What Use Is Stable Coin

When discussing the utility of stablecoins, points such as good use by foreigners, no credit card company fees, and no currency exchange fees are usually mentioned.

However, with that level of utility, there is bound to be a limit to growing into a market that is about 10 times larger, such as $2 trillion within a few years, as Bessent said.

The country of the United States certainly has a need for stablecoins. According to the Genius Act, a 1:1 reserve must be secured for all issued stablecoins, since most of the reserve will be short-term U.S. government bonds.

Short-term government bonds currently account for $5 to $6 trillion out of about $27 trillion in US government bonds. If about $2 trillion is added to this, the US government will be able to breathe.

New debt is also a debt, but higher demand can lower procurement rates. So, from the perspective of the United States, stablecoins are needed. But from the user’s point of view?

To understand the utility of stablecoins, you first need to understand the DeFi market a little bit. Take the example of HYPE, which is currently the 11th largest cryptocurrency market cap in the world.

HYPE is a DeFi futures exchange. Simply put, it’s a DeFi version of the Chicago Futures Exchange (CME).

However, there is a difference in that CME trades futures based on crude oil, gold, government bonds, and raw materials, and HYPE trades permanent futures based on cryptocurrency.

HYPE’s market capitalization is currently around 15B dollars, or 21 trillion won in Korean won, and its trading volume reached 330B dollars, or 460 trillion won, in July 2025. This is more than the monthly trading volume of KOSPI.

The curious thing is that HYPE reveals that their team size is only 11.

HYPE was founded by Jeff Yan, a young man around his 30s. He is known to have won an International Physical Olympiad gold medal in high school and majored in mathematics and computer science at Harvard.

He did cryptocurrency market making at a trading company, and based on that experience, he set HYPE with a vision to realize the speed and safety of derivatives trading at the level of centralized exchanges (CEX) on the on-chain. This was about four years ago.

Started with its own funds without external VC investment, the project created HYPE with a dual-structure design called HyperCore, an exchange engine, and HyperEVM, an EVM-compatible smart contract layer.

It was launched in earnest at the end of last year, when 31% of the HYPE Genesis token supply was air-dropped, aggressively growing the market.

HYPE currently accounts for about 70-80% of the DeFi permanent futures market, with 200,000 processing cases per second and trading latency of 0.2 seconds, showing centralized exchange-rate performance.

Their annual profit specified in DefiLlama is $999 billion, or 1.4 trillion won. And since it is a team of only 11 people, net profit is 99% of this. More than 90% of the profits generated in this way are used to repurchase and burn HYPE tokens, and the rest are distributed to HLP Vault participants. This is why more people are forced to gather.

Then, what role does stablecoin play in HYPE’s business model.

First of all, the trading unit of permanent futures traded on HYPE is dollars. Futures require a deposit because they cannot be made into highly volatile cryptocurrencies such as Bitcoin or Ethereum. Stable coins are always needed.

In addition, HYPE receives a transaction fee as a stable coin, which goes into the Assistance Fund and is used for HYPE token redemption and incineration again.

Therefore, HYPE introduced its own stablecoin USDH, and the US short-term government bond reserve interest income generated from this is also returned to the HYPE ecosystem. This is similar to the bank’s business model, which generates profits from the loan-to-deposit margin.

The reality is that stablecoins are generating utility in a wide variety of ways in the DeFi futures market, where more than 400 trillion won is traded a month.

If the real asset token (RWA) market grows and the pie grows beyond U.S. government bonds to real estate, gold, and stocks, the utility of stable coins will inevitably increase.

This, too, is not staying in imagination, but the ecosystem is being created one by one by one by one by smart, brilliant young geniuses like Jeff Yan.

SY Lee, who is of Korean descent, also created an intellectual property-based token project called Story, which is also likely to be a stable coin as a means of paying royalties or copyright fees to creators. SY is also a young talent in his early 30s who graduated from Oxford.

The real world they are talking about is web 2, and the world they created is web 3. Even in web 3, which was a bit of a science fiction word, things that make real money keep rolling.

Of course, there will be noise due to various incidents and accidents in the middle, but I think this market will ultimately become an upward-looking market as the U.S. government has stepped up.

So, personally, I think it’s important to introduce the won stablecoins first, whether it’s money or not. At least I’ll buy the National Museum’s Kedeheon doll with this.