Stablecoins are becoming crucial in digital finance, driving the growth of decentralized banks.
From Cointelegraph
March 30, 2025 11:00 am:
The current market is influenced by US administration tariffs and retaliatory measures from trading partners. Trump’s tariffs are seen as a negotiation strategy, with manageable effects on businesses and consumers. Market uncertainty increases due to inflationary pressures and a fiscal debate in Washington over the federal budget. The debt ceiling issue remains unresolved as analysts predict running out of measures by the first quarter.
Stablecoins have evolved from an experiment to a critical part of the digital financial infrastructure, with a market cap of $226 billion. Dollar-pegged stablecoins dominate the market, accounting for over 98% of the supply. Tether’s USDt represents over 60% of the total market, and the market is expected to expand with Asian currency-backed stablecoins.
Despite regulatory challenges, stablecoins are gaining traction in emerging markets like Brazil, where 90% of crypto transactions use stablecoins for international purchases. Argentina ranks second in stablecoin holdings, driven by high inflation and the need for wealth protection. The shift towards stablecoins reflects a global trend of using them as a hedge against currency devaluation.
Stablecoins have paved the way for deobanks, decentralized onchain banks that embrace stablecoins as their native currency. Deobanks provide financial services to all, offering control over funds through non-custodial accounts and real-time transaction transparency. The decentralized nature of deobanks eliminates intermediaries, reducing costs and increasing transaction speed.
Analysts predict the stablecoin market cap will exceed $400 billion by 2025, driven by the growth of deobanks using stablecoins for economic expansion and digital payment networks. The rise of stablecoins and next-generation onchain banks will transform cross-border transactions and promote lower fees, faster payments, and increased access to financial services. This trend signifies a shift towards a more resilient financial ecosystem.
Read more at Cointelegraph: Stablecoins are powering deobanks