Stablecoins settled $10.8T worth of transactions in 2023, of which $2.3T were related to organic activities including payments and cross-border remittances ππΈ, among others.
We believe stablecoins could be a vital use case for the real economy, leading to further disruption among incumbents in the payments space.
Todayβs payment giants suffer from major disadvantages, including high transaction costs π°, slower settlement times β³, and limited transparency π, albeit there are tradeoffs to stablecoins too.
As the payments landscape continues to evolve, traditional banking rails, credit cards π³, and even mobile payments π± are facing more pressure to adapt to the changing needs of their customers. Stablecoins aim to bridge the volatile crypto world with traditional finance by maintaining price stability, mainly by being pegged to the USD π΅ (for the majority of stablecoins). But these tokens have really only started to be utilized for lower-cost money transfers β at least at scale β over the last 2-3 years, despite this sector officially launching in 2015. Although they have some key comparative advantages over incumbents in terms of speed and cost, stablecoins still need to be integrated with existing financial systems to facilitate their use in everyday transactions.
