Recently, the news about the invisible giant of the internet world, Cloudflare, launching a corporate stablecoin has sparked considerable discussion in both the tech and Web3 communities. You might be wondering, isn't Cloudflare a company focused on network security and acceleration? Why are they suddenly 'issuing a coin'?

Don't worry, this article is the introductory guide you need. Let's peel back the layers of the mysterious 'corporate stablecoin' in the simplest way possible and see what these tech giants are really planning.

Is Cloudflare Really Issuing a Coin? Demystifying the Concept of Corporate Stablecoins

First, we need to clarify one fact: Cloudflare is not issuing a 'cryptocurrency' like Bitcoin that is freely traded on the open market with a fluctuating price. What they plan to launch is something called a 'Corporate Stablecoin,' named NET Dollar.

So, what is a corporate stablecoin?

Imagine your favorite coffee shop introduces a 'stored-value card.' You pay $100 in cash and get a card worth $100, which can only be used at that coffee shop and a few of its partners. The value of this card always corresponds to the $100 you initially deposited; it won't be worth $120 today and $80 tomorrow.

A corporate stablecoin is somewhat like an 'upgraded version' of this stored-value card, but it's built on more advanced blockchain technology. It is typically issued by a company, pegged 1:1 to a fiat currency (like the US dollar), and is primarily used within its own business ecosystem or among its partners. Its core purpose is not for investment speculation, but to serve as an efficient and transparent internal settlement tool.

More Than Just Payments: Why Cloudflare is Embracing Corporate Stablecoins

You might think, 'Can't we just use traditional bank transfers?' Why would a network infrastructure giant like Cloudflare take this extra step? The answer lies in 'efficiency' and the 'future.'

Imagine the future of the internet, where many tasks are automatically completed by intelligent AI Agents. For example, your AI assistant finds a special offer on a flight ticket and needs to complete the payment instantly and automatically, without waiting for you to enter a password. This is precisely what Cloudflare is targeting; its NET Dollar is designed to power automated machine-to-machine payments.

Cloudflare's CEO, Matthew Prince, believes that the next business model of the internet will be driven by pay-per-use, small payments, and microtransactions. The emergence of stablecoins can help them build a financial rail for the future that operates at the speed of the internet itself. Specifically, there are several benefits:

• Global Settlement, Instant Arrival: For a global company like Cloudflare, using stablecoins can bypass the complex cross-border remittance processes of traditional banks, achieving 24/7, near-instantaneous global fund settlement.

• Cost Reduction: Compared to traditional wire transfers or credit card payments, the cost of stablecoin transactions is extremely low, especially when processing a massive volume of small payments, where the advantage is significant.

• Programmability: Stablecoins run on smart contracts, allowing for complex payment logic to be set. For example, a payment can be automatically triggered only after a software service is successfully invoked, paving the way for 'pay-as-you-go' business models.

How Do Corporate Stablecoins Work? What's the Difference Between Them, USDT, and Bitcoin?

Now that we understand the 'why,' let's look at the fundamental differences between corporate stablecoins and the more commonly known USDT and Bitcoin.

Simply put, we can categorize digital assets into three types:

1. Bitcoin (BTC): This is a decentralized crypto-asset with no issuing entity and no value peg. Its price is determined entirely by market supply and demand, making it highly volatile. You can think of it as 'digital gold,' a store of value.

2. Public Stablecoins (e.g., USDT, USDC): These stablecoins are issued by specific companies and are available to the general public, circulating freely on major exchanges. Their goal is to become the 'universal digital dollar' of the crypto world, facilitating trades between different crypto-assets.

3. Corporate Stablecoins (e.g., Cloudflare's NET Dollar): These stablecoins are also issued by a company and pegged to a fiat currency, but their main stage is the company's own ecosystem. They are designed as a 'tool' rather than a 'commodity,' emphasizing payment and settlement functions in specific scenarios, not liquidity on the open market.

Therefore, although all three use blockchain technology, their goals and attributes are distinctly different. Bitcoin seeks value consensus, public stablecoins seek market liquidity, and corporate stablecoins seek application efficiency in specific contexts.

Giants Enter the Fray: What Cloudflare's Move Means for the Web3 World

When a landmark event like the invisible giant of the internet world, Cloudflare, launching a corporate stablecoin occurs, it sends a strong positive signal for the development of the entire Web3 industry.

First, it's a powerful endorsement of the practical value of blockchain technology. It shows the world that blockchain is not just for 'speculative trading' but can genuinely solve real-world business problems related to efficiency and cost.

Second, it signals a shift from being 'speculation-driven' to 'application-driven.' According to industry data, the annual transaction volume of stablecoins reached $27.6 trillion in 2024, surpassing the combined transaction volumes of Visa and Mastercard, demonstrating their immense potential in the global payments landscape. The entry of infrastructure giants like Cloudflare will accelerate the creation of more practical Web3 applications and drive the technology's real-world adoption.

Finally, this move will significantly lower the barrier to entry for other traditional companies looking to enter Web3. By providing ready-made tools and services, Cloudflare is effectively building a solid bridge between the Web2 and Web3 worlds.

A Must-Read for Web3 Newcomers: How to Understand the On-Chain Moves of Tech Giants

As a Web3 newcomer, how should we correctly interpret news like this?

The most important thing is to focus on the 'why' rather than the 'will it pump?' The value of a corporate stablecoin doesn't lie in its potential for price appreciation (it's designed not to appreciate), but in the business problems it solves and the efficiency gains it brings.

We should view these developments as part of the broader digital transformation of the business world. Whether it's AI, cloud computing, or blockchain, these are new tools in the toolkits of giants, aimed at building a smarter, more efficient, and more global business future.

Next time you see similar news, try to think from the perspective of 'what problem does this solve and for whom?' instead of just seeing it as 'another new coin.' When exploring these new concepts, choosing well-known and regulated platforms for learning and experience is the first step to ensuring your own information security.

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