Viewpoint: Infrastructure remains the top priority for promoting the development of stablecoins

VCs are targeting several types of stablecoin startups to drive future growth. Infrastructure remains a top priority. Brendan Dickinson, general partner at Canaan Partners (an investor in Paxos), sees great potential in projects that offer compliance tools, fraud prevention, and wealth management services, which can unlock new use cases in B2B payments and underserved markets. Vertical integration is another key area. Will Nuelle, general partner at Galaxy Ventures, said companies with multiple layers of the stablecoin stack, such as issuers that pair blockchain infrastructure with a distribution layer, will lead the market. CoinFund CEO Jake Brukhman echoed that sentiment, highlighting “full stack” projects that combine infrastructure with user-friendly platforms to attract both institutional and retail users. Bridging traditional finance and cryptocurrencies is critical. Viktor Bunin, general partner at Credibly Neutral and protocol expert at Coinbase, stressed the need for startups that enable enterprises to seamlessly integrate stablecoins into existing businesses without having to completely overhaul their systems. Distribution strategies may help identify winners at the application layer. VanEck Ventures’ Lopez believes that infrastructure will begin to commoditize, and startups with unique go-to-market strategies will stand out. Nascent’s Elitzer agrees, pointing to the relatively low adoption of PayPal’s PYUSD stablecoin as a sign that short-term incentives can fail without a compelling long-term strategy. Lopez added that the stablecoin industry is still in its infancy and predicted that major developer and consumer platforms will enter the industry as stablecoins gain legal recognition in the U.S.