CoinShares: Stablecoins Now Core Infrastructure, Not Just Crypto Trading

A core theme of the discussion was shifting focus outward. Crypto projects have largely exhausted growth among native users cycling assets internally, Young said. Future expansion requires meeting people on familiar ground, whether through user-friendly apps, backend infrastructure for major platforms, or integrations that hide blockchain complexity. Yield-bearing dollars appeal universally, attracting retail DeFi participants, institutional traders using them as collateral, and traditional asset managers seeking diversification. Their returns can move inversely to conventional interest rates, offering portfolio hedging potential during easing cycles, Young added.

On regulation, Young noted the fragmented global landscape, with differing U.S. and European approaches. Ethena adapts by keeping its core synthetic product for offshore markets while introducing compliant versions, such as USDtb, tailored to frameworks like the U.S. GENIUS Act. He argued that serving international dollar needs, where local financial rails are weaker, offers greater opportunity than competing head-on in the well-served U.S. market.

Young envisions stablecoins expanding dramatically, potentially reaching multi-trillion-dollar scale within years, with yield-focused variants claiming a larger share. He cautioned against overemphasizing short-term token buybacks for early-stage projects, prioritizing reinvestment for long-term growth instead. The market, he predicted, will consolidate among a few dominant neutral issuers rather than fragment into many niche players, though custom solutions will proliferate in closed ecosystems.