The new report analyzes five Stablecoin Payment Networks to determine your ability to overcome new challenges. In general, tether- and circle-centric projects self-select for different clusters of common characteristics.
Foresight Ventures also shared some exclusive commentary on the subject with Beincrypto. See the company’s report for more specific data for each project.
New Stablecoin Report
The Stablecoin market is growing to new heights, with many industry leaders predicting much greater results in the near future.
In this context, Foresight Ventures has released a report on the potential of Stablecoins, claiming it could become the “backbone of the global payments railway.”
According to the report, two main factors have converged to boost the Stablecoin market. Web3 companies are trying to integrate with TRADFI to seize an influx of companies, while financial institutions are considering blockchain for new features and use cases.
Therefore, the market is lifting these tokens from both directions.
Still, the report reveals that not all steel coins are created equally. The technology has reached certain practical limits under massive new stress testing, and developers are finding different ways to innovate.
Alice Li, investment partner at Foresight Ventures, exclusively shared some insights with Beincrypto.
“The market recognizes that general purpose blockchains may not be optimal for certain use cases. What makes this space particularly interesting is that different projects approach the same problem from different angles.
The difference between USDT and USDC approaches
Some of these flaws, such as inconsistent gas prices and slow transaction times, are concentrated in general purpose blockchains, particularly Ethereum. A Foresight report explored five new Stablecoin projects. Plasma, stability, codex, noble, 1 money has been decided to succeed and fail.
Without getting too lost in Minutiae, this report details interesting and general trends in Stablecoins. Essentially, regardless of the L1 blockchain infrastructure, users use one of the main existing tokens.
Therefore, these companies need to accommodate assets such as USDT and USDC, and most exhibit strong preferences.
The tether-focused network focuses on the homeland’s economic infrastructure, targeting retail users, while circle-based projects prioritize institutional capital and regulatory compliance.
1Money, which doesn’t suit any of these models, strives to recruit companies beyond USDC-oriented projects.
The report comprehensively evaluates all five of these five stubcoin payment layers, with interested readers looking into the raw data themselves.
For now, it’s hard to say which of these projects will be the longest, but there are a wide variety between them.
The post where Stablecoins is building a new payment rail for traditional finance first appeared on Beincrypto.
