The market cap of stablecoins has hit a new record high of $190 billion, reflecting their significant potential to reshape global finance, according to figures provided by the DeFiLlama platform.
A report by The Block predicts that stablecoin adoption will see a significant jump, as it could account for 10% of M2 money supply transactions in the United States, compared to 1% currently.
The report notes that this growth is linked to regulatory legitimization of the sector, with a particular focus on reforms that the Trump administration may support.
According to an analysis by Standard Chartered and Zodia Markets, regulatory clarity could accelerate the use of stablecoins in critical areas such as cross-border payments, payroll, trade settlement, and remittances.
Analysts Jeff Kendrick and Nick Philpott argue that the Trump administration could play a major role in strengthening regulation of stablecoins, a notable shift compared to the limited progress made by the Biden administration.
These developments come amid growing global interest in stablecoins, with emerging markets such as Brazil, Turkey, and Nigeria attracting particular attention, as stablecoins are used to replace national currencies, facilitate cross-border payments, and provide access to higher-yielding financial products.
This trend is also linked to inefficiencies in the traditional financial system, such as the opaque fees of SWIFT networks and banks.
On the institutional front, stablecoins are attracting significant interest, as evidenced by Stripe’s acquisition of stablecoin startup Bridge for $1.1 billion.
Additionally, Tether recently expanded its operations to include traditional financing transactions, including financing its first crude oil deal in the Middle East, further boosting confidence in the stablecoin market.
These developments point to stablecoins becoming an essential part of global commerce, with their uses expanding beyond traditional trading.
Analysts believe that this dynamic, supported by clearer regulatory policies, could lead to wider adoption of stablecoins in the global economy.
