Stablecoins

The Rise of Stablecoins in Emerging Markets

Thursday. August 22 at 9:30 AM

1 min. read

Businesses and consumers in 17 emerging markets are willing to pay a premium of 4.7% over the standard dollar price to access stablecoins, with the figure rising to 30% in countries like Argentina. A recent analysis by the Centre for Economics and Business Research (CEBR) and BVNK projected that these premiums will reach $25.4 billion by 2027. Stablecoins have gained significance in global finance, with a market capitalization of $165 billion as of mid-2024. Tether (USDT) and USD Coin (USDC) are the two largest stablecoins, with market capitalizations of $83 billion and $28 billion respectively. These stablecoins have become essential for financial transactions in regions with unstable local currencies. They have helped mitigate the adverse effects of currency volatility in emerging markets, providing a reliable store of value and enabling faster cross-border payments. The report forecasts that stablecoin payment volumes will reach $15 trillion by 2030, with the market cap potentially exceeding $1 trillion.

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Growth of USD Coin in 2024

Wednesday. January 15 at 11:00 AM

In 2024, Circle's USD Coin (USDC) experienced significant growth, surpassing other stablecoins in market capitalization. The growth of USDC, valued at $1.00, increased by 78% year-over-year, outpacing global stablecoins. This growth was attributed to regulatory clarity, blockchain scalability, and a focus on trust and transparency. Despite a decline in 2023 due to banking issues, USDC's market value surged by 79% in 2024, reaching $43.9 billion. In comparison, Tether's USDT saw a 50% increase in market value. USDC's adoption was particularly strong in regions with regulatory clarity, such as the European Union. Circle anticipates further regulatory developments in countries like the UK, Brazil, Singapore, and Japan in 2025. The mission of USDC is to provide services to unbanked populations globally, with key markets in regions with high remittance activity like Latin America, Africa, and Southeast Asia.

Stablecoins

Tether to Relocate to El Salvador

Tuesday. January 14 at 5:00 AM

Stablecoin issuer Tether has announced its plans to move its headquarters and subsidiaries to El Salvador after obtaining an operating license in the country. The company cited El Salvador's progressive policies, favorable regulatory environment, and growing Bitcoin community as reasons for the relocation. Tether's CEO, Paolo Ardoino, expressed that this move will enable them to establish a new base, encourage collaboration, and focus on emerging markets. The decision to move followed reports of Ardoino and Tether's COO, Claudia Lagorio, acquiring real estate and becoming citizens of El Salvador in 2024. Since El Salvador's President Nayib Bukele declared Bitcoin as legal tender in 2021, Tether has been actively involved in the country, including contributing to renewable energy projects. Despite the positive impact of BTC adoption, Bukele acknowledged that the expected benefits have not fully materialized. The government currently holds over 6,000 BTC, valued at more than $550 million. Bukele, known for his controversial leadership style, has received both praise for reducing crime rates and criticism for alleged human rights violations.

Stablecoins

Ripple's RLUSD Stablecoin Expansion

Thursday. January 9 at 2:00 AM

Ripple's president, Monica Long, anticipates the listing of Ripple USD (RLUSD) stablecoin on major crypto exchanges soon. In an interview with Bloomberg on Jan. 7, Long confirmed Ripple's efforts to secure additional exchange listings for RLUSD. The stablecoin is currently available on various platforms like Bitso, MoonPay, and CoinMina. RLUSD, pegged 1:1 to the US dollar, was launched on Dec. 17 and has a market cap of $71.8 million. The majority of trading volume for RLUSD is on Bullish exchange. Long highlighted the growing demand for stablecoins, emphasizing their role in the crypto market. Additionally, Ripple partnered with Chainlink to integrate price feeds for RLUSD on Ethereum and the XRP Ledger. The collaboration aims to provide accurate pricing data for DeFi applications. Long also mentioned the possibility of an XRP exchange-traded fund in the future, with companies like WisdomTree already filing for approval.

Stablecoins

Ethena Labs Unveils 2025 Roadmap for Telegram-based Payment App

Saturday. January 4 at 5:00 AM

Ethena Labs recently revealed its roadmap for 2025, introducing a payment and savings app on Telegram that utilizes the sUSDe stablecoin. The platform aims to offer a neobank experience within the messaging app, enabling users to send, spend, and save sUSDe directly. Integration with Apple Pay will allow for seamless transitions between savings and mobile payments. Ethena plans to transform into Ethena Network to compete with Tether, focusing on on-chain financial innovation. The launch of iUSDe in February, built on sUSDe, will feature token-level transfer restrictions. Ethena's goal for the first quarter of 2025 includes partnering with traditional finance institutions to distribute iUSDe. The company has experienced significant growth, becoming the second-fastest protocol to reach $100 million in revenue. Ethena also introduced USDtb, a stablecoin backed by BlackRock's BUIDL fund, and partnered with World Liberty Financial. The roadmap hints at upcoming stablecoin-powered products like perpetual products and prediction markets.

Stablecoins