Standard Chartered Analysts Predict Stablecoins to Represent 10 Percent of the US Economy in the Future!

Standard Chartered and Zodia Markets analysts predict that stablecoins will see significant growth in adoption, potentially representing 10% of US M2 transactions in the future.

Standard Chartered and Zodia Markets Estimate Stablecoin Usage Could Reach 10% of US M2 and FX Transactions

Geoff Kendrick, Head of Global Digital Assets Research at Standard Chartered, and Nick Philpott, co-founder of Zodia Markets, said in a report: “Currently, stablecoins account for only 1% of US M2 transactions and only 1% of foreign exchange transactions, but as the industry becomes more legitimized, by every measure “A move towards 10% is possible,” he said.

M2 money supply is an important measure of the total money supply, which includes all money in circulation in an economy as well as other assets that can be easily converted into cash.

According to analysts, the primary driver of this growth will be the regulation of stablecoins in the US. During the Biden administration, three major bills were introduced to create regulatory frameworks for banks to issue stablecoins, but little progress has been made.

But Kendrick and Philpott think the new Trump administration has the potential to make more significant progress on stablecoin regulation, which could accelerate the industry’s development.

The Standard Chartered report noted that stablecoins are increasingly being used beyond just commercial collateral, with increasing applications in cross-border payments, payroll, commercial settlement and remittances.

Citing a survey by YouGov, the report stated that stablecoins are gaining traction in emerging markets, particularly Brazil, Turkey, Nigeria, India and Indonesia.

*This is not investment advice.