“It’s important that instruments be surfaced that allow folks to ride the upside of stablecoins in a responsible as well as thoughtful way.” – 03:37
Haonan Li, CEO & Founder of Codex, joins Remy Blaire at the New York Stock Exchange to discuss the Genius Act, which marks a significant advancement in the financial landscape by ensuring that stablecoins are fully backed by banks, allowing for one-to-one redemption for US dollars. This legislative change is projected to introduce up to $1.75 trillion in new digital dollars into circulation over the next few years, potentially reshaping the global economy and international trade.
Haonan emphasizes that the regulatory developments in the U.S. serve as a credentializing moment for stablecoins, acting as a catalyst for growth not only in the U.S. but also in regions like Southeast Asia. He notes that other countries, including China, are looking to the Genius Act as a model for their own regulations, highlighting a shift in global financial leadership towards the United States.
The discussion shifts to the recent public listing of Circle at the New York Stock Exchange, where there has been a surge of interest from financial institutions and retailers in launching their own stablecoins. Haonan suggests that while the market is currently bustling with activity, the long-term outlook indicates a consolidation into a few stablecoin chains rather than a proliferation of many. This consolidation could provide significant economic advantages for companies that adopt stablecoins.
Remy and Haonan also explore the investment landscape surrounding stablecoins, with Haonan noting a strong demand for stablecoin exposure, particularly in private markets dominated by venture capitalists and sophisticated investors. He stresses the importance of developing instruments that allow a wider audience to engage with stablecoins in a responsible manner.