Top 5 Reasons Why Stablecoins Will Explode in 2025

The stablecoin market has witnessed some remarkable records with issuers testing new coins outside of Tether (USDT) and Circle's USDC. In this context, Euro-backed stablecoins have entered the market, but users still prefer USDT and USDC. Now, let's see what new trends are approaching closer in 2025. When Bitcoin surpasses the $100,000 mark in 2024, the total issuance of Stablecoins reached a new record as Singapore recorded $1 billion in stablecoin payments, a figure that is likely to increase further as we enter the new year. 5 Top Reasons Why Stablecoin Will Explode in 2025 Global Legal Framework Supports the Adoption of Stablecoin In 2024, the Stablecoin market recovered 29% and reached a supply of 168 billion USD by mid-August, with USDT and USDC accounting for 90% due to their global adoption, as Hong Kong's experimental mechanism for issuing stablecoins is promoting integration into the existing cryptocurrency management framework. These regulatory changes will be implemented in 2025 when some countries like the UK and Japan, etc. are changing their laws to apply stablecoin. Governments around the world are trying to establish regulatory frameworks to maintain supervision and enable innovation in the adoption of stablecoins, such as Hong Kong, creating opportunities for financial institutions to innovate in stablecoins. The European Union has the Crypto Assets Market (MICA) managing the issuance of stablecoins across the EU, while the Financial Stability Oversight Council (FSOC) ensures financial stability by monitoring risks related to stablecoins. Japan has the Payment Services Act on operational requirements and reserves for stablecoin issuers. Meanwhile, UK Economic Minister Tulip Siddiq revealed in November that the UK government is targeting to introduce regulations for Stablecoin by early 2025. Experts see this as a move to address the situation of cryptocurrency companies shifting to the US due to Trump's policies. The Increase of Managed Stablecoins This year has demonstrated how managed Stablecoins can generate profits. The most prominent example is Tether (USDT), which increased by $5.2 billion in the first quarter of 2024 after investing reserves in US Treasury bonds. Through this strategy, a stable coin will be managed and released first, and then negotiated with a well-known cryptocurrency exchange for promotion. This leads to stable profits when users invest in fiat currency reserves. Cryptocurrency exchanges usually do not charge any commission for stable coins due to advertising features, which ultimately attracts traders. Even traditional financial giants find it too difficult to ignore this formula and have adopted stable coins. Changes in the European Market The stablecoin market is quite concerned about the status of USDT in Europe at the moment because it does not have the necessary MiCA license for compliance. In fact, many cryptocurrency exchanges are reportedly preparing to delist Tether for European users. If that happens, the stablecoin will lose a significant market share. On the other hand, this will open up a new direction for Circle's USDC, which has received regulatory approval. The MiCA framework encourages domestic companies to participate in the market, as seen in the increasing issuance of stablecoins backed by the Euro in 2024. This will further enhance competition in this field, shifting the market away from options focused on the US dollar. The Increase in Coordinating Stablecoin Payments Cryptocurrency companies like BVNK will emerge as prominent players in 2025 due to their stablecoin payment coordination feature, enabling greater adoption of digital assets in areas such as paying salaries to millions of freelancers worldwide. This infrastructure will facilitate easier sending and receiving of stablecoins, similar to banking transactions. This year, payments using stablecoin as a B2B payment method have significantly increased as businesses and PSPs use this digital asset to pay merchants and international partners. This figure will further increase by 2025 as market platforms ensure that their servers, sellers, contractors, and global creators are paid in stablecoin. Stablecoin Will Infiltrate Into Local Fiat Currency Territory Last but not least, an important trend is the dominance of Stablecoins in the local currency market as currencies are pegged to the local currency. This is evident in the way the UAE central bank has launched a stablecoin backed by AE Dirham Coin, which is the first stablecoin managed by a central bank in the world. Local stablecoins are likely to be integrated into the banking system of that legal area as their economies digitize. This will further develop the stablecoin market. Regulations such as MiCA have been established to enforce mandatory licensing for stablecoin issuers, enabling banks to provide custody services and acting as a catalyst for integrating stablecoins into the traditional financial system. DYOR! #Write2Win #Write&Earn $FDUSD {spot}(FDUSDUSDT)