Bank of America: Subversive application of stablecoins in cross-border P2P payments, annualized or generating up to 75 billion US bond demand

Bank of America's latest research report provides an in-depth analysis of the potential transformative power of stablecoins in the financial system, pointing out that although this digital asset is facing regulatory disputes, it has shown unique advantages in cross-border transactions, retail settlements and other fields. The research report makes it clear that cross-border peer-to-peer (P2P) payments are the most disruptive application scenario of stablecoins - compared with traditional banking systems, its settlement efficiency and cost advantages are significant, or it may become an important channel for capital flows in emerging markets. It is worth noting that Shopify's move to allow merchants to accept USDC stablecoins has been regarded as a landmark event of retail penetration. The recent completion of repurchase transactions on the chain of UST tokenized bonds highlights the recognition of institutional investors for the settlement function of stablecoins. In terms of market demand, Bank of America estimates that the potential demand for stablecoins for US Treasury bonds in the next 12 months will reach 25 billion to 75 billion US dollars, but it will not be enough to reverse the supply and demand pattern of the Treasury market in the short term.