Stablecoins are about to get a huge boost. Like, a $719 trillion boost. That’s the projected ‘adjusted’ stablecoin volume by 2035, according to blockchain analytics firm Chainalysis. And the catalyst for this growth? Baby boomers kicking the bucket.
The Boomer Effect
As boomers die off, they’ll transfer a whopping $100 trillion in wealth to their offspring. And let’s be real, younger people are way less crypto-phobic than their parents. They’ll be more likely to spend their inherited wealth via blockchain-based rails, which will give stablecoins a huge boost.
But that’s not all. Chainalysis claims its ‘adjusted’ stablecoin volume, which focuses on payments, remittances, and settlement, shows compound annual growth of 133% since 2023. And with ‘point-of-sale saturation’ as merchants and tradfi institutions embrace stablecoin tech, we could see stablecoin volume hit $1.5 quadrillion. That’s higher than the $1 quadrillion that all global cross-border payments currently account for.
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Stablecoin Wars
The stablecoin market is heating up, with Tether’s USDT and Circle’s USDC leading the charge. But while USDT has a larger market cap, USDC’s transaction volume is much higher. Over the past 24 hours, USDC’s transaction volume was over $198 billion, more than triple USDT’s $60.4 billion. And yet, USDC’s number of transactions was only slightly larger than USDT’s.
This divide between the two largest stablecoins by market cap is interesting. USDC’s dominant role in decentralized finance (DeFi) protocols and agentic AI payments means its transactions are smaller, but more frequent. USDT, on the other hand, is leading the charge in crypto-backed credit/debit cards.
Circle’s Move
Circle isn’t resting on its laurels. The company has just announced a new feature of its Circle Payments Network (CPN) called CPN Managed Payments. This service allows payment service providers, fintechs, banks, and institutions to access the speed and efficiency of regulated digital dollars without managing digital assets directly.
Circle CEO Jeremy Allaire said the new CPN service will address financial institutions’ need to operate fiat-to-fiat and fiat-stablecoin payment flows without needing to stand-up and operate their own wallets and blockchain infrastructure. This is a big move, and it could help stablecoins go mainstream.
JPM’s Blockchain Play
JPMorgan is also making moves in the blockchain space. The company has inked a deal with Mitsubishi, and Argentine banks are testing JPM Coin. This is a big deal, as it shows that traditional financial institutions are starting to take blockchain seriously.
According to a report by bloomberg.com/news/articles/crypto-market-update-123, JPMorgan’s blockchain efforts are part of a larger trend. More and more traditional financial institutions are exploring the use of blockchain technology, and stablecoins are at the forefront of this movement.
The Future of Stablecoins
So, what does the future hold for stablecoins? One thing is for sure: they’re not going away anytime soon. With the boomer effect, point-of-sale saturation, and traditional financial institutions embracing blockchain tech, stablecoins are poised for huge growth.
And as the market continues to evolve, we can expect to see more innovation and adoption. Whether you’re a fan of USDT or USDC, one thing is clear: stablecoins are the future of finance. So, ape in, and let’s ride this wave to the moon.