Opinion: PayPal and large banks are rushing into the stablecoin market, and Tether and Circle's business models are facing challenges

Odaily News PitchBook analyst Robert Le pointed out that as PayPal and large banks enter the stablecoin market, the business models of Tether and Circle are at risk. Although Tether and Circle currently occupy 90% of the stablecoin market, Le believes that this dominance will be weakened by increased competition. PayPal's PYUSD has a market value of US$700 million since its launch in 2023, and traditional financial institutions such as Bank of America are also waiting for clear regulation to issue stablecoins. Le predicts that once the stablecoin bill is passed, hundreds or even thousands of stablecoins will emerge in the market, and Tether and Circle's market share will be squeezed.