Stablecoin transaction volume has exceeded $4 trillion in the last 4 years

An analysis of stablecoins in the global crypto space shows a significant increase in their use and an increasing role in the financial ecosystem. This was stated by Bai Jeffrey, chief analyst at HashKey Group. Over the past 4 years, the volume of stablecoin transactions has increased 17 times, reaching $4 trillion. In July 2024, they accounted for 91.7% of the entire market, with USDT dominating at 83.3%.

The expert noted that despite their growing popularity, stablecoins face regulatory challenges and the need to be tied to traditional financial institutions. In this context, Hong Kong and Europe are taking steps to create regulatory frameworks that could significantly change the market.

The expert emphasized that Hong Kong plans to become the first jurisdiction to allow banks to issue stablecoins. The government is already actively developing a regulatory regime aimed at maintaining financial stability and protecting consumer rights. At the same time, for existing market leaders such as USDT and USDC, the transition to new requirements may become a real challenge.

The European approach shows similar goals. In April 2024, the European Parliament approved the MiCA, a comprehensive regulation of cryptocurrencies in Europe. It includes strict reserve requirements for stablecoin issuers, which has already drawn criticism from major players, including Tether. USDC stablecoins may gain an advantage in the European market, leading to a reshuffle among the leaders.

According to the analyst, initiatives by Hong Kong and European authorities could become an example for other jurisdictions. These regions are developing global regulatory standards aimed at increasing the transparency and stability of the financial system. This will attract institutional investors, increase the legitimacy of the crypto industry and contribute to the global growth of markets.