Below is a guest post Maksym Sakharov, Co-founder and group CEO of Wefi.
The current market is experiencing tailwinds due to tariffs imposed by the US administration and retaliation measures from trading partners. But so far, market supporters have said Trump's tariffs are primarily a negotiation strategy, and its impact on businesses and consumers is easy to manage.
Market uncertainty drives institutional interest
In addition to uncertainty, there is inflation pressure that could challenge the Federal Reserve's tariff prospects as inflation still exceeds the Fed's 2% target. Additionally, the pressing financial debate in Washington over the federal budget has also sparked unrest in the market.
Resolving debt caps remains a pressing issue as the Ministry of Finance currently relies on “extraordinary measures” to fulfill its financial obligations. The exact timeline for when these measures will be exhausted is unknown, but analysts expect it could go out after the first quarter.
The administration has proposed to eliminate the debt cap, which could face resistance from fiscal conservatives in Congress. Despite these macroeconomic uncertainties, one sector experiencing stable growth is stable; According to recent reports. Much of the volume is driven by USDT and USDC flows.
Dollar-covered stub coins dominate the market
Stablecoins began as an experiment as a programmable digital currency that allowed users to enter the crypto market and trade a variety of digital assets. Ten years from now, they are a key part of the broader digital financial infrastructure.
the current, Stablecoin's Market Cap It stands at a record $226 billion and continues to expand. Demand in emerging markets drives this growth. According to the recent ARK Invest Reportdollar-covered stubcoins dominate the market. They account for more than 98% of Stablecoin's supply, with gold and euro-backed stubcoins sharing only a small portion of the market.
In addition to this, Tether's USDT accounts for more than 60% of the total market. Ark's research It suggests that the market will expand and include the ridiculous and ridiculous things that Asian currencies have been put in bags.
In addition, digital assets have undergone a shift marked by “stabilization” and “dollarization.” Asian countries like China and Japan are offloading record volumes of the US Treasury. Saudi Arabia has ended its 45-year Petrodler agreement, and BRICS countries are increasingly bypassing their rapid networks to reduce their dependence on the US dollar.
Traditionally, Bitcoin and ether served as major entry points into the digital asset ecosystem. However, over the past two years, Stablecoins I've ledcurrently represents 35% to 50% of the transaction volume on the chain.
Emerging markets are making big bets on stubcoin
Despite global regulatory headwinds, emerging markets are adopting stubcoins. In Brazil, 90% of crypto transactions It is mainly done through Stablecoins, which are used for international purchases.
visa Report Ranking Nigeria, India, Indonesia, Turkey and Brazil as the most active stubcoin markets, and Argentina ranks Number 2 Stablecoin Holdings. moreover, 6 out of 10 purchases In this country it was made using stub coins that are fixed in roughly equal dollars between USDC and USDT.
This shift to Argentina's absurdity is driven by the need to protect against high inflation and the devaluation of the Argentine peso. Clearly, in countries with unstable currencies, people turn to stable things like USDT to protect their wealth.
In addition to facilitating cross-border transactions, this adoption provides a hedge against local currency volatility. This illustrates the serious challenges for the outdated financial system.
The future of stubcoin
Analysts predict that Stablecoin Boom in 2025 will boost its market capitalization to more than $400 billion. The forecast suggests that Stubcoin could reach a market capitalization of $3 trillion over the next five years. Most importantly, financial institutions are taking part in this trend. Stripe recently completed its $1 billion acquisition of Bridgea startup that builds Stablecoin infrastructure.
Traditional banks such as BBVA are planning to launch their own stubcoin by the end of 2025. He said digital currencies can reduce reliance on payment intermediaries, reduce global costs and improve efficiency.
Last year, Commerce candidate Howard Lutnick said Stablecoins would help support the dollar. Major Wall Street players such as Bank of America, BlackRock, BNY Mellon, CBOE, Charles Schwab and Citi have invested in the sector. Their participation shows that Stablecoins are set up to transform global payments.
The trend is clear. Stubcoins are no longer a cryptographic experiment. It has become a central part of the financial infrastructure of emerging markets, moving money globally. As adoption accelerates, the question is not whether stubcoins convert payments, but whether they are fast enough to, along with, or even replace, with the outdated financial system.
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