Arthur Hayes: The key to the success of stablecoins lies in the distribution channels

ChainCatcher news, BitMEX co-founder Arthur Hayes recently published an in-depth analysis of the stablecoin market landscape. The article points out that the key to the success of stablecoins lies in their distribution channels, which are currently mainly achieved through cryptocurrency exchanges, social media platforms, or traditional banks. Tether has become the dominant stablecoin globally, particularly in the Global South market, thanks to its partnership with Bitfinex and the trust established in the Greater China region; while Circle distributes USDC through its partnership with Coinbase, its market share still lags behind Tether.

Hayes warns investors that new entrants face severe challenges with closed distribution channels and predicts that as Circle's IPO succeeds, the stablecoin bubble will continue to expand, but will eventually burst on some project that separates "dumb money." He emphasizes that although stablecoin issuers are highly profitable (mainly from treasury yields), investors should be wary of overvaluation risks, especially for those projects that claim to collaborate with traditional banks but lack actual distribution channels.