The post Stablecoin Adoption Is ‘Exploding.’ Here Is What’s Next for This Red Hot Sector appeared on BitcoinEthereumNews.com.

For the past few years, stablecoins have been defined by a narrow reality: essentially a two-horse race between Tether’s USDT and Circle’s (CRCL) USDC, with most activity concentrated on crypto-native exchanges. What comes next looks materially different, Alchemy co-founder and President Joe Lau told CoinDesk in an interview. The near-term trajectory for stablecoins has lots of directions, Lau said, but one theme dominates: stablecoin adoption is “exploding.” The reason, he argued, is that stablecoins deliver tangible advantages that traditional payments and banking systems struggle to match, most notably 24/7 settlement and digital-native money movement. “Stablecoins and deposit tokens are rapidly becoming the consumer and enterprise layers of the modern internet-native financial system. With this foundation, money can move with the safety of the banking system and the speed of the internet,” Lau said. Banks are increasingly evaluating stablecoins, he said, alongside fintechs building money-movement and payments products. Lau pointed to payment platforms and processors, highlighting Stripe’s activity in the space, as well as payroll providers and corporate treasury solutions that are now considering stablecoins as part of their operational stack. Stablecoins are cryptocurrencies pegged to assets like fiat currencies or gold. They underpin much of the crypto economy, serving as payment rails and a tool for moving money across borders. USDT is the largest stablecoin, followed by USDC. Total stablecoin market capitalization reached $300 billion in September, a 75% increase from a year earlier, according to a report from Morgan Stanley Investment Management. Wall Street giant Citi (C) said the stablecoin market is growing faster than expected. This prompted the bank to recently lift its 2030 forecast for issuance to $1.9 trillion in its base case and $4 trillion in a bull case, up from $1.6 trillion and $3.7 trillion, respectively. Lau also said that regulatory clarity is drawing more…

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Filed under: News - @ December 6, 2025 2:28 pm