In a new report from Standard Chartered and its affiliate Zodia Markets, the authors predict that stablecoins transaction volumes will grow from the 1% of US M2 transactions they represent today to 10%. They also expect them to present 10% of foreign exchange (FX) transactions. Rather than giving a date, they say it will be driven by U.S. regulation. Additionally, they propose that stablecoins could be used by non-US traditional finance (TradFi) investors to address foreign exchange challenges raised by the US move to T+1 for equity settlement. They’re not just proposing it, they are trialing it.
Zodia Markets was founded by Standard Chartered’s SC Ventures. It launched in 2022 as a crypto brokerage and exchange, but pivoted to an over the counter (OTC) FX settlement solution for cross border payments involving stablecoins. By the middle of this year it was trading $50-$60 million a day.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
