Stablecoins surge, challenging traditional payment giants (07/2024)

According to recent data, the three largest stablecoins – Tether, USDC, and DAI – processed a combined $1.369 trillion in the past 30 days, exceeding Visas monthly average of $1.23 trillion in 2023.

Given that in just ~6 years, stablecoins have surged from virtually nonexistent to now surpassing giants like Visa

This surge in stablecoin adoption is driven by their ability to provide instant, low-cost, and final settlements, eliminating the need for credit intermediaries. As crypto technology matures, its value proposition becomes clearer, attracting both users and businesses looking to optimize their operating efficiency and profits.

That said, it’s not surprising that major payment providers like PayPal and Stripe are now integrating stablecoins into their platforms, thus effortlessly onboarding users onto the blockchain. This strategic move brings crypto to the mainstream, with users enjoying a familiar interface while benefiting from the advantages of blockchain technology.

Zooming out and looking at the big picture, the potential for stablecoin legislation in the U.S. could further accelerate adoption. If Congress passes comprehensive stablecoin legislation later this year, it could prove to be a significant milestone for the crypto ecosystem, enabling traditional financial institutions to enter the space and introduce millions of people to the benefits of crypto wallets, stablecoins, and blockchain-based payment rails. Huge.

What’s next? If we were a bit cautious last year, now we can confidently say - the rise of stablecoins will have significant implications for the broader FinTech and finance space. As more users and businesses adopt stablecoins for real-time payments, traditional payment providers will face increased competition and pressure to innovate. This will lead to a more efficient, cost-effective, and inclusive global payment system, with stablecoins playing a central role. More importantly, as regulators catch up and provide clarity, and as more users and businesses embrace the benefits of stablecoins, we can expect to see a new era of financial innovation and inclusion unfold.

About ECEBiS

At ECEBiS you are going to understand what will change the trajectory of the financial industry. You will develop a transversal view on the forces that are shaping the future financial industry.

From payments and lending to investment and money management, tech providers are actively shaping the future of the financial landscape - even pushing the boundaries of currency itself. You might evaluate the impact of robo-advising on health management and examine portfolio recommendations from a diversified set of RAs and attempt to identify the factors behind proposed splits between asset classes.

ECEBiS is a platform in academic research on new business models and innovative products. We investigate in fast moving sectors that are reshaping the financial world of tomorrow and pioneering new ways of doing business. We want to attract outstanding ECEBiS students in finance with experiences and exposures, who intend to

Doctorate of Business Administration (DBA) in Finance (online, 3 years part-time)

• develop knowledge on challenges that shape the future of financial industry

• engage with a program that offers the convenience of online learning with the benefits of accreditation and global reach.

• raise awareness on the importance of fintech and sustainability in finance

• identify the best practices in the financial industry to spread positive changes

• Go beyond the virtual classroom and network with other ambitious executives and entrepreneurs as you expand your credibility and expertise in the world’s most transformative fields.