Original Title: "Yang Ge Gary: Asset On-chain Trend in Stablecoin Pricing Mechanism"

Original Source: Yang Ge Si Xue

In August 2025, global financial cities began to experience drastic market changes due to the stablecoin wave. The collaboration between Genius Act and Project Crypto, along with the wealth creation examples of Mstr and Circle, disrupted the equilibrium of traditional finance. Stablecoins, coin-equity linkage, DAT, RWA, and on-chain asset management quickly became the focal points in the new environment.

Essentially, the implementation of the stablecoin legislation marked the starting point of the comprehensive reform of global financial on-chain transformation. The second curve of Crypto's growth will follow the application scenarios of stablecoins and the tokenization of various assets. It will combine the flexibility of Crypto finance and the historical experience of professional finance to form a differentiated development under different regional compliance frameworks.

tl;dr

1. The essence of the Genius Act is to delegate the currency issuance and settlement rights, thereby gaining enhanced currency pricing power.

2. Stablecoins triggered the reform of global financial on-chain transformation and asset on-chainization through changes in currency pricing forms.

3. The reform rapidly eroded the long-standing cartel alliance in traditional finance, bringing opportunities for interest reorganization in the chaos.

4. Trump successfully leveraged his interests at the historical turning point to establish incredible legitimacy.

5. The two directions of coin-equity linkage, securitization, and tokenization, along with market characteristics.

6. Industry characteristics and issues of stablecoins, DAT, stock tokenization, RWA, and on-chain asset management.

7. Industry and cultural fragmentation after the initiation of Crypto's second growth curve.

1. The essence of the Genius Act is to delegate the currency issuance and settlement rights, thereby gaining enhanced currency pricing power.

In a previous article "GENIUS Act and On-chain Shadow Currency," it was detailed about the irreversible trend of the declining control of the traditional U.S. dollar, as well as the trade-off decision of Genius Act aiming to delegate the issuance and settlement rights in exchange for a larger-scale circulation of the U.S. dollar. In fact, within three months after the proposal of Genius Act, this move was further proved by the market to be insightful. At this stage, loosening the issuance and settlement rights of the U.S. dollar through shadow currency has enabled the widespread market application of U.S. dollar-derived stablecoins, strengthening a more extensive pricing power. Currency pricing power is the consensus competitiveness manifestation of future on-chain finance, while issuance and settlement rights will gradually fade into a common and general infrastructure, losing their moat and competitive value.

The future currency war is a consensus competition of currency applications, rather than a competition for currency issuance and settlement permissions. This point drives a fundamental reform of traditional finance through decentralized finance, a concept that many countries, regions, as well as some traditional financial experts, scholars, and entrepreneurs have not recognized or struggled to embrace. In other words, the future M2 of on-chain currencies will gradually lose its original meaning. The oversupply of currency and tokenized assets will represent a form of freedom, but this freedom does not signify equivalent value. The true value will exist in the consensus power of currencies and tokenized assets, reflected in their liquidity, purchasing power, interoperability, community acceptance, and other quantifiable market value feedback.

At this pivotal moment of transformational reform, flexibility in paradigm shift is crucial. Many definitions in traditional economics, methods of market control, and forms of asset management will change. For example, while M2 loses its original meaning, it may be adjusted through a liquidity value factor as a multiplier to obtain an effective circulation value of a currency or asset. Of course, various monetary and fiscal policies also need to undergo fundamental changes to adapt to the new form of on-chain economic governance.

2. Stablecoins have sparked global financial on-chain and asset on-chain reform through changes in currency pricing

After the Genius Act quietly initiated this new currency war, countries and regions worldwide have successively introduced their stablecoin regulations. Although many of these regulations are still anchored in the inertia rules of traditional monetary finance and require time to iteratively adjust and adapt, the overall on-chain reform of the financial market has begun.

While the settlement assets of 1USD and 1 USDC (or other stablecoins) may seem similar in pricing, the financial significance of assets has changed significantly due to the different nature of their monetary mechanisms. This is mainly reflected in the programmability, composability, market liquidity, ecosystem-differentiated circulation, and financial derivative flexibility of various assets.

Recently, when friends from a traditional financial background asked about the on-chain asset management features of CICADA Finance, I would use the analogy of a "financial motherboard." Various financial asset strategies are similar to "financial chips" of different algorithms, forming a flexible financial combination by choosing and plugging in asset management on the financial motherboard, where stablecoins act as the "financial current" (Note 1) linking the chips and the motherboard.

