The stablecoin market is projected to grow to $500 billion in 2025, up from $206 billion, according to analysts at Bernstein. The sector experienced a 57% increase last year and is expected to continue accelerating.
Arnoud Star Busmann, CEO of Quantoz Payments, highlighted that stablecoins are expanding their role beyond cryptocurrency, emphasizing their potential to transform global commerce. Quantoz recently launched stablecoins pegged to the dollar and euro on Ethereum.
Busmann stated, "Stablecoins have the potential to revolutionise global commerce by providing a programmable and efficient alternative to traditional finance systems." He noted their transparency and cost efficiency as key advantages for digital payments.
Visa has been instrumental in helping banks deploy their own stablecoins, while Stripe acquired the stablecoin platform Bridge for $1.1 billion in October. Market analysts view stablecoins as a bridge between traditional and decentralized finance.
Dary McGovern, COO at Xapo Bank, pointed out that stablecoins facilitate faster and cheaper cross-border transactions, a significant growth area in the fintech sector.
Despite challenges faced by companies like Meta, which struggled to launch its Libra project, the regulatory environment has improved. Deborah Algeo from Zodi Custody noted that frameworks ensuring transparency and compliance have been established, particularly with the introduction of the MiCA regulation in Europe.
Busmann believes that MiCA will encourage retail users to adopt more regulated stablecoins, unlocking numerous opportunities in the market.