According to a new study by Bernstein, the stablecoin market is expected to explode in the next five years, growing from its current level of $125 billion to $2.8 trillion.
Stablecoin Market Expected to Grow 22x in Five Years
Stablecoins are cryptocurrencies pegged to fiat or other assets.
Analysts said that major global financial and consumer platforms are expected to issue co-branded stablecoins to promote value exchange on their platforms.
Facebook, for example, introduced its own stablecoin, Diem, to support its social networking and e-commerce businesses. Other potential stablecoin issuers include Amazon, Alibaba, Tencent, Apple, Google, and others.
The report also states that stablecoin regulation has more political support than cryptocurrency regulation because stablecoins can promote financial inclusion, cross-border payments and the digital economy.
However, the report also warns that stablecoins still face a number of challenges and risks, such as legal uncertainty, technical glitches, competitors and hacking.
*Not investment advice.