3. Reform is rapidly dismantling the long-standing cartel alliance in traditional finance, bringing opportunities for interest realignment amidst chaos

From the Genius Act to Project Crypto, stablecoins and on-chain finance reform have fundamentally disrupted the traditional financial rent-seeking model. At any other point in history, this would have surely sparked widespread conflict, but this time the transition has been remarkably smooth and acceptable. Is it because modern financial regulations have made competition fair or because contemporary institutions are more civilized compared to historical times?

Of course not. The reason is simple: the current global societal development curve is too steep. Enterprises that understand the trend and quickly transform can earn significantly higher additional profits than the cost of losses incurred by entrenched interests resisting change. The previous stage's financial cartel alliance was swiftly broken and abandoned by fast-transforming enterprises, from Wall Street to all of New York, as the whole system chose the (+3, +3) model to enter a new phase and engage in a new game. This transition process will inevitably lead to a chaotic restructuring of the financial markets during this phase and will also present numerous trading opportunities for new assets and funds.

Over the past month, I discovered in the New York market that the degree of cartelization varies significantly across different industries. Although the financial industry has rapidly transformed under the driving force of the Genius Act and Project Crypto, many traditional industries (such as real estate) remain very stubborn. Due to strict control by monopolistic alliances over entry conditions and information flow, the trading environment in many industries is still very primitive, and many RWAs are far from meeting the conditions required for the current tokenization upgrade.

4. Trump Successfully Embedded His Interests at a Historical Inflection Point to Form an Incredible Legitimacy

It is worth mentioning that the driving force behind these rapid developments is still the crypto president, Trump. Historically, driving reform has often been a high-risk, thankless task, especially when one's own interests are further intertwined. However, Trump's actions cleverly coincided with a special historical moment, gaining an incredible sense of correctness and legitimacy that offset a significant amount of negative resistance through the opportunity of a benefit realignment brought about by an inevitable industry trend development, creating a very unique and irreproducible effect.

5. The Two Directions of Coin-Stock Linkage: Securitization and Tokenization, and Market Characteristics

Coin-stock linkage is a key topic in Q3 2025. Essentially, coin-stock linkage involves two directions: one is to insert tokenized assets into a publicly traded company to form a capital premium in the form of stocks; the other is to tokenize stocks along the development of existing policies, creating a 24/7 tradable stock token market. The former is a process of securitization, typically regulated by a country's or region's securities regulator; the latter is a process of tokenization, usually temporarily regulated by a country's or region's alternative asset management regulations, some falling under banking regulations for currency or payment, while others come under alternative securities regulation.

The coin-stock linkage securitization process evolved a new term in Q3 2025, namely DAT (Digital Asset Treasury). This is a more flexible and universal process than ETF, which involves tokenizing assets and injecting them into a publicly traded company to create a capital premium on its stock. Building on the success of first-generation cases like Mstr, DAT has created a premium multiplier of 1.5x-2x (peaking at nearly 4x), becoming a mainstream wealth creation method in major financial cities such as New York and Hong Kong over the past six months. As we enter the late Q3 and early Q4 DAT market, the differences compared to the first-generation Mstr-BTC are: 1) Asset inclusion expansion, now encompassing other non-BTC token assets like ETH and SOL; 2) Apart from the stock price premium multiplier directly caused by asset injection, leveraging financial instruments to achieve higher capital or currency multipliers has begun; 3) Unlike Mstr, which has a benchmark political-economic significance, the practices of small and medium-sized publicly traded companies are mostly purely commercial, making the hidden risks of a post-premium David double kill more significant.

The coin-stock linkage tokenization process is still in its early stages in Q3 2025. There are several key issues: 1) Premature focus on the to C scenario, with current demand being insufficiently real (usually only involving increased trading duration and tax avoidance during non-compliance periods), still in the early stages of infrastructure development and to B; 2) Not very friendly to small and medium-sized project participants, profit difficulties due to issue 1 have resulted in only mature participants like Robinhood and Ondo Finance having the capability to support the early market; 3) Infrastructure development and to B demand are relatively concealed and lengthy, and individual business models are difficult to monetize independently, requiring the formation of an industry chain to achieve overall resonance, necessitating a period of growth. Many institutional entrants have certain assumptions wrong about the development of stock tokenization in the early stages. At this stage, what is truly needed or demanded for development includes: 1) Achieving compliance paths in different regions; 2) Enabling large-scale stock tokenization asset issuance with low-cost purchase/borrowing/holding of securities; 3) Forming large liquidity providers; 4) Creating leverage and derivatives markets through financial tools like lending; 5) Providing a large amount of highly liquid assets with alpha exploitable value for the insular token quant strategies market.

