Arthur Hayes: "The Key to Stablecoin Success is the Distribution Channel"

Arthur Hayes (Arthur Hayes), founder of BitMEX (BitMEX), expressed the view that distribution channels are crucial in the stablecoin (virtual assets pegged to fiat currency) business.

On the 17th (KST), Hayes stated on his blog, "The essence of stablecoins lies in how they are distributed," adding, "No matter how good a stablecoin is, it will become obsolete without distribution channels." Hayes highlighted that, for stablecoins to succeed, at least one distribution channel is essential, such as a virtual asset (cryptocurrency) exchange, a Web2 social media (SNS) platform, or a traditional financial institution.

Hayes cited Tether (USDT) as a successful example of a stablecoin powered by distribution channels. He explained, "In the past, virtual asset traders in China and Hong Kong faced instability of local currencies and the threat of bank account closures," and "In such situations, they chose Tether as a means to securely store and transfer dollars, which led to Tether's rapid growth." He continued, "Along the way, Tether was combined with the crypto exchange Bitfinex, so it naturally had a distribution network from the beginning."

Hayes also said that the reason USDC, despite its superior technology, cannot catch up to Tether is because of a lack of distribution network. He noted, "Circle (the USDC issuer) operates USDC based in the US and complies with regulations, but has yet to secure networks in China and other countries," adding, "Jeremy Allaire, CEO of Circle, essentially surrendered to adapt to the US political system."

Meanwhile, as of 10:34 AM today, according to CoinMarketCap, the market cap difference between Tether and USDC is about $94 billion.