Stablecoins continue to grow in demand globally, particularly in emerging economies. The Crypto Biz section explores stablecoins’ market dynamics, Tether’s profit record, UAE’s new crypto trading integration, and more.
Points
- Stablecoins meet significant demand, especially in emerging economies.
- Businesses and consumers are willing to pay premiums for USD-pegged stablecoins.
- Tether reports record profits and increased US Treasury holdings.
- UAE residents can now trade crypto directly with their bank accounts.
- Polymarket experiences a surge in betting volume amid the US election season.
Stablecoins are witnessing soaring demand worldwide, especially in emerging economies. A recent analysis by BVNK and the Centre for Economics and Business Research reveals that businesses and consumers across 17 countries are willing to pay an average premium of 4.7% to access USD-pegged stablecoins, with the figure rising to 30% in Argentina. By 2027, these countries are expected to spend $25.4 billion in premiums for stablecoin access.
Current inefficiencies in cross-border payment systems trap $11.6 billion in working capital due to settlement delays. However, stablecoins are anticipated to facilitate $2.8 trillion in cross-border payments by the end of this year. Circle’s USD Coin （USDC） saw a surge in trading volume in July, spurred by compliance with new European regulations. Meanwhile, Tether’s USDT maintains a 70% market share of the $164 billion stablecoin market capitalization.
“With the stablecoin market cap projected to grow from $160 billion to $1 trillion in the coming years, payment volumes could reach $15 trillion by 2030,” stated BVNK co-founder Chris Harmse.
Tether Reports Record Profits
Tether reported record-breaking profits of $5.2 billion for the first half of 2024, with US Treasury holdings increasing to $97.6 billion. At the end of July, USDT’s market capitalization stood at approximately $114 billion, with total reserves exceeding $118 billion. Tether’s Treasury reserve now surpasses the size of all but 17 of the world’s governments, including Germany, the UAE, and Australia. Tether is reinvesting a portion of its profits into adjacent industries, including sustainable energy, Bitcoin mining, AI infrastructure, and more.
UAE Banks Enable Direct Crypto Trading
Crypto exchange M2 has announced that