Stablecoins, initially created as a bridge between cryptocurrencies and traditional finance, have quietly transformed into an independent force. By the end of 2024, their total capitalization exceeded $200 billion, comparable to the GDP of an average European country.
According to DeFiLama, there are over 200 stablecoins in the market, pegged to various national currencies or other assets, such as gold. However, over 95% of the market capitalization of stablecoins is tied to the U.S. dollar.
Stablecoins are used for everyday payments and transfers between individuals. The high speed of transaction processing and low fees—especially compared to the traditional banking system—make them an attractive tool for a wide range of users.
Several key factors create the groundwork for revolutionary changes in the financial system. The daily transaction volume with stablecoins has already exceeded $71 billion, but it's not just about the numbers. These 'stable' coins are gradually changing the structure of the financial world.
Firstly, stablecoins help millions of people access modern financial services, make transfers, and participate in the global economy. For them, stablecoins become the first step into the world of modern finance.
Secondly, the development of crypto processing and the mass production of debit crypto cards simplify the use of stablecoins in everyday life, making them as convenient as traditional currencies. Users can make international transfers without high bank fees and lengthy verification procedures.
"Investing in stablecoins will become as commonplace as bank deposits. Additionally, in 2025, crypto processing services will be actively developed, and companies will begin to mass-produce debit cards supporting cryptocurrencies," comments Mike Lvov, PR and Communications Director at EMCD.
At the same time, the role of stablecoins in the decentralized finance (DeFi) ecosystem is growing: users can earn on savings, take loans, and participate in other financial operations without resorting to banks and other intermediaries. Thus, an alternative ecosystem already exists and is developing in the shadows of the banking system.
At the same time, distrust in the traditional banking system is growing. High inflation and banking crises undermine confidence in financial institutions' ability to protect clients' interests.
Institutional investors value stablecoins for their stability and technological advantages and are increasingly adding them to their portfolios. This legitimizes stablecoins as a full-fledged financial instrument and attracts new participants to the cryptocurrency space.
Scenario Description
In early 2025, an event occurs that forever changes the financial landscape: the U.S. Federal Reserve announces plans to convert dollar reserves into stablecoins. This decision comes after the capitalization of stablecoins exceeds the GDP of half the countries in the world, and their stability and transparency become indisputable.
The traditional banking system faces an existential choice. Major banks and financial companies, realizing the inevitability of change, begin to mass-convert their assets into stablecoins. When it becomes clear that hesitation threatens to lose competitive positions, the process, which began as a cautious experiment, turns into an avalanche.
