Over the next five years, the total market capitalization of stablecoins will rise from $125 billion to $2.8 trillion, CoinDesk reports, citing Bernstein’s report.
Analysts believe that integration with various platforms will serve as a ‘growth engine’ for dollar-pegged digital assets.
“We expect that major financial and consumer platforms will jointly issue stablecoins to enable the exchange of value,” wrote Gautam Chhugani, a company expert.
Representatives at Bernstein stressed that ‘stablecoins’ will operate at a ‘super-fast level of settlements’, i.e., actively using Layer-2 solutions on Ethereum.
The segment’s growth, they argue, will be based on ‘regulated, onshore stablecoins’. In support of the thesis, analysts cited Singapore, Hong Kong and Japan, where pilots with ‘stablecoins’ and CBDC are being piloted.
As reported, PayPal launched the stablecoin PYUSD. The issuer was Paxos.
Crypto-community members disagreed on the prospects for PYUSD. Some believe the new asset will promote mass adoption of cryptocurrencies; others criticized PayPal’s new instrument for centralization, potentially high fees and an outdated Solidity version.