Major global platforms to issue co-branded stablecoins, driving significant growth
According to a research report by brokerage firm Bernstein, the stablecoin market is projected to reach $2.8 trillion within the next five years, up from the current $125 billion. The report suggests that the integration of stablecoins with consumer platforms will act as a “growth flywheel,” expanding their user base beyond crypto-native platforms. Major financial and consumer platforms are expected to issue co-branded stablecoins to facilitate value-exchange on their platforms. This trend has already begun, with PayPal recently announcing its own dollar-pegged stablecoin. Stablecoins will be powered by a fast financial settlement layer on public blockchains like Ethereum. The growth of stablecoins will be driven by regulated, onshore stablecoins, with several jurisdictions already piloting projects in this area.
Key Points:
– The stablecoin market is forecasted to grow to $2.8 trillion in the next five years.
– Integration with consumer platforms will drive growth for stablecoins.
– Major financial and consumer platforms are expected to issue co-branded stablecoins.
– PayPal recently announced its own dollar-pegged stablecoin.
– Stablecoins will be powered by a fast financial settlement layer on public blockchains.
Hot Take:
The issuance of co-branded stablecoins by major global platforms is poised to revolutionize the cryptocurrency market. With increased integration into consumer platforms, stablecoins will gain wider acceptance and adoption, leading to exponential growth. This development also highlights the shift towards regulated, onshore stablecoins, which enjoy more political support than other cryptocurrencies. As stablecoin projects gain traction in various jurisdictions, we can expect to see more innovative use cases and partnerships emerge, further solidifying stablecoins’ position as a key player in the digital currency landscape.
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