Research Summary

The research report explores the growth and usage of stablecoins across different blockchain networks. Stablecoins are cryptocurrencies pegged to a stable asset, such as the US dollar or gold, designed to offer the stability of fiat currencies while leveraging the advantages of cryptocurrencies. The report highlights that the total market cap for all stablecoins was more than $128.58 billion as of June 21, 2023. Stablecoins are being used for a variety of purposes, including decentralized finance (DeFi), cross-border payments, trading, tokenization, borrowing and lending, and charity and philanthropy.

Actionable Insights

  • Stablecoins in DeFi: Stablecoins are a critical component of the DeFi ecosystem. They are used in liquidity pools where users can deposit cryptocurrencies and stablecoins to earn interest or swap tokens.
  • Stablecoins for Cross-Border Payments: Stablecoins are being used for fast and cheap cross-border payments, enabling users to avoid the high fees and slow transaction times associated with traditional cross-border payment methods.
  • Stablecoins in Trading: Stablecoins are being used for trading on cryptocurrency exchanges, enabling users to hedge against market fluctuations and maintain liquidity.
  • Stablecoins for Tokenization: Stablecoins are being used for tokenization of assets, such as real estate or gold, allowing for access to fractional ownership of assets without the need for intermediaries.
  • Stablecoins in Borrowing and Lending: Stablecoins are being used for borrowing and lending purposes, enabling users to access liquidity without selling their cryptocurrencies while also earning interest on their stablecoin holdings.
  • Stablecoins in Charity and Philanthropy: Stablecoins are being used for charity and philanthropic purposes, enabling donors to make quick and secure payments without worrying about the high transaction fees involved in cross-border payments.

Related Research