4zUp 🖐️

Polymarket Trader

[4zUp 🖐️ @4zup]

my 15th anniversary on twitter

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Many high-inflation countries grew stablecoin transaction volumes by multiples from last year.

Transaction growth for tagged USDC/USDT accounts from June 2024 to June 2025:

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Stablecoin Adoption May Depend on Cash and Card Use, Government Effectiveness, Volatility

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What are the Implications of Stablecoin Growth on the Monetary Supply?

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What are the Potential Impacts of Stablecoin Growth on Bank Deposits?

While current regulatory proposals do not consider stablecoins being interest-bearing, the ultimate design of stablecoins will likely dictate the potential magnitude of impact to bank deposit flows.

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Chart: Model-based projection of stablecoin market cap growth

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What are Stablecoins and How are They Used Today?

Stablecoins are digital assets designed to maintain a stable value by pegging their worth to a reserve asset, such as fiat currency (USD).

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Supply of USDT on TRON alone has grown by around $20B YTD.

Outstanding supply of USDT on TRON:

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What are the Potential Consequences of Stablecoin Growth on the Treasury Market?

With an expectation that stablecoins will continue being backed by fiat assets and that tokenized MMFs will continuing serving as an attractive investment product for investors

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Stablecoin transaction volumes are now rivaling legacy payment networks like ACH, Visa, and PayPal.

Adjusted volumes excluding MEV and internal CEX transfers as a % of ACH volumes:

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Stablecoin transaction volumes compared with Visa and Mastercard:

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Stablecoins could become a significant new source of demand for Treasuries:

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Current State of the Stablecoin Market

The stablecoin market is rapidly evolving amid renewed institutional interest, the evolution of global regulatory frameworks, and the development of broader on-chain applications / use cases.

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"88% of North American Firms See Stablecoin Regulation as a Green Light, Not a Barrier"

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Stablecoin flows are already having a direct impact on short-term treasury markets:

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Almost 90% of stablecoin use is crypto trading

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Europe’s stablecoin adoption, at 58%, is fueled by competition (37%) and MiCA’s regulatory clarity, with just 18% viewing regulation as a hurdle. Security drives strategy, with 42% noting legacy risks and 37% seeking safer rails, supported by firms like Fireblocks.

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Stablecoin total market capitalization breached $250 billion on the back of sharpening regulatory clarity:

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Stablecoins enable traditional banks, which prioritize cross-border payments twice as much as other use cases, to integrate fiat-pegged assets into treasury systems, reclaim market share, and enhance efficiency.

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Revenue growth leads stablecoin adoption, with 3 locals of 4 drivers focused on expansion.

Banks target new markets and regulatory fit, while fintechs aim for cost efficiency and top-line growth, blending offensive and defensive approaches.