Clarity Act Failure an Opportunity? Circle's Conviction, Stablecoin's Future | Kim Dong-hwan, Seo Dong-ju, Cho Dong-hyun, Undefined Labs CEO [Crypto PLUS]

Summary

Cho Dong-hyun, CEO of Undefined Labs, discusses the rapid growth of the stablecoin market, now at $300B, with high velocity (122x per year) used for both payments and investment. He explains the on-chain finance ecosystem centered on Sky (formerly MakerDAO) lending USDC to platforms like Spark and Groove, which invest in RWA assets. He also analyzes Circle's earnings, noting that while net income dropped due to tax and compensation costs, key metrics like margin improvement from non-interest income (CPN, tokenized MMFs, and the Arc Network) are improving. He advises buying Circle if the Clarity Act fails, causing a price drop, as he believes the stablecoin market's long-term upside is enormous.

• Stablecoin market has grown to $300B with high velocity of 122x per year.
• 50% of stablecoin activity is for payments, 50% for investment.
• Sky (formerly MakerDAO) collects USDC deposits and lends to Spark, Groove, and other fintechs investing in RWA.
• Circle's net income fell 50% due to tax, expenses, and stock compensation, but non-interest income is growing.
• Circle's non-interest income includes CPN network fees, tokenized MMFs, and the new Arc Network.
• Cho suggests buying Circle if the Clarity Act fails, causing a price drop.
• He believes stablecoins are the future, similar to the early days of electric vehicles.
• Global asset managers are increasingly tokenizing funds for on-chain distribution.