A new study has found that the value of payment transactions powered by stablecoins will exceed $187 billion globally by 2028.
That would be a significant increase from the $53 billion in transactions in 2023, according to the report produced by Juniper Research, an expert in emerging payments,
Stablecoins are cryptocurrencies that have their value pegged to a fiat currency or commodity, removing the volatility inherent to a typical cryptocurrency.
The study revealed that stablecoins are making rapid progress in the cross-border market. In that market, they represent a way to bypass slow, expensive, and difficult-to-track existing cross‑border payment rails. By 2028, the value of cross-border stablecoin payments will represent roughly 73 percent of total stablecoin payments transaction values globally.
However, the research identified the main obstacle for further growth as being acceptance, with stablecoin roll-outs needing new networks to be built and scaled.
“Stablecoins have vast potential to unlock the flow of money across borders, but payment platforms need to roll out acceptance strategies for this to progress. MTOs (Money Transfer Operators) can leverage stablecoins in a wholesale manner, but this will need networks to be built across wide geographic footprints,” study author Nick Maynard said.
Another challenge to stablecoin growth is the role of CBDCs (Central Bank Digital Currencies). CBDCs are digital coins issued by a central bank, which are pegged to the country’s fiat currency. While CBDCs are at an early stage of development, they have the potential for cross-border use. The advantage CBDCs have is their central bank backing. However, the study found that, given the size of the cross-border space, and the very nascent stage of CBDC development, stablecoins have strong prospects for growth alongside CBDCs.