Stablecoins are Important

Stablecoins provide stability, efficiency, and accessibility within the cryptocurrency ecosystem, enabling both individuals and institutions to participate in digital finance.

Yield-bearing DeFi Stablecoins is a Huge Opportunity

The total market capitalization of stablecoins is worth more than $140 billion by February 2024 and taking up more than 12% of the total cryptocurrency market cap, according to CoinMarketCap. This represents a large total addressable market for our stablecoins--USS and eUSS--to capture as they are poised to meet the diverse needs of users within the digital economy, ensuring accessibility, reliability, and convenience.

Within the addressable market, USS and eUSS's Serviceable Addressable Market is worth more than $5 billion as USS and yUSS captures market share within the DeFi stablecoin space. Additionally, USS's immediate Serviceable Obtainable Market of yield-bearing stablecoins is valued at more than $1 billion and is rapidly expanding.

The Need for Stablecoins

Stablecoins' success represents crucial instruments in the cryptocurrency landscape due to their fundamental characteristics and versatile applications.

Store of Value

While Americans can get access to their $30 trillion T-bill market and rely on the relatively stable banking system, there are more than 500 million people living in countries with 30%+ inflation, being unable to rely on their local currency to store wealth. Stablecoins serve as a wealth-storing alternative that is less susceptible to inflation and currency devaluation, particularly in regions with unstable or volatile fiat currencies. Users can convert their local currency into stablecoins to protect against purchasing power erosion and preserve the value of their savings.

Moreover, stablecoins provide a convenient and accessible way to store wealth within the digital economy. In DeFi applications, stablecoins serve as the primary form of collateral for lending, borrowing, and earning interest. Users can leverage their stablecoin holdings to access liquidity, earn yields, and diversify their investment portfolios while maintaining stability and security.

Medium of Exchange

Stablecoins enable fast and low-cost cross-border transactions compared to traditional banking systems. They offer individuals and businesses a means to send and receive funds globally with minimal fees and without relying on intermediaries like banks.

Additionally, stablecoins facilitate trading in cryptocurrency markets by serving as trading pairs on exchanges. Traders can quickly move funds in and out of volatile cryptocurrencies without the need to convert to fiat currencies, thereby enhancing trading efficiency and liquidity.

Finally, stablecoins offer an alternative medium of exchange for the population that is unbanked or underserved by the traditional banking system. With just a smartphone and internet access, people can access stablecoins, store value, and make transactions without needing a traditional bank account.