challenges due to geopolitical tensions, leading to a growing interest in stablecoin solutions to bypass traditional banking delays [34] - Argentina's high inflation and currency devaluation have led to a significant reliance on stablecoins as a means to circumvent foreign exchange controls and multiple exchange rates [35] Group 6: Future Directions - VelaFi plans to expand its offerings to include direct stablecoin payment solutions for e-commerce and gaming sectors, anticipating a shift towards a stablecoin-centric economy [46] - The company is also exploring AI payment interfaces to facilitate seamless transactions across borders, positioning itself for future growth in the stablecoin market [47]

Core Viewpoint - The company is exploring the use of stablecoin payment and settlement solutions for product sales outside mainland China, aiming to enhance payment efficiency and reduce costs for cross-border e-commerce clients [1] Group 1: Company Initiatives - The company has opened an account with an independent third-party service provider specializing in digital payment solutions involving fiat currencies and stablecoins [1] - The integration of virtual assets is expected to create significant business opportunities for the company [1] Group 2: Market Context - There is an increasing acceptance of cryptocurrencies in the global business community [1] - The company serves numerous cross-border e-commerce and overseas offline store clients who have ongoing needs for local payments and cross-border settlements [1] Group 3: Benefits of Stablecoin Adoption - Utilizing stablecoin payment methods is anticipated to enhance payment efficiency and lower costs, better meeting the needs of cross-border e-commerce clients [1] - The adoption of stablecoin payments is expected to help mitigate exchange rate risks faced by the company when transacting with clients outside mainland China [1]

Group 1 - The company is exploring the use of stablecoin payment and settlement solutions for product sales outside mainland China, including offline stores, e-commerce sales, supply chain services, and digital ecosystem businesses [1] - An account has been opened with an independent third-party service provider specializing in fiat and stablecoin omnichannel digital payment solutions to facilitate efficient and seamless value flow globally [1] - The integration of virtual assets is expected to create significant business opportunities, particularly for cross-border e-commerce and overseas offline store clients who have ongoing needs for local payments and cross-border settlements [1] Group 2 - The adoption of stablecoin payment methods is anticipated to enhance payment efficiency and reduce costs, better meeting the needs of cross-border e-commerce clients [1] - This payment method is also expected to help mitigate exchange rate risks faced by the company when transacting with clients outside mainland China [1]

Core Viewpoint - The company is exploring the use of stablecoin for payment and settlement solutions to enhance product sales outside mainland China, indicating a strategic shift towards digital payment methods [1] Group 1: Company Initiatives - The company has opened an account with an independent third-party service provider specializing in digital payment solutions involving both fiat currency and stablecoin [1] - The integration of virtual assets is seen as a significant business opportunity, reflecting the growing acceptance of cryptocurrencies in the global business community [1] Group 2: Market Demand - The company serves numerous cross-border e-commerce and overseas offline store clients, who have a continuous demand for local payment and cross-border settlement solutions [1] - The adoption of stablecoin payment methods is expected to enhance payment efficiency and reduce costs, better meeting the needs of cross-border e-commerce clients [1] - This payment method is anticipated to help mitigate exchange rate risks faced by the company when transacting with clients outside mainland China [1]

Core Viewpoint - 361 Degrees is exploring the use of stablecoin payment and settlement solutions for product sales outside mainland China, aiming to enhance payment efficiency and reduce costs for cross-border e-commerce clients [1] Group 1: Company Initiatives - The company has opened an account with an independent third-party service provider specializing in fiat and stablecoin digital payment solutions [1] - The integration of virtual assets is expected to create significant business opportunities for the company [1] Group 2: Market Context - There is an increasing acceptance of cryptocurrencies in the global business community [1] - The company serves numerous cross-border e-commerce and overseas offline store clients who have ongoing needs for local payments and cross-border settlements [1] Group 3: Expected Benefits - The adoption of stablecoin payment methods is anticipated to improve payment efficiency and lower costs, better meeting the needs of cross-border e-commerce clients [1] - This payment method is also expected to help reduce the exchange rate risks faced by the company when transacting with clients outside mainland China [1]

