Stableecoins are ready to reshape the global financial system, where the investment banking company William Blair calls them a “larger technology upgrade” over the traditional rails that have long supported cross -border money movement.
The Chicago, Illinois-based banking company claimed that stablecoins will not only replace older infrastructure for business-to-business transactions, but will also have traction in some areas of consumer trade in the report published on Tuesday.
Unlike Fiat-based cross-border payments that William Blair characterized as “slow, expensive and fragmented”, Stableecoin offers important benefits such as 24/7 availability, almost instant settlement, minimal dissemination and elimination of currency risk.
The report emphasized that stableecoin transactions also benefit from immutability, programmable execution and exposure to trusted currencies such as the US dollar.
William Blair believes that global legislative clarity, including measures such as Genius Act, will lay the basis for what it calls a “golden age for stableco -trade.”
The company was quick to note that legislation alone does not run massage. Instead, it pointed to several catalysts, including growing corporate demand, progress in digital infrastructure and traditional economic giants such as MasterCard (MA), Visa (V) and Corpay (CPAY) that build support for stablecoins as necessary steps against wider recording.
While Bullish on the long-term lane warned William Blair that the greatest short-term risk of stablecoin-exposed shares such as Coinbase (Coin) and Circle (CRCL) is the impatience of the market. Investors may be frustrated with the adoption rate.
Despite this, the company encouraged to buy on weakness and confirmed its belief that Circle and Coinbase are “the public cryptic companies of the highest quality.”
Looking ahead, William Blair predicts that the market will consolidate about a few dominant payment tokens, as liquidity requires and network compatibility strength -konvergence. This prospects supports the company’s optimism on Circle, which issues USDC stableecoin and on coinbase as a key platform for stablecoin activity. Other potential recipients include Visa, Mastercard and Corpay, with Block (XYZ) and Fiserv (FI) that also see some upside.
But for traditional correspondent banks, the future looks more uncertain. The analysts warned that even if these institutions integrate stablecoin rails, much of the economic upside is likely to flow to newer participants. In the company’s view, StableCeCoins do not just complement the existing financial system they threaten to replace some of its core components.
Read more: DWS sees stableecoins appear as core payments infrastructure
