- Stablecoin projects by Visa and Mastercard explore new market territories.
- Stablecoin supply could grow to USD 2 trillion by 2028.
- Shift in trading towards non-USD stablecoins impacts crypto liquidity.
Major financial institutions and regulators aim to challenge the U.S. dollar’s dominance in the crypto sector through the adoption and regulation of multicurrency stablecoins globally.
This development could diversify trading pairs and shift market dynamics, affecting DeFi liquidity and USD-centric operations.
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Major institutions including Visa and Mastercard are piloting regulated multicurrency stablecoins, signaling a shift away from the U.S. dollar’s dominance in the crypto space. These moves are part of broader regulatory frameworks being shaped by actors like the US Treasury and the European Central Bank.
The GENIUS Act… introduces a federal framework which, while broadly in line with the EU’s Markets in Crypto-assets (MiCA) Regulation in spirit, … is more lenient in some areas. — European Central Bank Official, ECB
The launch of regulated stablecoins challenges USD-centric markets. Authorities, led by the US Treasury and Federal Reserve, collaborate with industry players such as the Digital Dollar Project. Their actions emphasize new global digital asset landscapes.
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The introduction of multicurrency stablecoins could significantly impact trading pairs and on-chain liquidity, shifting reliance away from dominant USD-backed assets like USDC and USDT. This transformation is expected to enhance global market maturity.
Financial institutions, fintech companies, and regulators are coordinating efforts, potentially shifting remittance flows and corporate treasuries from traditional USD reliance. Data suggests a $200 billion market share for non-USD stablecoins by 2030.
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Regulatory frameworks like the GENIUS Act and MiCA Regulation are solidifying the role of stablecoins globally (Text of Senate Bill 394). Historical precedents show the potential for large-scale change, akin to the impact of Tether’s launch.
Stablecoins claim foundational roles in global liquidity by integrating with traditional financial markets. Metrics like Total Value Locked (TVL) may reflect a move from US-centric pairs to diversified fiat-backed options, with implications for DeFi protocols and governance tokens.
