With the gradual formation and openness of the legal framework, as well as the high likelihood of support from the US Government for crypto development, the RWA sector has great potential to grow this season.

Regarding tradfi, there are clear products like Stablecoin and Payment that are very close to what individuals can use immediately.

- Currently, there are 3 types of stablecoins: Crypto Native, Fully-Banked, and Under-Banked: Crypto Native is understood as stablecoin money within crypto, Fully-Banked is USD circulating in countries & organizations using it, while Under-Banked is fiat currency in secondary areas (I will talk about this later).

- Generally, we tend to focus on stablecoins, which are the crypto native type; this type currently has about $200B, of which over $12B are algorithmic stablecoins and crypto-backed stablecoins.

- The top among crypto-backed and algorithmic stablecoins is $USDe of $ENA with $4.76B, which accounts for nearly 5% of total stablecoins.

- In the fiat-backed segment, there is a rising project called @usualmoney with the $USD0 coin having a Mcap of $522M, close to the $550M of $BUIDL (the stablecoin of Black Rock). It can be said that $USUAL is also an RWA project about USD that is very easy to visualize.

- This Stablecoin sector could bring trillions to the crypto market; why?

- If you look below, the Total Mcap of Crypto is around nearly $3T, but the current amount of stablecoins is only about $200B.

- The money in the Fully-Banked market exceeds $400T; if this money flows into or only circulates through crypto, it will be very significant.

- In Under-banked markets, people have to use stablecoins like $USDT a lot to access crypto or FX,...

- Payments using crypto represent a step forward compared to traditional payments. Traditional payments require many steps and organizations as shown below, resulting in significant costs and time delays.

- Because using stablecoins for payments is much faster and cheaper; you just need to use money to buy stable, load it into a wallet => send and cash out using Paypal or Apple Pay,...

- There is no longer any fanciful talk; many major payment organizations like Swift, Amazon, Paypal,... have adopted stablecoins into their practices, and I believe there will be many more in the future.

- JPMorgan Chase has developed JPM Coin on its Quorum blockchain; as of October 2023, JPM Coin is used for about $1 billion in transactions each day.

- Visa has become the first payment network to process transactions using USDC since 2021.

*Conclusion

- The RWA sector, in addition to Treasury T-Bills and Private Credit, also includes Stablecoin and Payment, which are very noteworthy.

- The payment sector has strong growth opportunities; projects like $SAFE, $ACH, and notable players like @Stablecoin, @brale_xyz,... you should pay attention.

- Some other stablecoin projects worth noting include ENA and USUAL.

#Steven_Research #BSCOnTheRise