China Gold Research Report: Stablecoins are unlikely to impact domestic third-party payments, and Internet giants have a clear advantage in layout.

[Blockworld] On July 15, news reported by CICC stated that we believe the popularity of stablecoins has a limited impact on existing businesses like WeChat Pay. The essence of domestic third-party payment is a "quasi-stablecoin" mechanism pegged to the RMB, relying on legal reserves to ensure currency value stability, and domestic fees are as low as a few thousandths, far better than overseas platforms' percentages. Therefore, we believe that under the current efficient and low-cost mature third-party payment system, the necessity for independent blockchain stablecoins to proliferate domestically is not high, thus the impact on existing businesses is limited. On the other hand, internet companies related to cross-border payments are more actively laying out in the stablecoin field. We believe that internet companies have advantages in stablecoin deployment: 1) User scenarios: Certain e-commerce platforms have hundreds of millions of users and mature payment scenarios (such as cross-border e-commerce), which can quickly promote stablecoin applications; 2) Technical capability: Internet companies have the capability for technology research and development; 3) Ecological synergy: The B-end (Supply Chain) + C-end (retail payment) closed loop can strengthen the network effect of stablecoins.