A new report indicates that stablecoins, currently a $163 billion market, could eventually account for 10% of the US money supply, depending on regulatory clarity, something that appears increasingly likely under the next administration of donald trump.
What happened
“Stablecoins have the potential to revolutionize global financial systems, closing gaps that traditional methods fail to address,” the report states. Zodia Markets and Standard Chartered.
Currently, stablecoins represent less than 1% of the US M2 money supply and foreign currency transactions.
However, their scalability and utility in cross-border payments, remittances and savings position them as a transformative digital asset class.
More Read
The report highlights that stablecoins are mostly pegged to fiat currencies, with currencies backed by the US dollar dominating the market.
Tether (CRYPTO:USDT) represents 73% of the total stablecoin market, followed by USD Coin (CRYPTO:USDC) with 21%.
Stablecoin transactions have grown steadily, reaching an average of $425 billion per month in 2024, although this is still a fraction of the $2.1 trillion traded daily in currency markets.
“With the right safeguards, stablecoins could be seamlessly integrated into traditional financial systems, amplifying efficiency and accessibility,” the report notes.
You can also read: Taiwan Semiconductor (TSM) will produce 2nm chips in the US by 2028
Why is it important
Regulation could drive a tenfold increase in the use of stablecoins, especially for cross-border payments and currency-equivalent transactions.
The report also highlights the role of stablecoins in accelerating financial inclusion: “By enabling secure and transparent transactions, stablecoins fulfill one of the first promises of digital assets: democratizing access to financial tools.”
Stablecoins have proven useful in addressing challenges in traditional finance, particularly in regions with limited banking infrastructure.
By offering a digital alternative to save and transact in US dollar terms, stablecoins present a potential solution for the 1.4 billion unbanked people globally.
The authors of the report, Geoff Kendrick and Nick Philpottconclude that stablecoins are the “first revolutionary application” of the Cryptocurrency industry.
Photo courtesy of Shutterstock
You can also read: MicroStrategy (MSTR) Stock Soars on Bitcoin (BTC) Recovery
For more updates on this topic, activate Benzinga Spain notifications or follow us on our social networks: x and Facebook.
Receive exclusive information on market movements 30 minutes before other traders
Benzinga Pro’s 14-day free trial, available in English, gives you access to exclusive information so you can receive useful trading signals before millions of other traders. CLICK HERE to start your free trial.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
