Loosely held view: there are three independent trends that seem favorable for stablecoins being the big winner in this crypto winter.

1. High interest rates make it a good biz

2. US federal legislation likely in the next 12 months; would make traditional FIs more comfortable

3. Developer infra being built out now

One scenario is PayPal (+Venmo) and Square (Cash App) allow for USDC send / receive. Now the fintech consumer platforms are as interoperable as Zelle. Add Stripe and Shopify as USDC friendly.

Also means you could in theory create a Visa competitor based on stablecoin rails. Start with e-commerce.

would they have to kyc every user? or can they operate as a wallet?

but is it possible not to and operate as a non-custodial wallet?

All of those platforms already KYC every user. Cash App is already a Bitcoin wallet.