Several of the world's leading banks and fintech companies are actively preparing to launch their own stablecoins. Last month, Bank of America announced its intention to issue its own cryptocurrency, joining such well-known payment providers as Standard Chartered, PayPal, Revolut and Stripe, according to the Financial Times.
Companies' interest in stablecoins is growing against the backdrop of their increasing recognition among regulators in various countries and the policies of US President Donald Trump.
Stablecoins, while typically used for exchanges between cryptocurrencies, are gaining popularity in emerging markets as an alternative to local banks for payments, particularly in commodity trading, agriculture, and shipping.
These stablecoins are a form of private digital cash that effectively acts as a reserve for a sovereign currency, usually U.S. dollars. Payments in digital coins allow companies and consumers to instantly and cheaply access hard currency outside the banking system.
There are about $210 billion worth of stablecoins in the world, of which approximately $142 billion was issued by the Salvadoran company Tether, and $57 billion by the American company Circle, under the brands USDT and USDC, respectively.
Elon Musk's SpaceX is using them to repatriate funds received from the sale of Starlink satellites in Argentina and Nigeria, and ScaleAI is offering its overseas contractors to receive salaries in digital tokens.
Transaction volumes last month rose to $710 billion, up from $521 billion a year earlier, and the number of unique stablecoin addresses rose to 35 million, up 50% from the same period a year earlier, according to Visa.