Opinion: Maksym Sakharov, co-founder and group CEO of Wefi
The current market is experiencing tail winds as a result of tariffs imposed by the US administration and retaliation measures from trading partners. But so far, market supporters have said Trump’s tariffs are primarily a negotiation strategy and the impact on businesses and consumers remains manageable.
Market uncertainty drives institutional interest
In addition to uncertainty, there is inflationary pressure that could challenge the US Federal Reserve’s prospects for rate reductions. Additionally, the pressing financial debate in Washington over the federal budget has also sparked unrest in the market.
Resolving the debt cap remains a pressing issue as the Ministry of Finance currently relies on “extraordinary measures” to fulfill its financial obligations. The exact timeline for when these measures will be exhausted is unknown, but analysts expect it could go out after the first quarter.
The administration has proposed to eliminate the debt cap, which could face resistance from fiscal conservatives in Congress. A recent report shows that despite this macroeconomic uncertainty, one sector experiencing stable growth is stable. Many of the volumes are driven by Tether’s USDT (USDT) and USDC (USDC) flows.
Dollar-covered stub coins dominate the market
Stablecoins began as an experiment as a programmable digital currency that allowed users to enter the crypto market and trade a variety of digital assets. Ten years from now, they are a key part of the broader digital financial infrastructure.
Stablecoin’s market capitalization is currently at a record $226 billion and is expanding. Demand in emerging markets drives this growth. A recent ARK Invest report states that dollar-covered stubcoins dominate the market. They account for more than 98% of the stubcoin supply, with gold and euro-backed stubcoin sharing only a small portion of the market.
In addition to this, Tether’s USDT accounts for more than 60% of the total market. ARK’s research suggests that the market expands and includes the ridiculous idiots that Asian currencies have been put in bags.
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In addition, digital assets have undergone a shift marked by “stabilization” and “dollarization.” Asian countries like China and Japan are offloading record volumes of US treasury. Saudi Arabia has ended its 45-year Petrodler agreement, and BRICS countries are increasingly bypassing their rapid networks to reduce their dependence on the US dollar.
Bitcoin (BTC) and ether (ETH) have traditionally been major entry points into the digital asset ecosystem. However, Stablecoins have taken a lead over the past two years, and now accounts for 35%-50% of the volume of Onchain transactions.
Despite global regulatory headwinds, emerging markets are adopting stubcoins. In Brazil, 90% of crypto transactions are made through Stablecoins, which are primarily used for international purchases.
The visa report ranks Nigeria, India, Indonesia, Turkey and Brazil as the most active stubcoin market, with Argentina ranking second in Stubcoin Holdings. Additionally, six tickets for ten domestic purchases were made using dollar-fixed Stablecoins, with almost parity between USDC and USDT.
This shift to Argentina’s absurdity is driven by the need to protect against high inflation and the devaluation of the Argentine peso. People in countries with unstable currencies rely on stable idiots like USDT to protect their wealth.
Deobanks and the role in high-risk regions
Stablecoins paves the way for a new generation of financial services. For example, Stablecoins offers the foundation for decentralized on-chain banks or Deobanks that accept Stablecoins as their native currency.
DeObanks will ensure that everyone has access to digital banking and financial services, even those who do not meet strict account initiation criteria. They also attract people who don’t trust traditional institutions with money. Users will continue to have full control over their funds through non-mandatory accounts and enjoy real-time transactional transparency.
Decentralized Nature in Deobanks replaces intermediaries with smart contracts that connect personal wallets directly to digital bank accounts. This approach reduces costs and speeds up transactions. ONCHAIN ​​data transparently stores details of all transactions. The result is an efficient and comprehensive financial model.
What’s ahead
Analysts predict that Stablecoin’s market capitalization will surpass $400 billion in 2025. Deobanks will use Stablecoins to drive economic growth and expand its digital payments network to bring new advantages to this growth. They open up fresh paths for cross-border commercial transactions and new opportunities for financial inclusion.
Over the next few years, the rise in stubcoins and next-generation on-chain banks will change how borders and how transactions are handled. Blockchain integration at the backend and Stablecoin Foundation promotes lower fees, faster payments and wider access to financial services. This trend represents a shift away from an outdated system, signaling a more resilient financial ecosystem.
Opinion: Maksym Sakharov, co-founder and group CEO of Wefi.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
