The post How $170B in Stablecoins Is Changing Global Money Transfers! appeared first on Coinpedia Fintech News
Stable coins are getting more important in the global financial systems now. Even though they are crypto, a lot of people prefer stablecoins over other cryptos. These digital assets are designed to maintain a steady value and this might be the reason why people prefer them as a store of value over local currencies.
According to a report from Bernstein broker, stablecoins rank as the 18th largest holders of U.S. Treasuries. These currencies are often pegged to the U.S dollar, sometimes they are also tied to other currencies and assets like Gold.
The supply of stablecoins saw a slight decline in 2023 however now they have hit a record high. According to Forbes data, stablecoins market cap has reached to $172.38 billion. There are around 150 stablecoins available in the market. Tether or commonly known as USDT leads them all with a market cap of $118.8 B. The second highest asset in this category is USDC with a market cap of $35.5 billion. The monthly on-chain payment volumes have hit an impressive $1.4 trillion in July this year. This is almost triple what it was last year.
Companies like PayPal, Ralph Lauren, AMC Theaters have integrated stablecoins into their system. Everyday more and more companies are embracing crypto payments especially due to stablecoins. This might be one of the reasons why more crypto projects are launching new stable coins. Bitgo in Token2049 announced they are going to launch a stablecoin USDC in January 2025. By integrating stablecoins for faster and more affordable transactions businesses can reap the benefits of the future of money.
Stable coins are becoming very popular among younger generations. Around 20% of people in the age range of 18-24 hold over 25% of their portfolios in stablecoins. They prefer to store their value in these digital assets and not in traditional currencies.
With the rise in market cap of stable coins, companies integrating these into their financial systems and more crypto projects launching stable coins pegged to various assets, it would be very interesting to see the future stable coins are going to get.