The post Stablecoins Offer A Safe Haven For Companies Entering The Crypto Market – Report appeared on BitcoinEthereumNews.com.

While Bitcoin’s (BTC) remarkable rise above $100,000 captured the attention of the financial world in 2024, a different segment of the cryptocurrency landscape is quietly gaining traction: stablecoins.  Mainstream financial players such as Visa, PayPal, and Stripe are increasingly investing in stablecoin projects—cryptocurrency tokens designed to maintain a stable value, typically pegged to the US dollar or other traditional currencies. Global Demand For Stablecoins Soars This burgeoning sub-sector of digital assets has proven to be remarkably lucrative. Issuers of stablecoins can now invest the reserves backing these tokens into short-term US Treasuries, which offer attractive yields.  Unlike the volatile nature of Bitcoin and other cryptocurrencies of the industry, stablecoins are being adopted globally for transactions, providing a sense of reliability amidst the chaos of the crypto markets. Rob Hadick, a general partner at Dragonfly, a digital-asset venture firm, highlighted the growing demand for stablecoins among major companies operating in underserved payment sectors.  “We’ve seen significant growth in demand from some of the largest companies in the world that participate in global contractor and employee payouts, trade finance, and remittance,” he explained. According to Bloomberg, the stablecoin market is poised for increased competition as its total market capitalization has surged to approximately $205 billion.  Tether Holdings Ltd.’s USDT remains the dominant player, boasting a market cap of around $140 billion. However, challenges loom as regulatory frameworks evolve.  The European Union’s Markets in Crypto Assets (MiCA) regulations require that all stablecoins listed on centralized exchanges (CEXs) be issued by entities holding an e-money license.  Circle Internet Financial Ltd., Tether’s key competitor, obtained this permit in July, while Tether has yet to apply, placing its future on exchanges at risk. Companies Seek New Revenue Streams Amid Market Volatility In the US, several companies are entering the stablecoin arena. Visa has launched its Tokenized…

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Filed under: News - @ January 5, 2025 5:08 am