By comparison, as of Q3 2025, the coin-stock linkage securitization process is closer to money than the tokenization process, but the opportunity window is also shorter. In contrast, the tokenization process of debt-stock convergence is a long-term development direction, an important step in the asset chain process, and will open up a larger market for strategic quantitative financial assets.

6. Stablecoins, DAT, Stock Tokenization, RWA, and On-chain Asset Management: Industry Characteristics and Issues

Stablecoins, DAT, Stock Tokenization, RWA, and On-chain Asset Management can be considered the five key players in the Crypto industry's growth's second curve and asset tokenization. Among these, Stablecoins, DAT, and Stock Tokenization have been discussed earlier and will not be elaborated on here.

RWA is an interesting track that was unpopular last year but has seen a resurgence in popularity this year, accompanied by new challenges. The main issues include: 1) Most assets or platforms that engage in RWA treat it as a fundraising tool without considering post-issuance turnover purchasing power, exit strategies, liquidity concerns, interest rate matters, market-making difficulties, and sustainability; 2) Lack of or disregard for assessing the fair value of RWA assets and the Oracle process; 3) Apart from fundraising, there is a lack of economic design and ecosystem development in terms of composability and programmability, resembling typical Web2 P2P and Crowdfunding models.

Over the past few months, we have engaged with numerous RWA partners. Broadly speaking, RWA is essentially creating a secondary half-market for some non-standard assets. This poses a dilemma akin to the golden rule, where one should treat others as one would like to be treated. For assets lacking sufficient consensus, purchasing power, and liquidity, achieving full asset tokenization through RWA is still a challenge. The entire process of asset tokenization must undergo the standardization, fair valuation, marketization, and financialization of the asset itself. The most challenging issue for RWA assets is the liquidity problem of large and medium-term turnover, which mirrors the problems faced by structured finance entities and liquidity asset disposal institutions in traditional markets, for which there is still a lack of effective solutions in the current Crypto asset tokenization market.

Contrary to many people's intuitive focus on real estate, rare collections, and artworks, the most suitable assets for RWA asset tokenization at this stage are Supply Chain Fi and PayFi, as the characteristics of their underlying liquidity assets support the feasibility of tokenized transaction flows.

On-chain asset management is essentially a comprehensive track under the stablecoin wave that categorically manages various assets. It primarily deals with the systematic engineering of matching Liquid Assets with Liquid Funds, from economic model design to platform products, and from asset selection to asset management operations. Compared to TradFi, it is more complex, requiring multidimensional actuarial and quant capabilities. CICADA Finance has rapidly iterated its on-chain asset management capabilities over the past six months in the growth of the second curve, pioneering new standards for on-chain asset management. We welcome different assets and ecosystems for collaboration.

7. Industry Fragmentation and Cultural Divide in Crypto After the Launch of Crypto's Second Curve

After the August launch of SEC's Project Crypto, the rapid growth of Crypto's Second Curve accelerated further differentiation across the entire Crypto market. Various markets such as North America, Southeast Asia, the Middle East, and Africa began to exhibit entirely different characteristics.

The development of Native DeFi and the stablecoin ecosystem showed the strongest momentum in New York and the East Coast; opportunities for RWAs and coin-equity linkage existed in global financial cities, but were each influenced by their own policy specificities, amplifying the cognitive inertia of mainstream market participants and presenting different interpretations; Africa, South Asia, and South America are more focused on the development from the perspective of Supply Chain Fi and PayFi applications, which are actually the true mainstream emerging markets that have not yet been priced in by the Crypto Market, but possess significant follow-up power; Southeast Asia has instead become a hub for the subsequent development of the first curve, with centralized exchanges and narrative projects converging here to form a new purchasing power.

The different social environments under different geographies have led to a fractured hierarchy in the Crypto market, and the global finance sector faces disruptive changes in financial reform and asset pricing methods along different dimensions, with stablecoins being just the first step.

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