A new study by Vedang Vatsa published in the SPG Market Intel research series examines the impact of stablecoins on the global financial system.
The Role of Stablecoins in the Financial Sector
In the paper titled ‘Stablecoins in the Modern Financial System,’ Vatsa analyzes how these digital assets are transforming global payments, accounting for $27 trillion. The research highlights stablecoins as a cornerstone of digital finance, supported by an increase in market capitalization from $132 billion in January 2024 to $227.4 billion by March 2025.
Growth Trends and Geographic Differences
The 72% increase underscores the rising popularity of stablecoins in cross-border payments and decentralized finance (DeFi). According to the study, stablecoin transaction volumes reached $27.6 trillion by December 2024, surpassing the combined payment volumes of Visa and Mastercard by 7.7%. Vatsa also points to geographical differences in adoption, with USDT dominating in Asia and Europe, while USDC leads in North America.
Risks and the Future of Stablecoins
Nonetheless, the research raises important issues, such as risks of depegging and regulatory uncertainty, urging the development of robust policy frameworks to ensure financial stability. Vatsa emphasizes that the stability of stablecoins, achieved through fiat or crypto collateral, makes them an essential part of financial infrastructure, especially during weekends.
Vatsa's work not only highlights the potential of stablecoins but also opens the discussion about their role in shaping the future of finance.
