As regulatory transparency looms under Trump, Stablecoin market reaches $190 billion
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The stablecoin market has reached $190 billion with potential regulatory support under Trump. Emerging markets such as Brazil, Turkey and Nigeria lead the adoption of stablecoins for financial services.
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The stablecoin market continues to demonstrate its ability to reshape global finance, with its market capitalization reaching a record of $190 billion, according to DeFillama data.
According to a report by The Block, stablecoin adoption could increase significantly, representing 10% of US M2 money supply transactions, up from the current 1%.
Citing Standard Chartered and Zodia market analysts, the report emphasized that regulatory reforms under the Trump administration could accelerate this adoption.
Regulatory transparency is expected to boost adoption in areas such as cross-border payments, payroll, trade agreements and financial transactions.
Analysts Geoff Kendrick and Nick Phipot emphasized that the Trump administration could lead significant progress in regulating the stablecoin, a change from the limited advances of the Biden administration.
The rise of Statcoins is also due to inefficiencies in the traditional financial system, such as opaque payment structures such as SWIFT and correspondent banking networks.
Users in emerging markets such as Brazil, Turkey and Nigeria are adopting stablecoins to exchange money, make cross-border payments and access high-yield financial products, according to Block's report.
This growing adoption of Tether is parallel to the recent expansion of traditional financial transactions, such as the financing of the first crude oil transaction in the Middle East, indicating increased confidence in the stablecoin market.
Similarly, Stripe's $1.1 billion purchase of stablecoin startup Bridge shows growing interest from traditional financial institutions.
While Trump's pro-crypto policies have fueled optimism in the digital asset sector, analysts see stablecoins as critical to global trade as their use cases expand beyond commerce.
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