Analyst: Stablecoins Could Represent 10% of U.S. M2 and Forex Transactions

Geoff Kendrick, Head of Digital Asset Research at Standard Chartered Bank, and Nick Philpott, Co-founder of Zodia Markets, have highlighted the growing use of stablecoins beyond trading collateral. Stablecoins are increasingly utilized in cross-border payments, payroll, trade settlements, and remittances. Their adoption is particularly notable in emerging markets such as Brazil, Turkey, Nigeria, India, and Indonesia.

According to a YouGov survey, 69% of users employ stablecoins as a currency substitute, 39% for purchasing goods and services, and another 39% for cross-border payments. Users favor tokenized assets representing fiat currencies like the U.S. dollar, reducing reliance on traditional bank accounts.

The total market capitalization of stablecoins has reached a record high of $190 billion, dominated by USDT (73%) and USDC (21%).