Stablecoins, originally used in crypto exchanges, are now being applied to various areas in global finance, according to a recent Standard Chartered report. These digital assets are increasingly used for saving and transacting in US dollars and facilitating cross-border payments. Traditional correspondent banking systems have limitations, especially in emerging markets, but stablecoins offer a solution by enabling the transfer of digital dollar assets at speeds similar to email, bypassing the slow and unreliable traditional systems.
Currently, U.S. dollar-pegged stablecoins dominate the market, accounting for 99.3% of the market capitalization. However, there is growing interest in non-USD stablecoins, with the emergence of stablecoins linked to other national currencies like the Turkish lira. The report indicates that the stablecoin market cap is currently $163 billion, a relatively small figure compared to overall financial markets but with significant growth potential.
The use of stablecoins is expected to grow, particularly if U.S. stablecoin regulation is passed, with Standard Chartered arguing that this growing adoption highlights their role as a “first killer app” in digital assets. The combination of technological advancement and regulatory support may position stablecoins as a significant component of the global financial infrastructure.
Standard Chartered has also been optimistic about the crypto market recently, recommending investors purchase Bitcoin below $60,000 regardless of the election outcome. Given Bitcoin’s current rally towards $100,000, this advice has led to considerable returns for investors in a short period.
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