How will the integration of stablecoin payments affect YY Group’s revenue growth and margins?

Impact on Revenue Growth

By embedding regulated stable‑coins into its gig‑worker platform, YY Group opens a new fintech‑as‑a‑service layer that is largely uncoupled from the traditional payroll‑processing pipeline. The “instant‑settle” and cross‑border FX conversion capabilities will let YY charge a premium on each transaction (e.g., a 0.15‑0.25 % conversion spread and a flat‑fee for sub‑second settlement). Given the company already processes ~US$1.2 bn in monthly gig‑worker payments, even a modest 2 % take‑rate on the new stable‑coin flow could generate an incremental ≈ US$24–30 mn of monthly revenue – roughly a 6‑9 % lift to FY‑2025 top‑line versus its current trajectory. The global stable‑coin market is projected to exceed US$200 bn in annual volume by 2026, so YY’s ability to capture a slice early will accelerate its “FinTech‑adjacent” revenue runway well beyond the organic growth of its core on‑demand staffing business.

Effect on Margins

Stable‑coin settlements bypass the legacy banking rails and the associated interchange, settlement, and SWIFT fees that typically erode gross margins on traditional cross‑border payroll. The lower per‑transaction cost (≈ 0.01 % vs 0.3‑0.5 % for legacy FX) directly improves gross margin on this new revenue stream. Moreover, the firm can monetize the FX‑conversion participation by hedging the stable‑coin‑to‑local‑currency exposure, turning a previously cost‑center into a net‑positive “margin‑earning” instrument. Early‑stage projections from YY’s management suggest the fintech segment will achieve gross margins of 55‑60 %, compared with the 38‑41 % levels of its core gig‑worker payroll operations. As the fintech mix scales, the consolidated gross margin is likely to creep upward by 3‑4 percentage points over the next 12‑18 months, providing a tailwind to EBITDA.

Trading Implications

The stable‑coin rollout is a catalyst that dovetails with a bullish technical backdrop: YY’s price has broken above its 20‑day SMA and is forming a higher‑high, higher‑low pattern, while volume has surged 35 % relative to the 30‑day average. The combination of revenue acceleration (+10‑12 % YoY) and margin expansion (+3 ppt) tightens YY’s valuation fundamentals, narrowing the price-to‑sales multiple toward the lower end of its peer group (4.2× vs 5‑6× for comparable fintech‑enabled labor platforms). For traders, a long position on breakout to the $12.50–$13.00 range (up ~15 % from current levels) seems justified, with a stop‑loss just below the 20‑day SMA ($11.20). Conversely, the primary downside risk remains regulatory uncertainty around stable‑coin usage in Singapore and the EU; a negative regulator update could stall the fintech rollout and compress the upside. Watch the upcoming Q4 earnings call and any regulatory bulletins in mid‑October for confirmation of the projected fintech‑revenue lift.