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Stablecoins Gain Traction: Binance, JPMorgan, and Global Banks Drive Growth
The global stablecoin market has achieved a significant milestone, with the total supply now surpassing $301.5 billion, according to recent data. This impressive growth highlights stablecoins’ growing role in the evolving crypto ecosystem.
Binance’s Role in the Liquidity Boom
A key player behind this surge is Binance, which has emerged as a major catalyst in expanding stablecoin liquidity. Notably, Binance’s ERC-20 stablecoin reserves dropped from $42 billion to $32 billion in August, marking the largest on-chain stablecoin holdings ever recorded on the exchange. This shift signals continued robust trading activity on Binance, with both user numbers and liquidity demand on the rise.
While some traders have rotated out of volatile cryptocurrencies into stablecoins, Binance’s expanding stablecoin reserves suggest that users remain actively engaged and not fully risk-averse.
Institutional Demand and Growing U.S. Dollar Exposure
Stablecoins are increasingly bridging the gap between traditional finance and digital assets. Analysts at JPMorgan project that overseas investors could drive an additional $1.4 trillion in U.S. dollar demand via stablecoins by 2027, should global adoption continue to expand.
JPMorgan highlights that since approximately 99% of stablecoins are pegged 1:1 to the U.S. dollar, growth in stablecoin supply naturally signals heightened dollar demand. Beyond trading, stablecoins are gaining traction for cross-border transactions, remittances, and on-chain settlements—favored for their speed and cost-effectiveness compared to traditional payment methods.
Switzerland Paves the Way for Stablecoin Innovation
Switzerland is positioning itself as a global innovation hub for stablecoins. The Swiss Federal Department of Finance is actively revising legislation to foster blockchain-based payment systems.
At the Swiss stablecoin roundtable on October 10, policymakers, business leaders, and researchers gathered to explore stablecoins’ role in complementing regulated payment infrastructures. National Councillor Benjamin Fischer emphasized Switzerland’s ambition to become a pragmatic leader in digital finance through balanced regulation and innovation support.
Meanwhile, Spain’s financial sector is also evolving, with Santander joining nine major global banks, including Bank of America and Goldman Sachs, in a stablecoin pilot program, reflecting growing institutional interest worldwide.
