According to the research report published by stock broker Bernstein on Wednesday, the stablecoin market will reach $2.8 trillion from today's $125 billion in the next five years.
The report states that integration with consumer platforms will lead to a growth spurt for stablecoins, thereby attracting users to the market and expanding distributions beyond crypto platforms.
Analysts led by Gautam Chhugani said, “We expect global financial and consumer platforms to collaboratively issue stablecoins, resulting in significant growth.” said.
This week, payments giant PayPal (PYPL) announced its entry into the crypto market by introducing the dollar-pegged PayPal USD (PYUSD). This development will be a first among large financial companies. The Ethereum-based token will be available first on PayPal and then on Venmo and can be exchanged for dollars.
According to the Bernstein report, stablecoins will be supported by “hyper-fast financial settlement layers” (layer-2 or centralized consumer platforms) on public blockchains such as Ethereum.
“Regulated and grounded stablecoins” will lead the growth.
“Politically, stablecoin regulations have more support than crypto.” The report states that many jurisdictions, including Singapore, Hong Kong and Japan, have launched pilot projects in the fields of stablecoin and CBDC.

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