Industry Outlook

The Stablecoins market accounted for USD 182.6 Billion in 2024 and is expected to reach USD 1,106.8 Billion by 2035, growing at a CAGR of around 17.8% between 2025 and 2035.  Stablecoins are a form of cryptocurrencies that are created to retain a stable value pegged against an asset like fiat currencies or commodities. There are various forms of stablecoins are in great demand for secure transactions and trading, and as reliable sources of value in the digital asset ecosystem, improving both the DeFi space and the traditional system of payment in their respective ways. Stablecoins are very important in DeFi to provide liquidity both in lending and borrowing. Besides providing stable value against volatile assets, stablecoins have also served as a hedge against economic instability or hyperinflation. Stablecoins also facilitate microtransactions and digital payments because they enable small transactions with minimal fees.

Report Scope:

Market Dynamics

• Stablecoin-Based Investment Blockchains Surge as Market Growth and Institutional Adoption

Stablecoin-based investments in blockchains are significantly driving the stablecoin market by providing stability and liquidity in volatile financial environments. This growth is due to the increasing adoption of stablecoins in investment blockchains, such as yield-bearing accounts and liquidity pools. The growing use of stablecoins in institutional investment strategies, fueled by their perceived stability and ease of integration into current financial institutions, supports this trend. Additionally, data from the European Central Bank shows that 90% of the stablecoin market is made up of collateralized stablecoins like ether, USD Coin, and Binance USD. The rise in investment in blockchains based stablecoins can be attributed to the stability of stablecoins, increasing institutional interest, the growth of DeFi, and improved regulatory clarity. These factors collectively contribute to a stronger and more appealing investment ecosystem, which fuels the advancement and acceptance of stablecoin-based blockchain platforms.

• Technological and Security Risks Impacting Stablecoin Reliability

It is also right that stablecoins, especially those relying on blockchain, possess a lot of security and technology-related risks. Smart-contract vulnerabilities could be exploited by hackers and, thus, come with potential losses or disruptions. Furthermore, if the underlying blockchain infrastructure becomes defective or incomplete, or if the technology used to manage the reserves becomes incomplete, then instability can be created. This includes security breaches, which would also encompass successful attacks on the issuing platform or its constituent systems. Clearly, security and continued technological updates will be critical in mitigating these risks and ensuring users continue to have confidence in the stablecoin as reliable.

• Seizing the market potential of Stablecoins through its ability to be programmable

Stablecoins can be programmable money that opens enormous possibilities for innovation in new financial applications. They will be embeddable within smart contracts on any blockchain platform, thereby automatically allowing custom financial transactions without intermediaries. By embedding rules and logic directly in the protocol of a stablecoin, developers can make financial solutions more efficient and transparent. This programmability enables the creation of sophisticated financial instruments, from automated savings schemes to insurance blockchains and decentralized exchanges. For instance, in July, 2024, Ample FinTech, a FinTech startup based in Singapore, introduced PBM3525, a revolutionary programmable money technology. This technology eliminates the need for financial intermediaries or the need for smart contract programming by allowing individuals and commercial users to configure and customize payment conditions and logics on blockchains.

Industry Experts Opinion

“We’re going to do everything we can to launch this year. Everything Ripple does is in conjunction with regulatory approval and licensing. And so a key issue is that we will continue to make sure we are partnered with U.S. regulators before we go live with the stablecoin,” 

           -Ripple CEO Brad Garlinghouse

"At WSPN, we are committed to revolutionizing the digital payments landscape by providing secure, transparent, and accessible financial solutions for individuals and businesses worldwide. Austin's strategic expertise and proven track record in the digital asset space will be essential as we work to make WUSD a leading force in the next phase of growth. We are confident that Austin's expertise will be instrumental in driving the future of finance with WUSD as the leading stablecoin innovation,"

         -Raymond Yuan, Founder of WSPN.

Segment Analysis

Based on the blockchain, the Stablecoins market has been classified into Ethereum-based Stablecoins, Binance Smart Chain (BSC) Stablecoins, and Others. The Ethereum-based Stablecoins dominates in terms of hosting the blockchain for the issuance of the stablecoin, due to its advanced possibilities regarding deploying smart contracts and a large ecosystem that supports a wide range of dApps and DeFi protocols. All of the major stablecoins such as Tether (USDT), USD Coin (USDC), and Dai (DAI) are bound to the Ethereum blockchain.

Based on the blockchain, type of Backing the Stablecoins market has been classified into Fiat-Collateralized Stablecoins, Crypto-Collateralized Stablecoins, and Others. The Fiat-collateralized stablecoins dominated the market as their simple backing of traditional fiat currency gives a great deal of trust and stability in their value. Their prices are pegged to widely recognized and established fiat currency, such as the USD, hence making the asset understandable and reliable for users. 

Regional Analysis

The United States is currently the leading region for stablecoin market, due to its well-established regulatory environment and substantial financial infrastructure. U.S.-based stablecoin providers like Tether (USDT) and USD Coin (USDC) benefit from the country's strong legal framework, which provides clarity and stability for cryptocurrency operations. This regulatory environment, combined with the large number of cryptocurrency exchanges and financial institutions, ensures high levels of liquidity and trading volume for stablecoins.

Latin America is the fastest-growing market for stablecoins. High inflation and economic turmoil in countries such as Argentina and Venezuela have made their citizens look to stablecoin as a source of stability amid their extremely volatile currencies. Underpinning growth comes from the demand for more dependable ways of saving, settling transactions, and making remittances. A rampant fintech ecosystem and full-blown digital financial services additionally contributed to accelerating the pace of adoption across the region.

Competitive Landscape

The market for stablecoins is very competitive, with a few large companies dominating it. The major players include Binance, Paxos Trust Company, Tether Limited Inc., Circle, Coinbase Global Inc., and HTX, Datachain Inc., all of which offer various stablecoin solutions. Moreover, BUSD and DAI have gained traction in recent years. BUSD has the advantage of operating within the well-established Binance ecosystem, leading to liquidity and adoption through the trading platform and services associated with Binance.

On the other hand, DAI is structured as a decentralized stablecoin, attracting users who wish to remain financially sovereign and avoid utilizing any sort of centralized solutions. Both BUSD and DAI showcase the extensiveness of decentralized and centralized utilization in the stablecoin space.

Stablecoins Market, Company Shares Analysis, 2024

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Recent Developments:

• In June, 2024, The GMO Internet Group and the massive Japanese financial services company Nomura Holdings have partnered to investigate stablecoins backed by the US dollar and the Japanese yen. Nomura's digital asset subsidiary Laser Digital will also be a part of the partnership.
• In June, 2024, Datachain and Progmat partnered to maximize the AUM (Assets Under Management) of stablecoins issued using “Progmat Coin”, a stablecoin issuance and management platform developed by Progmat. The collaboration will see Datachain and Progmat jointly promote the development of stablecoin contracts and global market development, in addition to their existing multi-chain/cross-chain expansion.

Report Coverage:

By Blockchain

• Ethereum-based Stablecoins
• Binance Smart Chain (BSC) Stablecoins
• Others

By Type of Baking

• Fiat-Collateralized Stablecoins
• Crypto-Collateralized Stablecoins
• Others  

By Use Cases

• Payments
• Trading and Investment
• Lending and borrowing
• Remittances

Distribution Channel

• Cryptocurrency Exchanges
• DeFi Platforms
• Payment Gateways
• Crypto Wallets

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Binance
• Paxos Trust Company
• Tether Limited Inc.
• Circle
• Coinbase Global, Inc.
• HTX
• Datachain, Inc.

Frequently Asked Questions (FAQs)