The stablecoin sector is heating up in a big way as the US government turns to stablecoins and tokenization to alleviate US debt and modernize banking.
Bastion, a stablecoin infrastructure provider, just raised $14.6 million in a round backed by tech and crypto heavyweights, including Coinbase, Samsung, and Sony.
The startup allows businesses to issue their own stablecoins without the know-how, providing regulatory assurances and programmability. Could Hedera’s Stablecoin Studio be at risk?
Founded by former Meta and a16z executive Nassim Eddequiouaq, the founder previously worked on Meta’s Libra stablecoin project.
For Bastion, digital currencies go beyond issuance as the platform introduces wallets for users and global cash off-ramps in over 70+ countries, bringing together an all-in-one solution for firms that want to integrate stablecoins into their business strategies or to simply create their own.
Funding comes as stablecoin adoption enters the mainstream, with former US crypto advisor Bo Hines becoming CEO of Tether’s USAT token to take advantage of the US’s new regulatory freedoms.
Tech giants like Apple, Airbnb, and Google have reportedly explored stablecoin integrations for payments, with Google in the midst of testing stablecoin-enabled transactions. PayPal’s PYUSD stablecoin, now issued on Stellar, is set to gain volume.
Against this backdrop is the Hedera Stablecoin Studio, a toolkit to help businesses and institutions issue and manage their own stablecoins via the Hedera network.
Hedera has positioned itself as a leading enterprise-grade distributed ledger, with stablecoin infrastructure as one of its core offerings.
The Stablecoin Studio gives businesses an easy way to create digital currencies backed by fiat or alternative assets. Combined with Hedera’s carbon-negative network, fixed low fees, and fast settlement, the Studio is attractive for companies looking to issue their own tokens.
Most recently, the Australian Digital Dollar (AUDD) stablecoin from Novatti and AUDC was created using Hedera’s Stablecoin Studio, marking the first commercial implementation. The token has also been listed on Coinbase as part of a strategic partnership.
The integration of real-world assets (RWAs) and the growth of DeFi on Hedera also provide fertile ground for stablecoin adoption. Businesses issuing stablecoins on Hedera can connect to a broader ecosystem of tokenization, lending, and payments, but is it enough to stay ahead of competition from Bastion or Circle, issuers of USDC, who will launch the Circle Payment Network soon.
One of Bastion’s advantages is accessibility and being able to easily handle regulatory complexities, lowering the barrier for businesses to issue stablecoins quickly.
Instead of dealing with DLT infrastructures, which may be technologically better suited for use cases in general, companies may just go directly to a web2-like company with trusted investors such as Sony and Google.
Its global off-ramp support in 70+ countries is compelling as it addresses one of the toughest points in stablecoin adoption, which includes converting between fiat and stablecoins seamlessly and regulatory barriers.
Unlike Hedera, which still requires companies to build within its ecosystem, Bastion’s white-label model is designed to meet businesses at a level that can exclude Bastion altogether. If widely adopted, it could make Hedera’s Stablecoin Studio seem far too dependent on noted integrations within the Hedera network.
To maintain a competitive edge, Hedera may need to lock in on various points, including:
If Hedera can position the Stablecoin Studio not just as a tool for issuing digital money but as a plug-and-play platform for stablecoin creation, it could pull Bastion’s competition out of the way.
The post Can Hedera Stay Ahead of Bastion in the Stablecoin Race? first appeared on AllinCrypto.
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