Stablecoin Adoption as International Settlement Mechanism?

Reuters

Hey folks.

According to a research report by broker Bernstein on Tuesday, the market of stablecoins are growing and these cryptos are being adopted for international settlements with payment firms, among the early users are fintech companies and consumer platforms.

The supply of stablecoin currently stands at $150 billion notes Bernstein. The stablecoin market is dominated by Tether (USDT) and USD Coin (USDC) that have shares of 75% and 22% respectively.

According to analysts Gautam Chhugani and Mahika Sapra, the value of stablecoins settled on the blockchain indicates strong adoption of digital dollar with the crypto trading ecosystem as well as a cross-border payments currency, pointing out that the annualized value transferred in Q1 2024 was $6.8 trillion, which is equivalent to the high of ~$7 trillion in 2022.

There have been signs of adoption of stablecoin by payment firms like PayPal, Visa and consumer fintech platforms.

In blockchain payments, Solana is leading the field but has scalability issues, according to the report.

Talking of Hive platform's own Stablecoin Hive Backed Dollar (HBD), in order for it to compete with the top performing stablecoins out there in the market, it would need to put some good work. It's not impossible but it would be difficult to get there competing with the top Stablecoins in the market.

Any thoughts?

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