Stablecoin payments have increased by 70% since the introduction of US regulations in July, reflecting a robust shift in how consumers and businesses engage with digital currencies. Over $10 billion moved through stablecoins in August alone, double February’s $6 billion, according to blockchain platform Artemis. It is an indicator of increased adoption and usage of stablecoins as a payment medium in real life.
Rise of Stablecoin Payments
Demand for stablecoin payments has been driven by the recent signing of the Genius Act, which imposed federal regulations on issuers. The legislation required stable coins to be collateralized with highly liquid assets, like Treasury bills, as a measure to stabilize them. Institutions are thus now using the utilization of stablecoins in a bid to avoid traditional banking latency and the expense of transactions.
According to the same Artemis report, business-to-business stablecoin payments make up the largest share of payments that are stable coin at $6.4 billion per month. This represents a whopping 113% increase from February. This shift towards the utilization of stable coins in business payments is a gigantic revolution in the world of payments in the digital economy.
Zelle’s Global Ambitions
In light of this trend, US leading payment network Zelle aims to move into the global space beyond the US through stable coin technology. This will take its success home abroad, speeding cross-border transactions and lowering fees. Early Warning Services CEO Cameron Fowler further stated that Zelle will disrupt how the world moves money across borders with stablecoin technology benefits.
Zelle is banking on replicating the same speed and reliability that made it a favorite among locals. This is in line with increased calls for speedy payment solutions in international markets. Zelle expansion, if it succeeds, can make the company a watchout for its peers like veteran PayPal and Wise.
Future Outlook for Stablecoins
The dramatic surge in the use of stable coins demonstrates mass adoption viability. Merchants and consumers settle bills using the digital tokens, as the market can see stablecoin settlements at $122 billion per year. While infinitesimal compared to traditional payments, it is a viable route for the world of cryptocurrency.
Andrew Van Aken, the data scientist at Artemis, believed that the Genius Act signing into law has created the stage significantly for establishing stablecoins. As stablecoins prove to be more efficient, user trust is likely to increase, further accelerating their adoption in the market.
