Major global financial and consumer platforms are expected to issue co-branded stablecoins resulting in significant growth for these cryptocurrencies, the report said.
The stablecoin market is expected to grow to $2.8 trillion of tokenized digital currency in the next five years from $125 billion today, broker Bernstein said in a research report Wednesday.
Integration with consumer platforms will lead to a “growth flywheel” for stablecoins – a type of cryptocurrency pegged to another asset, such as the U.S. dollar – allowing them to capture users and grow distribution beyond crypto native platforms, the report said.
“We expect major global financial and consumer platforms to issue co-branded stablecoins to power value-exchange on their platforms,” analysts led by Gautam Chhugani wrote.
Just this week, payments giant PayPal (PYPL) said it was entering the crypto market with its own dollar-pegged stablecoin, PayPal USD (PYUSD). This is a first for a major financial company. The Ethereum-based token will be available first on PayPal and then on Venmo, and can be exchanged for dollars at any time.
Stablecoins will be powered by a “hyper-fast financial settlement layer (layer 2 or centralized consumer platforms)” on public blockchains such as Ethereum, the note said.
Growth will be led by “regulated, onshore stablecoins.”
Link: https://www.coindesk.com/markets/2023/08/09/stablecoin-market-to-grow-to-almost-3t-in-next-5-years-bernstein/?utm_medium=referral&utm_source=feedly&utm_campaign=headlines
Source: https://www.coindesk.com
