Core Viewpoint - Mastercard's Chief Product Officer, Jorn Lambert, emphasizes that while stablecoins are gaining popularity, significant challenges remain before they can be effectively used as everyday payment tools [1][2]. Group 1: Stablecoin Adoption Challenges - Lambert highlights that despite the technological advantages of stablecoins, such as speed, 24/7 availability, low cost, programmability, and immutability, these features alone are insufficient for stablecoins to become viable payment methods. User experience, coverage, and consumer reach are equally, if not more, critical [1]. - Currently, approximately 90% of stablecoin transaction volume is related to cryptocurrency trading, with investors using dollar-pegged tokens to trade digital assets. This indicates a low acceptance of stablecoins for everyday consumer payments [2]. - Lambert points out that stablecoins lack a clear value proposition in regular consumer-to-merchant payments, comparing them to prepaid cards that can only be used at specific merchants [2]. Group 2: Mastercard's Strategic Positioning - Mastercard is positioning itself as a bridge between digital assets and the traditional financial system, aiming to provide the necessary infrastructure for the scalable application of stablecoins through global merchant acceptance, security, and compliance [1]. - The company has been involved in stablecoin initiatives since at least 2021, collaborating with Paxos Trust Company to facilitate the minting and redemption of the USDG stablecoin, and supporting other stablecoins like Fiserv's FIUSD, PayPal's PYUSD, and Circle's USDC [1]. - Mastercard's Chief Commercial Payments Officer, Rajesh Seshadri, notes that the conversion between stablecoins and fiat currency remains a necessary step, as the overall cost of using stablecoins includes various expenses beyond just the stablecoin itself, such as deposits, foreign exchange, compliance, and settlement [2]. Group 3: Regulatory Environment and Market Dynamics - As U.S. legislation regarding stablecoins progresses, discussions around stablecoins are intensifying, prompting new players to enter the digital asset space and encouraging financial institutions to reassess their positions in this evolving industry [2]. - Financial institutions are increasingly concerned about the potential for funds to exist as stablecoin balances rather than traditional bank deposits, raising the priority of this issue [2]. - Governments and central banks worldwide are also exploring ways to foster local ecosystem innovation to avoid economic dollarization, indicating a future emergence of diverse solutions in the stablecoin space [3].

Group 1: Web3 Companies and Market Trends - Antalpha and Circle successfully listed on Nasdaq and NYSE, with first-day stock price increases of 70% and 168%, indicating high investor confidence in Web3 infrastructure and stablecoin businesses [1] - Coinbase's upcoming inclusion in the S&P 500 index marks a significant step in integrating Web3 into mainstream financial asset allocation, likely driving capital inflow and enhancing valuation stability [1] - The trend suggests that leading Web3 companies are increasingly meeting the transparency, profitability, and regulatory compliance required for public companies, potentially attracting traditional financial institutions and institutional investors [1] - Guotai Junan International became the first to receive approval from the Hong Kong Securities and Futures Commission, significantly expanding its business scope and achieving a nearly 200% stock price surge [1] - Investors should focus on the future product deployment and customer expansion capabilities of brokerage firms involved in virtual asset businesses [1] - Companies like Coinbase and Ripple are exploring banking licenses to standardize their stablecoin, custody, and payment capabilities into traditional financial services [1] - Web3 companies are evolving from mere technology providers to new financial infrastructure operators in the digital economy, opening up greater commercial model and valuation opportunities [1] - The U.S. has incorporated digital assets into its national financial development plan, with regulatory bodies restructuring rules to balance innovation encouragement and risk control [1] - This trend indicates a reduction in policy risks for Web3 companies, with mid-to-long-term valuations likely receiving institutional support, especially for compliant leading firms [1] Group 2: Stablecoin Market Dynamics - Stablecoins have evolved from tools for hedging and on-chain payments in the crypto ecosystem to a new infrastructure for global cross-border payments, settlements, and digital finance [2] - The total market capitalization of stablecoins surged from $650 million to over $250 billion in six years, a growth of over 380 times, with projected transaction volumes reaching $27 trillion in 2024, surpassing Visa and Mastercard [2] - The stablecoin industry is undergoing a structural shift from being "Web3 native" to being dominated by "Web2 giants," reshaping the entire payment market landscape [2] - Mastercard is actively participating in building infrastructure rather than just collaborating with crypto companies, co-developing compliant on-chain card purchase processes with Chainlink, Zerohash, and Swapper [2] - By integrating stablecoins like FIUSD into its global payment network, Mastercard is addressing the conversion pain points between fiat and on-chain assets, enhancing user experience and capital efficiency [2] - Mastercard's support for merchants to choose stablecoins as settlement currencies breaks the long-standing fiat payment monopoly, significantly optimizing cross-border settlement experiences [2] - Companies like JD.com, Ant Group, and Fiserv are not just using existing stablecoins but are applying for regulatory licenses to create their own stablecoins for core business services [2] - Fiserv's FIUSD is designed for financial institutions and merchants, aligning with the current demand for "programmable dollars," while JD.com aims to reduce cross-border logistics payment costs by 90% [2] - Monitoring whether these companies can shift their revenue structure from "platform fees" to "settlement fees" and "clearing service fees" is crucial, as this may represent new profit growth points [2] Group 3: Regulatory Developments and Market Implications - The U.S. GENIUS Act, the EU's MiCA, and regulatory sandboxes in Singapore and Hong Kong have opened compliance pathways for stablecoin issuance, making "licenses" a scarce financial resource for the next phase [3] - Meta plans to integrate stablecoins into WhatsApp and Instagram, enabling "chat-to-transfer" functionalities, while eight major banks in South Korea have formed a stablecoin alliance to provide lower-threshold international financial services for SMEs [3] - These cases indicate a trend where stablecoins are becoming the preferred pathway for Web2 products to enter the Web3 space, serving as the most compliant and lowest user-threshold "on-chain entry" [3] Group 4: Investment Opportunities in Traditional Financial Institutions - Guotai Junan Securities (Hong Kong) partnered with HashKey to issue tokenized securities "GF Token," creating a fusion path between digital assets and traditional securities [4] - The Hong Kong stock market has formed a closed-loop cooperation between "compliant brokerages" and "on-chain issuance platforms," indicating that the traditional financial system is opening interfaces to the virtual asset system [4] - Chinese brokerages with first-mover advantages are expected to receive structural valuation reassessment opportunities, with virtual asset-related revenues (custody, trading, issuance) likely becoming new profit sources [4] - The combination of fundamental turning points and increased policy support is expected to drive Chinese brokerages from "cyclical valuation recovery" to "structural profit improvement," leading to a more sustained performance-driven market [4]

