Crypto May Have Found Its 'Killer' Application, According to Bernstein

Crypto May Have Found Its ‘Killer’ Application, According to Bernstein

According to investment giant Bernstein, stablecoins could be crypto’s favorite ‘killer app’ (a new technology, product or software that has managed to outperform its competitors and is now indispensable). The company estimates that the stablecoin market will be worth around $3 trillion in the next five years.

“We expect major global financial and consumer platforms to issue co-branded stablecoins,” said Bernstein analyst Gautam Chugani. We estimate that tokenized stablecoins will be a $2 trillion 800 billion market going forward.” Commented.

Business models are very attractive

Chugani emphasized that the business model of stablecoins is highly attractive due to the income that issuing companies generate from their treasury and money market assets. This profit pool will gradually shift from offshore to onshore and the market will be regulated, said the analyst.

PayPal entry may change balance

There are approximately $125 billion worth of stablecoins in circulation. Tether alone accounts for 68% of the stablecoin market with $84 billion, increasing its market cap by 26% this year. It is believed that this balance will change with the entry of players like Paypal. As is known, global payments company PayPal has launched its own stablecoin PayPal USD (PYUSD) on the Ethereum blockchain in the past weeks. Bernstein underlined that PayPal is at the forefront of this move.

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