Stablecoin Market to Hit $2 Trillion in 2028 Even as Velocity Doubles: Standard Chartered
Standard Chartered says stablecoin velocity has doubled in two years, driven by USDC's new use cases in TradFi and AI payments.
Standard Chartered has projected that the stablecoin market will reach $2 trillion by 2028, despite experiencing a significant acceleration in transaction velocity. According to the banking giant's latest research, stablecoin velocity has doubled over the past two years, with much of this growth attributed to USD Coin's (USDC) expanding applications in traditional finance and artificial intelligence payment systems.
The surge in stablecoin velocity indicates that digital dollars are being used more frequently for transactions rather than held as static investments. This trend reflects the growing integration of stablecoins into mainstream financial infrastructure, moving beyond their original role as crypto trading pairs. USDC has emerged as a key driver of this shift, finding new applications in traditional financial services and facilitating payments for AI-related services and transactions.
The projected growth to $2 trillion represents a substantial expansion from current market levels, suggesting widespread institutional and commercial adoption of stablecoins. Despite the increased velocity potentially reducing individual token holding periods, Standard Chartered's forecast indicates that overall demand will more than compensate for this effect. The bank's analysis suggests that stablecoins are transitioning from speculative instruments to functional payment infrastructure.
Industry observers will be monitoring whether regulatory clarity and traditional financial institution adoption continue to drive this growth trajectory, particularly as central bank digital currencies emerge as potential competitors.
Source: Decrypt
