VanEck CEO Predicts That New Multi-purpose Applications Will Surpass Conventional Payment Methods
In the ever-evolving world of finance, stablecoins and fintech apps are making significant strides, poised to reshape traditional payment systems over the coming years.
Competition from popular platforms like Robinhood, Kraken, and X is driving the adoption of stablecoins. These apps are increasingly integrating stablecoin technology or offering crypto payment options, enhancing their ecosystems' accessibility and liquidity. This move expands the use cases of stablecoins beyond traditional banking hours, localized currencies, and into cross-border payments and remittances [1][3].
The advantages of stablecoins—cost-effectiveness, speed, and cross-border efficiency—are undeniable. However, barriers to widespread adoption persist, particularly in the realm of regulatory compliance and infrastructure for converting stablecoins to and from traditional fiat currencies [4].
Recently, the GENIUS Act was signed into law in the United States. This legislation establishes a regulatory framework for payment stablecoin issuers, recognising them as legitimate payment mechanisms [5]. The GENIUS Act aims to reduce settlement times and fees, especially in cross-border transactions, by enabling peer-to-peer transfers without intermediaries. The Act imposes compliance requirements on stablecoin issuers, including transparency, reserve backing, and consumer protections, which could foster trust and stability in the U.S. market [5].
The GENIUS Act could encourage more institutional participation and innovation while ensuring oversight to mitigate risks associated with systemic financial disruption or consumer harm [5]. Van Eck, a prominent investment firm, anticipates more firms will enter the market due to the new regulated frameworks like the GENIUS Act, which lower uncertainty [6].
Circle, a leading player in the stablecoin market, has seen strong growth since going public [7]. The regulation in the GENIUS Act may initially slow some newcomers, but it also brings clarity, encouraging more businesses to enter the market [8]. Van Eck believes platforms such as X, Kraken, and Robinhood could become major players by turning into so-called super apps that support payments, trading, and more within a single interface [9].
Investors are showing interest, with stocks moving as anticipation builds around the effects of cutting out middlemen and fees, which could lower costs and open the door to more competitors [2]. Ethereum, a leading cryptocurrency, has had a solid run in the last month [10].
As the stablecoin market evolves in tandem with fintech apps and regulatory frameworks, traditional payment systems may face a significant transformation in the near future.
Businesses and financial institutions are increasingly integrating stablecoin technology into their fintech apps, such as Robinhood, Kraken, and X, to enhance accessibility and liquidity. This integration could potentially shift the landscape of global business and finance by enabling cross-border payments and remittances, improving efficiency and reducing costs.
