As a payment giant, Visa is gradually getting involved in the field of stablecoins. Through its existing global business network, Visa supports more than 50 wallet partners, helping stablecoin users to make payments between 130 million merchants around the world. At the same time, Visa is piloting the use of stablecoins such as USDC to expand the settlement capabilities of issuing banks and acquiring banks.
Author: TechFlow. Ported by: Bosen Quantitative Consultant Xiao Sun (bosen0722)
Recently, Visa and several other institutions jointly released a stablecoin market research report, focusing on the use of stablecoins in five emerging markets: Brazil, Turkey, Nigeria, India, and Indonesia. The report reveals the widespread use of stablecoins in these markets, especially in currency substitution and cross-border payments.
The rise of the stablecoin market
On-chain data shows that the use of stablecoins continues to grow. In the first half of 2024, the total value of stablecoin settlement exceeded US$2.6 trillion, and is expected to reach US$5.28 trillion for the whole year. Despite the lows in the crypto market, the demand for stablecoins remains strong, especially in emerging markets, where they have become a powerful tool to combat local currency fluctuations and cross-border payments.
Diversification of stablecoin uses
The survey shows that 47% of users use stablecoins for US dollar savings, 43% for currency exchange, and 39% for yield generation. In addition, currency substitution (69%) and cross-border payments (39%) are the most common non-cryptocurrency applications.
The rapid growth of the stablecoin market has also brought about the "dollarization" of blockchain. Although various types of stablecoins have emerged in an endless stream, the vast majority of stablecoins are pegged to the US dollar. The report pointed out that the dominance of US dollar stablecoins reflects its liquidity advantages and global trust.
Stablecoins as a savior for emerging markets
In countries with high inflation and severe currency fluctuations, stablecoins have gradually become the preferred tool for savings and cross-border payments. Users in countries such as Nigeria, Turkey and India have a particularly strong demand for stablecoins, especially in the absence of US dollar banking, stablecoins have shown great appeal as an alternative currency.
Young users’ preference for stablecoins
Young users aged 18-24 are the main group of stablecoins. They are more inclined to try multiple stablecoins, and their proportion in their portfolios is higher than that of older people. In addition, young people also use stablecoins more often for commodity payments, remittances and salary collection.
Future Outlook
The global adoption of stablecoins has been faster than expected, especially in emerging markets. With the development of the crypto industry and the widespread use of stablecoins, stablecoins may occupy a more important position in the global payment and settlement system in the coming years.
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