The stablecoin sector has grown to more than $250 billion in market capitalization, illustrating its scale within the digital-asset landscape. Stablecoins are among the fastest-growing areas of the crypto world, expanding roughly 49% last year. The two behemoths, Tether and USDC, now account for a combined market cap near $250 billion.
In earnings calls this year, executives at Visa and Mastercard dismissed the utility of stablecoins, arguing that there is no real demand for stablecoins among consumers in developed markets, and that usage is largely limited to cross-border payments. Their stance underscores a broader debate about whether stablecoins can achieve wider merchant adoption.
Proponents counter that blockchain-based stablecoins offer 24/7 settlement and near-immediate finality, potentially delivering higher yields than traditional bank deposits. Standard Chartered forecasts that up to half a trillion dollars of deposits could migrate into stablecoins by 2028. Investors have options, with nine stablecoins above $1 billion in market cap. Beyond Tether and USDC, there are stablecoins issued by PayPal and a Ripple-backed token, among others. Despite skepticism from Visa and Mastercard, supporters argue that stablecoins are far from a passing fad and warrant continued attention in this fast-evolving sector. It’s time for investors to keep a close eye on what’s happening within this fast-growing area of the crypto market.
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