Core Insights - The report titled "Stablecoin Payments: Global Wave and New Financial Cornerstone" highlights the growth of stablecoin payments from January 2023 to February 2025, with a total payment settlement amount of $94.2 billion and an annualized run rate of $72.3 billion by February 2025 [1][16][23]. - B2B payments are the most active segment, with an annualized amount of $36 billion, followed by P2P payments at $18 billion, card payments at $13.2 billion, B2C payments at $3.3 billion, and pre-funding at $2.5 billion, with all segments except P2P showing rapid growth [1][16][23]. Market Overview - USDT is the most widely used stablecoin, accounting for approximately 90% of the market share by transaction volume, followed by USDC [2][16][38]. - Tron is the most popular blockchain for stablecoin transactions, followed by Ethereum, Binance Smart Chain (BSC), and Polygon, with many companies utilizing multiple blockchains for settlements [2][30]. Regional Insights - In Latin America, Tron dominates stablecoin settlements, particularly in Colombia, Ecuador, and Brazil, while Ethereum leads in Argentina and Peru [2][45]. - In Africa, Tron and Ethereum are the leading blockchains, with USDT consistently dominating transaction volumes, although USDC shows significant adoption in countries like Nigeria and Uganda [2][56][62]. - In North America and the Caribbean, Tron and Ethereum are the primary networks, with USDT maintaining a dominant position across all markets [2][65]. Company Contributions - Companies like Binance Pay, BVNK, and Bitso Business are driving the adoption of stablecoins in various sectors, facilitating cross-border payments and improving financial management for businesses [3][42][49]. - BVNK integrates stablecoin functionality with traditional banking, enabling faster and more efficient cross-border payments, while Bitso Business focuses on providing stablecoin-driven financial solutions for businesses in Latin America [42][49].

Group 1: Core Insights on Stablecoins - Stablecoins have become a major focus in the fintech sector, with Circle's stock price soaring over 350% since its launch in June 2025, and major financial institutions like Mastercard and JPMorgan exploring stablecoin payment solutions [1][2] - The B2B cross-border payment sector is expected to see significant adoption of stablecoins, with XTransfer planning to launch overseas stablecoin payment services in 2025, highlighting the potential for stablecoins to become standard in B2B transactions [1][2][3] - The application of stablecoins in B2B cross-border trade is rapidly increasing, with a reported 400% year-on-year growth in their usage from February 2024 to February 2025 [3] Group 2: Challenges in B2B Cross-Border Payments - B2B cross-border trade faces challenges such as slow settlement speeds and high transaction costs, with traditional SWIFT systems averaging 3-5 days for fund transfers and fees ranging from 1% to over 5% [2] - Many small and medium enterprises (SMEs) struggle to access the SWIFT system, facing difficulties in opening bank accounts and potential risks of fund freezes due to compliance issues [2] Group 3: Risk Management in Stablecoin Payments - Compliance and risk management, particularly anti-money laundering (AML) measures, are critical for stablecoin payments, with regulations in the US and Hong Kong emphasizing the need for adherence to AML frameworks [5][9] - XTransfer has developed a robust risk management system that combines AI technology and expert oversight to address the unique challenges faced by SMEs in B2B cross-border payments [6][7][8] Group 4: XTransfer's Competitive Advantages - XTransfer has established itself as a leader in B2B cross-border payments, processing 3% of China's export transactions and leveraging its deep understanding of the B2B landscape to respond quickly to customer needs [10][12] - The company has introduced innovative services such as local currency accounts and X2X payments, enabling faster and more efficient transactions for its clients [12][13] - XTransfer's commitment to developing a standardized global risk management framework positions it as a key player in the B2B cross-border payment industry [14] Group 5: Future Outlook for B2B Cross-Border Payments - The global trade volume is projected to reach $33 trillion by 2024, indicating significant growth potential for B2B cross-border payment solutions [10] - XTransfer anticipates a tenfold increase in transaction volume over the next five years, driven by the increasing digitization of trade and the growing adoption of stablecoins [17][18]

