Polygon executive: Stablecoins will enter the "era of 100,000 issuers," forcing banks to restructure their capital models.

According to Odaily Planet Daily, Aishwary Gupta, Global Head of Payments and RWA at Polygon, believes that global stablecoins are entering a "supercycle," and the number of stablecoin issuers could exceed 100,000 within the next five years.

Gupta points out that Japan's participation in government bond and policy stimulus pilot programs through stablecoins like JPYC demonstrates that stablecoins can serve as a tool of national economic sovereignty, rather than weakening central bank power. He states that stablecoins, like fiat currencies, are subject to monetary policy influences and essentially enhance global demand for a country's currency, just as stablecoins have boosted the use of the US dollar.

Gupta also warned that stablecoin yields are attracting low-interest deposits (CASAs) from the banking system to the blockchain, weakening banks' ability to create credit and maintain low-cost capital. To counter this competition, he anticipates banks will issue "deposit tokens" on a large scale to keep funds on their balance sheets while allowing customers to use assets on-chain.

He believes that as the number of stablecoins rapidly expands, the future payment system will rely on a unified settlement layer, allowing users to pay with any token and merchants to receive payments with another token, with the underlying conversion completed seamlessly in the background.

(The Fintech Times)