Stablecoins like USDC and USDT are starting to take a significant share in the financial landscape, now accounting for 1.1% of the US money supply. This raises discussions about their potential to reshape global finance.
Surge in Stablecoin Popularity
There has been a sharp increase in the supply of stablecoins over the past decade, which parallels the long-term growth of the US dollar volume. A chart illustrates this trend, showing how quickly blockchain-based digital dollars are integrating.
Future Projections
According to Token Terminal, the ratio of stablecoins to total money supply may continue to rise. "Many stablecoin startups will contribute to this ratio getting closer to 100%," the post notes, highlighting the industry's ambitions to integrate programmable digital assets into mainstream financial infrastructure.
Impact on the Financial System
The current situation aligns with broader developments in the space, including stablecoin integrations by Visa and Mastercard, the growing use of USDC, USDT, and PYUSD in transactions, as well as governments exploring CBDC and stablecoin regulations.
Thus, even a modest 1.1% share indicates a significant shift in how value is stored and transferred, which could lead to deeper integration of stablecoins into the financial system.