Core Insights - The report titled "Stablecoin Payments: Global Waves and New Financial Cornerstones" reveals a significant shift of stablecoins from niche tools to mainstream payment infrastructure, with a total settlement amount exceeding $94.2 billion from January 2023 to February 2025 [1][2][18] - The annualized run rate for stablecoin payments reached $72.3 billion by February 2025, with B2B payments being the most active segment at $36 billion [1][2][18] - USDT dominates the stablecoin market with approximately 90% market share, followed by USDC, while Tron is the most popular blockchain for stablecoin transactions [1][2][18] Summary by Category Overall Trends - Stablecoin payments are becoming a crucial part of global payment systems, with a notable increase in B2B and card payment sectors [2][19] - The total stablecoin supply has grown to approximately $239 billion, up from less than $10 billion five years ago, indicating a rapid adoption [19] Payment Types - B2B payments account for the largest share at an annualized rate of $36 billion, followed by P2P payments at $18 billion, card payments at $13.2 billion, B2C payments at $3.3 billion, and pre-funding at $2.5 billion [1][2][18][28] Blockchain Preferences - Tron is the leading blockchain for stablecoin transactions, followed by Ethereum, Binance Smart Chain (BSC), and Polygon, with varying average transaction values depending on the blockchain used [1][2][18][31] Regional Insights - In Latin America, Tron is the dominant blockchain, particularly in Colombia, Ecuador, and Brazil, while Ethereum leads in Argentina and Peru [2][49] - In Africa, Tron and Ethereum are the primary blockchains, with USDT being the most widely used stablecoin, although USDC shows significant adoption in countries like Nigeria and Uganda [2][61][68] - North America and the Caribbean also follow global trends, with Tron and Ethereum leading, and USDT consistently dominating transaction volumes across markets [2][71][74] Use Cases and Applications - Companies like Binance Pay and BVNK are integrating stablecoin payments into their platforms, facilitating cross-border transactions and improving payment efficiency [2][46][47] - Yellow Card is addressing forex shortages in Africa by enabling stablecoin transactions, having facilitated over 5 billion transactions [2][70]

Group 1 - Stripe Inc. and Paradigm are collaborating to launch a new blockchain project called Tempo, specifically designed for stablecoin payments [1] - Tempo aims to support global payments, payroll, cross-border remittances, tokenized deposits, and other financial flows, operated by a 15-member independent team led by Matt Huang [1] - The project is in partnership with technology companies like Shopify and Anthropic, as well as financial institutions such as Lead Bank, Deutsche Bank, and Standard Chartered [1] Group 2 - Stripe's CEO Patrick Collison noted that existing blockchains are not optimized for mainstream financial applications, emphasizing the practicality of charging fees in traditional currencies rather than specific blockchain tokens [2] - Tempo will allow users to pay fees using any stablecoin and aims for a processing capacity of over 100,000 transactions per second to facilitate real-time global payments [2] - The project promises predictable low fees and built-in privacy features, similar to Circle's recently launched blockchain Arc, which also focuses on stablecoin payments and offers low fees and near-instant finality [2]

Core Viewpoint - The global payment sector is poised for significant growth due to the recent signing of the US GENIUS Act and the implementation of Hong Kong's Stablecoin Regulation, which establish a regulatory framework for stablecoins, indicating a new era for the industry [1][5] Company Performance - In the first half of 2025, the company reported revenue of HKD 2.716 billion, with a gross profit of HKD 1.273 billion, resulting in a gross margin of 46.9% and a net profit of HKD 391 million [2] - The company declared an interim dividend of HKD 0.25 per share, reflecting a year-on-year increase of 4.2%, demonstrating its commitment to enhancing shareholder returns [1] Revenue Structure - The company's revenue breakdown shows that HKD 2.544 billion was generated from electronic payment terminal sales, while service revenue contributed HKD 172 million [3] - The EMEA region remains the largest contributor, generating HKD 1.084 billion in revenue, despite some sales slowdown in Europe [3] - In the USCA region, revenue increased by 39% year-on-year to HKD 499 million, driven by rising order volumes and demand for specific products [3] Market Dynamics - The company experienced steady growth in the APAC region, achieving HKD 449 million in revenue, with significant sales growth in Japan due to effective deployment of smart payment terminals [4] - Despite challenges in the LACIS region, particularly in Brazil, the company managed to achieve HKD 684 million in revenue, focusing on opportunities in Panama [4] Future Opportunities - The stablecoin payment sector is expected to see rapid growth, driven by regulatory developments and the need for efficiency in traditional financial systems [5][8] - The company aims to leverage its extensive sales network and SaaS ecosystem to replicate successful strategies in the stablecoin payment space, potentially creating new growth avenues [8] - The company is also focusing on optimizing its payment terminal product line and enhancing its SaaS ecosystem, with plans to integrate artificial intelligence to improve service capabilities [8]