Among interested firms, Kunkel bet 1,000 of them would debut a stablecoin within the following year that stablecoin legislation is passed. In lieu of adopting an existing stablecoin like Circle’s USDC, however, Kunkel said firms will be incentivized to release their own equivalent.
“They would love their users to use their own branded stablecoin because they can make the yield on the underlying reserves,” he explained. “They may even be white-labeled.”
As an example of a white-labeled stablecoin, Kunkel pointed to Paxos. The company once issued a Binance-branded stablecoin called BUSD, while playing a central role in PayPal’s stablecoin foray as the issuer of PayPal USD (PYUSD).