Stablecoin-backed payments to surpass US$187 billion globally in 2028: Juniper

The value of payment transactions backed by stablecoins will exceed US$187 billion globally by 2028 according to a new report from Juniper Research.

In 2023, Juniper predicts stablecoin payment will hit US$53 billion.

Stablecoins are cryptocurrencies that have their value pegged to a fiat currency or commodity, removing the volatility inherent to a typical cryptocurrency.

The study found that stablecoins are making rapid progress in the cross-border market in particular, with them representing a key way to bypass slow, expensive and difficult-to-track existing cross‑border payment rails.

By 2028, the value of cross-border stablecoin payments will represent almost 73 percent of total stablecoin payments transaction values globally; showing the dominance of cross-border use cases, Juniper noted.

Stablecoins can be highly effective, as they remove stages in the cross-border process, increase the speed of transactions and settlements, and greatly improve traceability.

The research, however, identified the main obstacle for further growth as being acceptance, with stablecoin roll-outs needing new networks to be built and scaled.

Nick Maynard, research author at Juniper Research said stablecoins have vast potential to unlock the flow of money across borders.

“But payment platforms need to roll out acceptance strategies for this to progress,” he said.  

“MTOs (Money Transfer Operators) can leverage stablecoins in a wholesale manner, but this will need networks to be built across wide geographic footprints.”

Another challenge to stablecoin growth is the role of CBDCs (Central Bank Digital Currencies).

CBDCs are digital coins issued by a central bank, which are pegged to the country’s fiat currency. While CBDCs are at an early stage of development, they too have strong potential for cross-border.

The advantage CBDCs have is their central bank backing, meaning roll-outs should be at a faster pace. However, the research noted given the size of the cross-border space, and the very nascent stage of CBDC development, stablecoins have strong prospects for growth alongside CBDCs.