While everyone is talking about the new Bitcoin boom, the really big players are focusing on another class of cryptocurrencies: Stablecoins. These digital tokens could revolutionize the way money is moved worldwide – without the extreme volatility cryptocurrencies are known for.

The Future of the Digital Financial World

Stablecoins are the calm anchor in the world of digital assets.

Visa, for example, has created a service with its "Tokenized Asset Platform" that helps banks issue stablecoins. PayPal went a step further: together with Paxos, the company has already launched its own stablecoin, PYUSD. Stripe, known as an innovative payment service provider, is also investing heavily in this technology.

But why all this euphoria? The answer lies in the possibilities that stablecoins offer. They lower transaction costs, increase efficiency, and bypass the expensive and often error-prone traditional banking system. They are increasingly being used especially in underserved sectors such as global payroll, trade financing, and remittances.

Tether: A Billion-Dollar Business Model

The market leader Tether (USDT) impressively demonstrates how lucrative the stablecoin business can be. With a market capitalization of 140 billion US dollars and a net profit of 10 billion dollars in 2024, the company is a prime example of the success of this business model.

Why? Stablecoin issuers invest the funds backing their tokens in short-term US Treasuries—a safe investment with attractive yields. The result: a consistently increasing profit.

But Tether's dominance is being challenged. In the EU, new regulations such as the MiCA rules (Markets in Cryptoassets) could pose difficulties for the market leader. Without a so-called "e-money license," Tether faces delisting from European crypto exchanges. Competitors like Circle, the issuer of USD Coin (USDC), have already better adapted to the regulatory requirements.

The Risks Behind the Shiny Facade

Of course, not everything that glitters is gold. The example of TerraUSD serves as a reminder: The algorithmic stablecoin collapsed spectacularly in 2022, taking $200 billion in market value with it. The bankruptcy impressively demonstrated how dangerous unstable mechanisms in this area can be.

The USA are also lagging behind in regulation. While the EU has established clear rules with MiCA, a unified strategy is lacking in the United States. Companies like Robinhood, which use stablecoins for internal transactions, are therefore pushing for clear framework conditions.

Why Stablecoins Are Important for All of Us

Stablecoins are not just a toy for fintechs and tech giants. They have the potential to change all of our lives. With them, international transfers could become cheaper and faster, salaries could be paid in real-time, and trading processes could be more efficient.

Stablecoins allow companies to enter the crypto world without encountering the risky or dubious aspects of the industry," explains Anna Yuan, founder of the Stablecoin project Perena.

The major financial companies have long recognized this. 2025 will be the year to decide whether stablecoins finally transition into the mainstream – or fail due to regulatory and technological hurdles.