Stablecoins will see explosive growth in 2025 as world embraces asset class
The stablecoin market is projected to achieve significant milestones by the end of 2024, with expectations for mass adoption in 2025. In 2024, major stablecoin issuers like Tether and Circle explored alternatives to the US dollar, but adoption remained limited. Tether's USDt and Circle's USDC dominated the market, while algorithmic stablecoins struggled post-2022 collapses. The crypto market overall thrived, with Bitcoin reaching $100,000 and stablecoin issuance hitting new records. In 2025, regulated stablecoins are expected to rise, driven by financial institutions seeking profitability through fiat reserves. The EU's MiCA regulation will facilitate banks offering custody services for digital assets. Concerns about Tether's compliance may lead to a shift towards regulated alternatives like USDC. Additionally, local currency-backed stablecoins are anticipated to grow, integrating into banking systems. The market is expected to mature, with increased regulations and broader adoption, potentially doubling or tripling the capitalization of USDT and USDC and diversifying beyond dollar-centric options.
