With a current market cap of less than $200 billion, stablecoins represent a tiny fraction of global financial transactions – just 1% of US money supply and foreign exchange operations.
However, a joint report by Standard Chartered and Zodia Markets research suggests significant growth potential, with experts projecting expansion to 10% of the US money supply and foreign exchange transactions.titled ‘Stablecoins: The First Killer App,’ the utility of stablecoins has evolved well beyond their original role in cryptocurrency trading.
These applications demonstrate their ability to address inefficiencies in existing financial systems, such as high costs, delayed transaction times, and limited accessibility in underserved regions. By providing faster and cheaper transactions, stablecoins offer a compelling solution for international remittances and business operations, positioning themselves as a pivotal tool in modern finance.adoption for the broader financial ecosystem.
Regulation is seen as the key to this transition. While previous US administrations have made little progress in establishing stablecoin-specific policies, the report suggests that a Trump-led government in 2025 might prioritize these efforts. In fact, this regulatory clarity is expected to unlock stablecoins’ full potential, enabling them to scale and diversify their use cases further.Meanwhile, Standard Chartered’s Thursday report cited a YouGov survey that found compelling use cases.