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I've recently attended a discussion on Banking, Agentic AI and autonomous financial services organised by FinTech Futures. Sophia Bantanidis, analyst in the Future of Finance team within Citi was also there. Below is their latest primer on digital assets, blockchain and stablecoins.

report

#innovation #Blockchain #Stablecoin

Attachment(s)

GPS_Report_Blockchain_Digital_Dollar.pdf   2.71 MB 1 version

Recent white paper from BCG on stablecoins.

Hi,

I came across this "The State of Stablecoins in 2025" from Outlier Ventures. Perhaps an interesting read?

It provides an in-depth analysis of the current landscape and future trajectory of USD-denominated stablecoins. It highlights their significant growth, increasing integration into global finance, and the evolving regulatory environment.

Key Takeaways

1. Rapid Growth and Market Penetration

   • USD stablecoins have surpassed a $220 billion market capitalization, accounting for over 1% of the U.S. M2 money supply.

   • This marks a 59.7% year-to-date increase and a 40.9% year-over-year growth in their ratio to M2.

   • In 2024 alone, stablecoins facilitated over $24 trillion in transactions, underscoring their role in blockchain-based finance and commerce.arXiv+3Outlier Ventures+3Outlier Ventures+3

2. Stablecoin Issuers as Major Holders of U.S. Treasuries

   • Stablecoin issuers have become the 20th largest direct holders of U.S. treasuries globally, surpassing countries like Germany and Mexico.

   • Their reserves are primarily backed by cash and short-term U.S. treasuries, generating significant revenue from interest yields.

3. Evolving Regulatory Landscape and Market Dynamics

   • U.S. legislation is paving the way for a new class of stablecoin issuers, including banks, fintechs, enterprises, and governments.

   • This regulatory clarity is expected to transform competition, distribution, and innovation within the stablecoin market.Financial Times

4. Strategic Implications for U.S. Monetary Policy

   • The growth of stablecoins offers the U.S. government an opportunity to extend the dollar's monetary influence globally.

   • By aligning stablecoin regulation with fiscal and geopolitical objectives, the U.S. can reinforce dollar hegemony through digital assets.arXiv

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Aya Pariy
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Original Message:
Sent: 24-05-2025 13:40
From: Todor Kostov
Subject: Blockchain and stablecoins

Recent white paper from BCG on stablecoins.

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Todor Kostov
Director
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