The growth of stablecoins is changing the global financial landscape, as illustrated by Huaxia Fund CEO Gan Tian, emphasizing their rapid growth and surpassing 40 years of Visa's transaction volume in just five years. This highlights a shift in currency usage.
The rise of stablecoins marks a significant impact on the traditional financial system, with expectations of global issuance reaching $235 billion by 2025, which will radically change settlement models, according to industry leaders. The current momentum signals profound changes in transactional practices.
Gan Tian's announcement indicates that stablecoin issuance is expected to exceed $235 billion by May 2025. This surge reflects an increased reliance on digital currencies for transactions worldwide. Such rapid growth in issuance demonstrates a decreasing dependence on traditional financial mechanisms.
Significant changes are anticipated as stablecoins have already surpassed 40 years of Visa's transaction volume in just five years. This rapid growth demonstrates the critical position that stablecoins now occupy in both the cryptocurrency and traditional financial markets, suggesting large-scale integration of digital currencies. Market experts and financial sector leaders responded by acknowledging the transformative potential of stablecoins. In particular, Xiao Feng, Vice Chairman of Wanxiang Holdings, recognized these digital assets as a significant evolution of currency, laying the groundwork for widespread adoption.
"Stablecoins represent a new stage in the evolution of currency, which can be termed 'tokenized currency.' Based on distributed ledger technology, stablecoins enable peer-to-peer transactions without the need for intermediary institutions to reconcile information... The emergence of stablecoins also marks the rise of the digital twin trend, which implies the transfer of real assets to the blockchain for tokenization." - Xiao Feng, Vice Chairman of Wanxiang Holdings
Historical context, price data, and expert analysis
In just five years, stablecoins have provided a volume three times that of traditional payment systems, confirming their utility and adaptability in an evolving financial ecosystem.
According to CoinMarketCap, Tether USDt (USDT) priced at $1.00 has a market capitalization of approximately $157.61 billion, corresponding to a dominance of 4.73%. Its recent trading volume reached $51.69 billion, with a slight negative price movement over the past 24 hours. These statistics illustrate the significant role of USDT as a leader among stablecoins in the digital currency market.
Findings from the Coincu research team suggest that the growing use of stablecoins is likely to accelerate efforts toward financial digitization. The regulatory framework is evolving to adapt to the expanding market for stablecoins, facilitating further integration into traditional financial infrastructures. These platforms could stimulate growth in innovations in cross-border transactions.
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