Stablecoins support de-banks, a new generation of decentralized banks offering affordable, efficient, and transparent financial solutions, especially in high-risk areas.
Opinion of Maxim Sakharov, co-founder and CEO of WeFi.
Current markets are experiencing a tailwind from tariffs imposed by the US administration and retaliatory measures from trading partners. However, market proponents say that Trump's tariffs are primarily a negotiation strategy, and their impact on business and consumers will remain manageable.
Uncertainty in the market stimulates institutional interest
Inflationary pressures add to the uncertainty, which could cast doubt on the US Federal Reserve's forecast for rate cuts. Additionally, upcoming fiscal debates in Washington regarding the federal budget are also causing market nervousness.
Resolving the debt ceiling issue remains a pressing concern as the Treasury is currently relying on 'extraordinary measures' to meet the United States' financial obligations. The exact timeline for the exhaustion of these measures is unclear, but analysts expect they may run out after the first quarter.
Although the administration has proposed to lift the debt ceiling, this may face resistance from fiscal conservatives in Congress. According to a recent report, one of the sectors showing resilient growth is stablecoins, despite this macroeconomic uncertainty. A significant portion of the volume is attributed to flows of Tether USDt and USDC. Dollar-pegged stablecoins dominate the market.
Stablecoins started as an experiment—a programmable digital currency that would enable users to enter the cryptocurrency market and trade various digital assets. Ten years later, they have become a critical part of the broader digital financial infrastructure.
The market capitalization of stablecoins has now reached a record $226 billion and continues to grow. This growth is driven by demand in emerging markets. A recent report from ARK Invest states that dollar-pegged stablecoins dominate the market, accounting for over 98% of the stablecoin supply, while gold and euro-backed stablecoins occupy only a small market share.
Moreover, Tether USDt accounts for over 60% of the total market. ARK's research shows that the market will expand to include stablecoins backed by Asian currencies.
Recent: The US will use stablecoins to secure dollar hegemony — Scott Bessent.
Moreover, digital assets are experiencing a shift marked by 'stablecoinization' and 'dollarization'. Asian countries like China and Japan have sold record amounts of US Treasury bonds. Saudi Arabia has terminated a 45-year agreement on petrodollars, and BRICS countries are increasingly bypassing the SWIFT network to reduce dependence on the US dollar.
Bitcoin and Ether have traditionally been the primary entry points into the digital asset ecosystem. However, over the past two years, stablecoins have taken the lead, now accounting for 35-50% of transaction volumes on the network. Despite global regulatory hurdles, emerging markets have embraced stablecoins. In Brazil, 90% of cryptocurrency transactions are conducted through stablecoins, primarily for international purchases.
In a Visa report, Nigeria, India, Indonesia, Turkey, and Brazil are named as the most active stablecoin markets, with Argentina coming in second in stablecoin volume. Additionally, six out of ten purchases in the country were made using dollar-pegged stablecoins, with almost equal ratios between USDC and USDT.
This shift towards stablecoins in Argentina is driven by high inflation and the need for protection against the devaluation of the Argentine peso. People in countries with unstable currencies are turning to stablecoins such as USDT to protect their wealth.
De-banks and their role in high-risk areas
Stablecoins have paved the way for a new generation of financial services. For instance, stablecoins have laid the foundation for decentralized banks in the network, or de-banks, which use stablecoins as their native currency.
De-banks make digital banking and financial services accessible to everyone, even to those who do not meet strict account opening criteria. They also attract individuals who do not trust traditional institutions with their money. Users maintain full control over their funds through non-custodial accounts and enjoy real-time transaction transparency.
The decentralized nature of de-banks replaces intermediaries with smart contracts that directly link personal wallets to digital bank accounts. This approach reduces costs and speeds up transactions. Data on the network transparently retains every detail of the transaction. The result is a financial model that is both efficient and inclusive.
What's ahead
Analysts predict that the market capitalization of stablecoins will exceed $400 billion by 2025. De-banks are bringing new momentum to this growth by using stablecoins to stimulate economic growth and expand digital payment networks. They are opening new opportunities for cross-border trade and new avenues for financial access.
In the coming years, the combined growth of stablecoins and next-generation banks in the network will change the ways money is moved across borders and transactions are processed. The integration of blockchain on the backend and the foundation of stablecoins will help reduce fees, speed up payments, and expand access to financial services. This trend represents a departure from outdated systems and signals a more sustainable financial ecosystem.
Opinion of Maxim Sakharov, co-founder and CEO of WeFi.
This article is for informational purposes only and is not intended and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed here belong solely to the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.