Mizuho says MasterCard and Visa stablecoin concerns overblown

Mizuho analyst Dan Dolev says that while stablecoins have the potential to disrupt traditional financial systems over time by reducing settlement times and allowing for potentially cheaper transactions, worries about the incumbent networks are overblown. The networks are mostly exposed to global consumer credit, which is “incredibly sticky,” and regulated U.S. debit, which is “already at barebones pricing,” the analyst tells investors in a research note. The firm envisions “growing disruption” in international remittances and business-to-business cross-border payments, and views cash-collateralized stablecoins as “key winners,” since they maintain value by keeping reserves of government-issued currencies. Mizuho feels stablecoin concerns around Visa (V), MasterCard (MA) and PayPal (PYPL) are overblown.