• Private wealth management company Bernstein has projected that the stablecoin market will grow by 2,140% in the next five years.
• The total crypto markets cap is at $1.19 trillion and will likely skyrocket as more institutional investors get involved with virtual currencies.
• Big firms such as PayPal have launched US Dollar backed stablecoins to help facilitate global payments with the added utility of linking payments to web3 and web2 markets.
Stablecoin Market To Reach $3 Trillion By 2028
Private wealth management company Bernstein has predicted that the stablecoin market will experience a growth of 2,140% in the next five years, reaching a total market capitalization of nearly $3 trillion by 2028. Currently, the total crypto markets cap is at $1.19 trillion and is expected to increase drastically as institutional investors become more involved in virtual currencies.
Big Firms Driving Stablecoin Growth
The growth of stablecoins has been driven largely by big traditional financial firms and crypto-based companies launching their own USD-backed stablecoins for facilitating global payments. Most recently, PayPal launched PYUSD which links payments to both web3 and web2 markets. Furthermore, multiple countries are launching Central Bank Digital Currencies (CBDCs) which further validates stablecoins as an independent asset class that exists apart from government control.
Integration Critical For Stablecoin Growth
In order for stablecoins to reach their full potential, analysts believe it is essential for them to be integrated into consumer platforms which could give them access to wider distribution beyond multiple cryptocurrency platforms. This would create a “hyper-fast financial settlement layer” that could open up new possibilities within the space.
Regulation Aiding Stablecoin Development
Several jurisdictions have introduced detailed regulations specifically tailored towards governing operations within the stablecoin sector; most notably, Europe’s Market In Crypto Asset (MiCA) Regulation which offers legal protections for users of cryptocurrencies and other digital assets operating within Europe’s Economic Area (EEA).
Overall, Bernstein’s report highlights how much potential there is for growth in the stablecoin sector over the next five years if current trends continue or even accelerate due to increased integration into consumer platforms and regulatory support from various governments around the world. If this forecast comes true then it could lead to huge volume increases across all cryptocurrency markets due to rising demand for these digital assets from institutional investors