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<a href="https://thecoinrise.com/stablecoins-enters-spotlight-with-us-treasury-department-heres-why/" rel="noopener noreferrer nofollow">Stablecoins, once a niche asset class, are rapidly gaining traction</a> as they emerge as serious contenders in the financial world. A recent report from Standard Chartered’s Geoff Kendrick and Zodia Markets’ Nick Philpott painted a compelling picture for the future. The financial analysts suggested that stablecoins could grow to represent 10% of the U.S. M2 transactions. Kendrick and Philpott mentioned that Stablecoins are poised to become a cornerstone of global finance.
<h2 id="b-can-stablecoins-hold-10-of-the-u-s-money-supply-b">Can Stablecoins Hold 10% of the U.S. Money Supply?</h2>
The tokens are digital currencies pegged to traditional assets like the U.S. dollar, represent a small slice of the financial pie. The asset class accounts for just 1% of U.S. M2 transactions, a measure of the money supply that includes cash, checking deposits, and easily convertible assets.
Yet Kendrick and Philpott believe this is just the beginning. The analysts predicted that stablecoins could soon handle up to 10% of U.S. M2 and foreign exchange (FX) transactions. They highlighted that growing regulatory clarity and a clear demand for alternatives to outdated financial systems could fuel the growth.
The Biden administration took initial steps toward regulating stablecoins, but progress stalled. The analysts say <a href="https://thecoinrise.com/trump-administration-eyes-cftc-to-regulate-crypto-paving-way-for-industry-growth/" target="_blank" rel="noopener noreferrer nofollow">the incoming Trump administration</a> might take a more aggressive approach to establishing a framework that encourages the tokens’ growth.
<h2 id="b-stablecoins-revolutionizes-outdated-financial-systems-b">Stablecoins Revolutionizes Outdated Financial Systems</h2>
Global financial systems like SWIFT and correspondent banking are plagued by inefficiencies, with high fees, delays, and limited transparency. These systems often operate on a first-come, first-served basis, leaving customers unsure about costs and timelines.&nbsp;
In contrast, stablecoins offer a decentralized alternative that enables direct, transparent, and cost-effective settlements. This makes them an attractive solution for payments and remittances, especially in regions where traditional banking is less accessible.
<h2 id="b-gaining-ground-as-a-global-financial-powerhouse-b">Gaining Ground as a Global Financial Powerhouse</h2>
Stablecoins are increasingly transforming financial behavior in emerging markets like Brazil, Turkey, Nigeria, India, and Indonesia. In these regions, many users turn to stablecoins to protect against local currency volatility, make payments, and facilitate cross-border transfers.&nbsp;
This is largely due to the ability to hold tokenized versions of stable currencies, such as the U.S. dollar, This provides an alternative to traditional banking systems, which can often be unreliable or inaccessible. Beyond these markets, stablecoins are also gaining traction in areas like payroll, trade settlements, and high-yield financial products.&nbsp;
With their market capitalization reaching $190 billion, <a href="https://thecoinrise.com/stablecoins-enters-spotlight-with-us-treasury-department-heres-why/'" rel="noopener noreferrer nofollow">stablecoins</a> are solidifying their position as major players in the digital asset space. Notably, fiat-backed coins like Tether’s USDT and Circle’s USDC dominate this market.&nbsp;
The post <a href="https://thecoinrise.com/stablecoins-to-claim-10-of-u-s-m2-and-fx-transactions-analysts-say/" rel="noopener noreferrer nofollow">Stablecoins to Claim 10% of U.S. M2 and FX Transactions, Analysts Say</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Stablecoins to Claim 10% of U.S. M2 and FX Transactions, Analysts Say

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