Crypto for Advisors Newsletter Highlights Stablecoins and Their Growth
The current Crypto for Advisor newsletter highlights key discussions at Consensus Toronto, focusing on bitcoin, blockchain, regulation, and AI.
Stablecoins - Past, Present and Future
- Stablecoins have gained traction among major financial institutions, becoming essential in digital finance.
- Introduced by Tether in 2015, stablecoins like USDT enable stable, dollar-denominated value transfer on-chain.
- In 2024, stablecoin transaction volume surpassed $5.5 trillion, compared to Visa's $13.2 trillion and Mastercard's $9.7 trillion.
Major Use Cases
- Digital Asset Trading: Stablecoins now support over $30 trillion in annual trading volume across exchanges.
- Real World Assets: Tokenized U.S. Treasuries have seen AUM grow from $100 million to over $6 billion within a year.
- Payment: Stablecoins provide faster and cheaper alternatives for cross-border transactions, with costs significantly lower than traditional wire transfers.
Ask an Expert
Q: How do stablecoins offer value to investors?
A: Stablecoins shield investors from crypto volatility while maintaining exposure to the market. Their combined market cap exceeds $245 billion, indicating substantial growth.
Q: Are stablecoins affected by market fluctuations?
A: While stablecoins are less volatile, they still depend on regulatory developments and issuer credibility. Europe's MiCA regulations enhance stability but may limit competition.
Q: Is Europe emerging as a stablecoin hub?
A: With MiCA regulations promoting a structured environment, Europe could attract more stablecoin issuers, though challenges remain in licensing and implementation.
Keep Reading
- New Hampshire becomes the first U.S. state to pass a Strategic Bitcoin Reserve Bill.
- SEC Chair Paul Atkins prioritizes developing a rational regulatory framework for crypto.
- Missouri may become the first state to exempt capital gains on bitcoin profits.