Stablecoin Full Stack
Nags@nagavaishak
−1.6%
since Oct 6
The idea
I believe dollars are shifting out of bank accounts into stablecoins, and issuers keep the float yield that used to go to savers, making this one of the most profitable corners of finance. This basket owns the full stack: the issuers capturing the float, the distributors taking a cut, the payment rails wiring stablecoins into everyday spending, the custodians holding reserves, and companies serving the regions where dollar-stablecoin demand runs hottest outside the US.
What it owns
- Stablecoin issuers that invest reserve assets and retain the yield, benefiting directly from growth in circulation. · Circle Internet GroupIssues USDC, invests reserves in Treasuries, and retains most of the interest earned, profiting as circulation grows., PayPal HoldingsIssues its own stablecoin and can distribute it to millions of existing merchants and consumers, earning yield on reserve assets., Robinhood MarketsParticipates in the Global Dollar consortium and shares in yield on stablecoin reserves held by its users.23%
- Exchanges and platforms that earn a share of stablecoin float without issuing it, collecting fees as users hold balances on their systems. · Coinbase GlobalEarns roughly half the interest on USDC reserves through its deal with Circle, capturing distribution fees without issuing stablecoins., Galaxy DigitalActs as market maker and dealer in stablecoin transactions, earning from spreads and volume regardless of which issuer prevails., Gemini Space StationExchange that promotes its own stablecoin and earns yield on dollar balances users hold on its platform.19%
- Networks that settle stablecoin transactions and determine how large the float can grow by connecting coins to everyday commerce. · VisaPiloting stablecoin settlement into its network so transactions route through its rails and generate fees rather than bypass them., MastercardBuilding stablecoin acceptance into its payment network to capture transaction fees as dollars migrate onto blockchain rails., BlockOperates merchant and consumer payment networks through Square and Cash App, the ground-level channels for stablecoin commerce.19%
- Platforms in emerging markets where users actively seek dollar stablecoins to escape weak local currencies, driving deposit growth. · MercadoLibreOperates a fintech platform in Latin America where demand for dollar stablecoins is strongest as users seek currency alternatives., Nu HoldingsDigital bank with millions of users in Brazil and Mexico where dollar-denominated balances and stablecoins face strong demand., DLocalHandles cross-border payments in emerging markets where stablecoins reduce costs and settlement time compared to traditional rails.17%
- Custodians and asset managers that hold stablecoin reserves and charge fees on the deposits backing the entire system. · BlackRockManages reserve funds for stablecoin issuers and earns custody fees regardless of which issuer or coin ultimately dominates., State StreetCustodies reserves for stablecoin issuers and collects fees on the dollars that must be held safely across the ecosystem.12%
- Cash10%