Surprisingly to some, the list of use cases for stablecoins has exploded during a market downturn, further engendering their use to fintechs, payment companies, institutional banks and investment firms. Many of these market participants are either already utilizing stablecoins in everyday finance or are exploring ways to do so.
In our guide, “The Rise of Stablecoins and the Future of Finance,” we show how the steep rise in stablecoin use inspires other market participants and how digitizing stable assets will ultimately unlock the potential of global financial markets.
$7T
Over $7T of stablecoins were used in settlement and trading in 2022
The guide provides the context of stablecoins’ accelerating acceptance, noting key points in their rise, such as:
- Stablecoins used as a digital asset for settlement and trading are represented by a total value settled topping $7T in 2022
- Estimates see as much as $5T of global assets moving to stablecoins and other digital money formats by 2030
- Why using regulated stablecoins is crucial, as only regulated stablecoins provide proper transparency and reserve composition oversight
As mainstream adoption of stablecoins scales, we will continue to see important benefits for the financial system. Yet despite stablecoins’ obvious advantages and the surging market enthusiasm behind them, stablecoin issuers must fully comply with current and future regulations to maintain the integrity of all financial markets.
Trust Charter vs. Money Transmitter License
Trust Charter
Money Transmitter License
Qualified custodian
Required to hold customer funds segregated from company funds
Holds all client assets bankruptcy remote by law*
Cannot use customer funds to facilitate other business
*This is a distinguishing feature of Paxos-issued stablecoins from MTL-based and unregulated stablecoin issuers. If MTL-based and unregulated stablecoin issuers become insolvent, customers would become exposed to delays, and courts could determine customer assets belong to the senior creditors of the issuer’s bankruptcy estate.
Trust Charter vs. Money Transmitter License
Qualified custodian
Trust charter
MTL
Required to hold customer funds segregated from company funds
Trust charter
MTL
Holds all client assets bankruptcy remote by law*
Trust charter
MTL
Cannot use customer funds to facilitate other business
Trust charter
MTL
*This is a distinguishing feature of Paxos’ USDP stablecoins from MTL-based and unregulated stablecoin issuers. If MTL-based and unregulated stablecoin issuers become insolvent, customers would become exposed to delays, and courts could determine customer assets belong to the senior creditors of the issuer’s bankruptcy estate.
To learn about the rise of stablecoins download your free copy of “The Rise of Stablecoins and the Future of Finance” below, and see why they are poised to succeed as core components of the future financial system.