Stablecoins are digital currencies that are pegged to a stable asset, such as the US dollar, to provide stability in price. According to a Standard Chartered report, stablecoins are increasingly being used for various purposes similar to traditional finance, such as saving, transacting, and facilitating cross-border payments.
This shift is driven by the growing demand for faster and more accessible cross-border transactions, as traditional correspondent banking systems pose limitations, especially in emerging markets. The report also highlights that stablecoins are now being used for saving in USD, transacting in USD, and cross-border USD-to-USD transactions.
Furthermore, the stablecoin market cap currently stands at $163 billion, which, although small compared to the overall financial markets, has significant growth potential tied to regulatory developments. As a result, the future of stablecoins appears promising, with opportunities for increased adoption in both developed and emerging markets.
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<p>The post From Crypto Exchanges to Global Finance: Stablecoins’ Emerging Role first appeared on CoinBuzzFeed.</p>