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GM. This is Milk Road, the daily crypto newsletter delivering “aha” moments on repeat. |
Here’s what we’ve got for you today: |
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Pharos is an institution-grade layer 1 (L1) designed specifically to bridge real-world assets onchain. Join the Pharos community (X & Discord) here. |
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AMERICA'S NEWEST EXPORT: STABLECOINS 💵 |
I feel like every newcomer to crypto has the same approach to stablecoins in the beginning… |
"Oh, dollars onchain. Cool. Useful for parking cash between trades." |
(I was the same.) |
But after a while, most folks tend to figure out that stables are doing a lot more than just holding the door for the next BTC dip. |
This past Monday, a16z crypto dropped a new report covering how the rest of the world is now coming to that same realization. |
The big idea: stablecoins are giving rise to a new version of "banking-as-a-service." |
And the incumbents can already see it coming: |
Stripe bought stablecoin platform Bridge for $1.1B (its biggest acquisition ever), plus wallet provider Privy. And Mastercard bought stablecoin infrastructure shop BVNK. 👇
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From where we are as of right now? |
It’s looking like there’re three core categories emerging: |
1. General-purpose chains. Ethereum, Solana, the major L2s. Home of trading, lending, DeFi. |
2. Payments-specific chains. Stripe's Tempo and Circle's Arc. Built for predictable transaction costs (essential when you're processing millions of payments). |
3. Institutional networks. Things like Canton, designed for regulated banks and asset managers that need privacy plus compliance. |
And with this progress comes massive global unlocks… |
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| This is one of the biggest narratives in crypto right now: | “Real World Asset (RWA) tokenization is one of blockchain’s biggest use cases.” | But here’s the catch: | Very few blockchains are actually built for RWAs. | One of the few is Pharos. | Unlike general-purpose chains, Pharos is an institution-grade layer 1 (L1) designed specifically to bridge real-world assets onchain. | Here’s what stands out: | | This is not just another L1. It’s built specifically for RWAs. | Join the Pharos community (X & Discord) here. |
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AMERICA'S NEWEST EXPORT: STABLECOINS (P2) 💵 |
Picture a… |
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They can now hold, transact, and save in dollars - all without ever touching a U.S. bank or a correspondent banking relationship. |
For those stuck with weak local currencies and wobbly banking systems, that can be life-changing. |
… and once those people have a dollar balance onchain, they’ll likely want access to borrowing, lending, and yield products… |
That’s right - we’re talking onchain credit baaaby! |
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Here's a quick parallel to make sure the weight of onchain credit really lands for you… |
After 2008, banks pulled way back from certain types of lending - and private credit funds (basically non-bank lenders) stepped in to fill the gap. |
That market grew from a niche corner into a multi-trillion-dollar industry that now goes toe-to-toe with traditional bank lending. |
Onchain credit is shaping up to run the same playbook - but with open, programmable rails underneath it. |
(Huge!) |
And then, of course, there’s the geopolitical layer… |
For the past - what, eighty years? - the U.S. has "exported" the dollar through institutions like the IMF and World Bank, plus the correspondent banking system that quietly funnels global trade through American banks. |
But that dominance has been slipping… |
BRICS countries are pushing alternatives, China keeps nudging the yuan, and the dollar's share of global reserves has been ticking down. 👇 |
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Stablecoins give the U.S. dollar a fresh demand driver - where, instead of pushing dollars to countries, you push them directly to people. |
Every stablecoin wallet becomes a node in the dollar network. The GENIUS Act (which Congress passed last year) was the U.S. planting its flag on this bet. |
Point being: stablecoins are quietly becoming the plumbing for the global financial system. |
The infrastructure being built here is going to touch payments, credit, FX, savings, and investing across every market that matters. |
Meaning the whole "stables are just for parking cash between trades" framing is about to feel reeeal dated, reeeal fast. |
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BITE-SIZED COOKIES FOR THE ROAD 🍪 |
The entire industry is headed to Miami. Get 20% off Consensus Miami passes with code MILKROAD.* |
Room to grow: Tokenized treasuries just crossed $15B. Real treasuries sit at $30T+. That's a 2,000x gap in a single asset class. |
Mike Dudas: "Agents aren't going to be able to transact on rails that were programmed 60 years ago." |
Woah, ok: Microsoft just tore up their exclusive deal with OpenAI. |
Miami is the place to be. Bitwave is hosting an event during Consensus Miami on May 5th. Register here.** |
*this is sponsored content.
**this is partner content. |
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Join the Pharos community (X & Discord) here. |
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