Stablecoin market cap reaches $205 billion with Visa and PayPal driving adoption

From Nasdaq: 2024-12-31 15:24:23

Stablecoins, a less volatile subset of the cryptocurrency market, gained traction in 2024 with firms like Visa and PayPal making significant investments. The market cap reached $205 billion, with Tether leading at $140 billion. European regulations are driving innovation, while companies like Stripe are expanding their stablecoin operations.

Visa’s new token platform and PayPal’s partnership with Paxos signal mainstream corporate interest in stablecoins. High-yield investments in U.S. Treasuries provide a lucrative revenue stream for fintechs issuing stablecoins. European regulations like MiCA are fostering competition, particularly benefiting challengers like Circle in the EU market.

Looking ahead to 2025, wider adoption of stablecoins is expected as companies explore blockchain efficiencies. While optimism is high after Trump’s election win, risks remain due to the lack of unified U.S. regulatory frameworks. Stablecoins serve as a bridge between traditional finance and the crypto ecosystem, but challenges persist in terms of regulation and market stability.



Read more at Nasdaq: $205 Billion Stablecoin Market Gain Traction: Visa and PayPal Drive Adoption in 2024