Catenaa, Wednesday, December 4, 2024 – Standard Chartered and Zodia Markets analysts predict stablecoin could grow to represent 10% of US M2 money supply and foreign exchange transactions, up from the current 1%.
The forecast, shared in a Thursday report, highlights potential regulatory progress under the incoming Trump administration as a key factor in driving adoption.
Stablecoins, digital assets pegged to traditional currencies, are increasingly used for payroll, trade settlement, and remittances. A YouGov survey revealed significant traction in emerging markets like Brazil, Nigeria, and India, where users value the ability to hold dollar-equivalent tokens securely and bypass unreliable banking systems. Currency substitution, cited by 69% of respondents, was the most common application, followed by cross-border payments.
The report critiques outdated financial systems, such as SWIFT and RTGS, for opaque fee structures and inefficiency. Stablecoins, analysts say, offer a transparent, faster alternative.
Globally, stablecoin market capitalization has reached a record $190 billion, surpassing the April 2022 high of $188 billion. Fiat-backed coins like USDT dominate, comprising 73% of the market and ranking as the third-largest digital asset after Bitcoin and Ethereum.
With regulatory clarity anticipated and demand rising in underserved markets, analysts see stablecoins poised to reshape global financial infrastructure.