Core Insights - The GENIUS Act, which aims to establish a regulatory framework for stablecoins, has passed the Senate with a vote of 68-30 and is expected to move to the House for further consideration, with a high likelihood of being signed into law by President Trump if approved [1][8] - Stablecoins are designed to maintain a stable value by pegging to existing assets, contrasting with the volatility of traditional cryptocurrencies [3][5] - The legislation removes oversight of stablecoins from the SEC, categorizing them as non-securities and placing regulatory authority under the U.S. Treasury, which is expected to enhance transparency and compliance in the industry [6][9] Industry Implications - The GENIUS Act opens new opportunities for financial institutions and public companies to leverage stablecoins for faster and cheaper transactions, potentially disrupting traditional payment systems like credit cards [2][10] - The bill includes provisions for federal and state-qualified issuers, requiring full backing of stablecoins with liquid assets and adherence to KYC and AML regulations [9] Company Developments - Fiserv has announced plans to launch its own stablecoin, FIUSD, by the end of 2025, aimed at streamlining transactions for its banking and retail clients, which will enhance operational efficiency and reduce transaction costs [11][12] - PayPal has positioned itself as a first mover in the stablecoin market with the launch of PYUSD in 2023, which is backed by low-risk liquid assets and focuses on high-friction transactions like cross-border transfers [13][15] - Walmart is exploring the potential benefits of issuing a stablecoin, which could reduce transaction fees, improve liquidity, and enhance customer loyalty through new rewards programs [16][22]

Investment Rating - The report does not explicitly state an investment rating for Yeahka (9923 HK) Core Insights - Stablecoins are reshaping the global cross-border payment landscape with advantages such as short settlement times, low costs, and resistance to exchange rate fluctuations, making them ideal for various payment scenarios [2][10] - Yeahka has expanded internationally since 2021, obtaining payment licenses in Singapore and the U.S., and launched its cross-border payment brand YeahPay in 2023, achieving an overseas transaction volume of over 1.1 billion RMB in 2024, a nearly 5-fold year-on-year increase [11][12] - The traditional cross-border payment model incurs fees of approximately 3-8% for merchants, while third-party payment platforms like Yeahka generate revenue through diverse models including transaction fees, currency conversion fees, and interest income from deposited funds [12][10] Summary by Sections Section: Stablecoins in Cross-Border Payments - Stablecoins enable peer-to-peer real-time settlement through distributed ledger technology, reducing transaction costs and compressing settlement times to minutes compared to the traditional banking system which relies on the SWIFT network [2][10] Section: Yeahka's Overseas Expansion - Yeahka has successfully launched its cross-border payment brand YeahPay and signed a global strategic cooperation memorandum with Alipay International, marking significant growth in its overseas business [11][12] Section: Existing Payment Industry Model - The revenue model for third-party payment platforms includes transaction fees, currency conversion fees, interest income from overseas payments, and technology output, showcasing a diverse approach to profitability [12][10] Section: Future Business Models for Third-Party Payment Providers - Stablecoins present new business opportunities for acquirers, allowing them to expand into overseas markets and diversify payment scenarios, such as providing one-stop services for merchants [13][14]

Mastercard said it was expanding its relationship with Fiserv to promote the financial tech company's planned stablecoin, FIUSD. https://t.co/b9uYWggCsC ...

Group 1 - Circle's stock price fell by 15% due to increased competition risks in the digital token space, after a significant rise driven by optimism around stablecoin regulation and adoption [1] - The US Senate passed the GENIUS Act, which aims to establish a federal framework for digital tokens backed by assets like the US dollar, contributing to Circle's previous stock surge [1] - Analyst Ed Engel expects Circle to continue benefiting from stablecoin adoption in the short term, but warns that regulatory clarity from the GENIUS Act could intensify competition and pressure Circle's market share by 2025 [1] Group 2 - Circle's primary revenue source is "reserve income," which is interest earned from assets backing its USDC stablecoin, largely from short-term US Treasury securities [2] - Distribution will play a crucial role in future market share growth, especially as more regulated companies launch their own stablecoins; Circle has paid about 60% of its reserve income to distribution partners like Coinbase and Binance [2] - Financial technology company Fiserv plans to launch a digital asset platform, including a new stablecoin FIUSD, leveraging Circle's existing infrastructure, which is seen as a positive development for Circle [2]