Polygon executives: Stablecoins will enter the "hundred thousand issuers era," and banks will be forced to restructure their capital models.

Odaily News Polygon's Global Head of Payments and RWA Aishwary Gupta believes that global stablecoins are entering a “Supercycle,” with the number of stablecoin issuers likely to exceed 100,000 in the next five years. Gupta pointed out that Japan is participating in government bonds and policy stimulus trials through stablecoins like JPYC, proving that stablecoins can become tools of national economic sovereignty rather than undermining the power of Central Banks. He stated that stablecoins, like fiat, are influenced by monetary policy, essentially enhancing the global demand for a country's currency, much like how stablecoins increase the usage of the US dollar. Gupta also warned that stablecoin yields are attracting low-interest deposits (CASA) from the banking system to flow on-chain, weakening banks' ability to create credit and maintain low-cost capital. To respond to competition, he expects banks to issue “deposit tokens” on a large scale to keep funds on their balance sheets while allowing customers to use assets on-chain. He believes that as the number of stablecoins rapidly expands, future payment systems will rely on a unified settlement layer, allowing users to pay with any token, while merchants receive payments in another token, with the underlying conversion completed seamlessly in the background. (The Fintech Times)