Stablecoins are set for growth as regulatory barriers are removed. Companies and cryptos stand to benefit from higher transaction volumes. The stablecoin market has surged from $12 billion in 2020 to $220 billion in 2025, with predictions of hitting $2 trillion by 2028.
Stablecoins offer fast, low-cost transactions without the volatility of other cryptocurrencies. The recent passage of the Genius Act provides a clear framework for stablecoins by setting guidelines for issuers. This legislation aims to build consumer confidence and remove roadblocks to stablecoin adoption.
Investors can capitalize on the stablecoin trend by investing in listed companies or cryptocurrency ecosystems. Companies like Circle, Coinbase, Robinhood, and PayPal are key players in the stablecoin space. Stablecoins run on smart-contract blockchains like Ethereum, Tron, and Solana, indicating potential growth for these ecosystems.
With stablecoins accounting for only 1% of global money flows, the market’s evolution remains uncertain. Legislation and technical developments may drive growth, but risks like security and consumer protection persist. Mainstream adoption of stablecoins could transform financial infrastructure, but caution is advised when investing in this emerging sector.
Read more at Nasdaq: Prediction: Stablecoins Are About to Soar. Here’s Why.