Bank of America: Stablecoin's Disruptive Application in Cross-Border P2P Payments Could Generate Up to $75 Billion in Annualized or Trigger High Demand

BlockBeats News, August 20th, according to ChainNews, a latest research report from Bank of America conducted an in-depth analysis of the potential transformative power of stablecoins in the financial system, pointing out that this digital asset, despite facing regulatory controversies, has already demonstrated unique advantages in areas such as cross-border transactions and retail settlements. The report made it clear that peer-to-peer (P2P) cross-border payments are the most disruptive application scenario for stablecoins—compared to the traditional banking system, its settlement efficiency and cost advantages are significant, making it a key channel for fund flows in emerging markets.

Of note, Shopify's move to allow merchants to accept USDC stablecoin has been seen as a landmark event for retail penetration, and more recently, the on-chain completion of USTs tokenized bond repurchase transactions has further highlighted institutional investors' recognition of the stablecoin's settlement function. In terms of market demand, Bank of America estimates that the potential demand for stablecoins for US Treasuries in the next 12 months could reach $25 to $75 billion, but it is not enough to reverse the supply-demand imbalance in the Treasury market in the short term.

What is more worth noting is its impact on the Money Market Fund (MMF): some MMF clients have explicitly stated that they will accelerate the tokenization process and provide real-time interest payments through on-chain systems to cope with competitive pressure. Taking Circle (CRCL.US)-issued stablecoin as an example, the Coinbase (COIN.US) platform has indirectly circumvented the "Groundbreaking Enabling the Next-Generation Internet of Upgrades and Systems" (GENIUS) Act's ban on interest payments through a reward mechanism, reflecting the innovative path in the market to evade regulation.