Standard Chartered's Major Report: Why Are Stablecoins Transforming from Cryptocurrency Trading Tools into Digital Settlement Infrastructure?

As of Q1 2026, the global stablecoin issuance has surpassed $320 billion, with quarterly total transaction volumes exceeding $28 trillion, setting a new historical high. The total market capitalization of stablecoins officially crossed this threshold in May 2026. In terms of both outstanding scale and active circulation, stablecoins have already secured an不可忽视的 weight in the digital financial system. Behind this figure is not merely capital accumulation in the crypto market—the quarterly trading volume of $28 trillion indicates that the circulation speed and application frequency of stablecoins have far exceeded their traditional role as a single trading instrument. Stablecoins are becoming the underlying infrastructure for cross-border payments, settlements, and fund dispatch.

What substantive shifts are occurring in the role of stablecoins?

Stablecoins are transitioning from being ancillary tools for crypto asset trading to key settlement mediums within the digital financial system. The core driver of this shift is the rigid demand from enterprises for more efficient cross-border fund settlements. Standard Chartered’s latest report, “How Non-USD Stablecoins Are Moving Toward Scaled Development,” clearly states that stablecoins are gradually integrating into mainstream financial activities such as enterprise cross-border payments and liquidity management. Traditional cross-border payment systems face inherent issues like long settlement cycles, multiple intermediaries, and high costs. Relying on blockchain networks’ real-time settlement capabilities, stablecoins can reduce settlement times from days to minutes and significantly lower transaction costs. This efficiency advantage is pushing stablecoins from being “on-platform tools” for crypto traders to “standard configurations” in corporate financial management.

Does the dominance of USD stablecoins imply that the market has become fixed?

From the stock data, the dominance of USD stablecoins is undeniable. Tether (USDT) has a market cap of about $189.5 billion, and USD Coin (USDC) about $78.3 billion, together accounting for roughly 85% of the stablecoin market. With over 98% of stablecoin market value denominated in USD, USD stablecoins are unquestionably in the leading position. However, the report from Standard Chartered points out that comparing this pattern with the approximately 50% share of USD in the global cross-border payment system reveals a significant structural gap—stablecoin market concentration is much higher than the actual currency demand structure in traditional payment systems. This gap between concentration and demand is the logical starting point for the scale-up potential of non-USD stablecoins. Meanwhile, 32 non-USD local stablecoins have emerged worldwide, involving 11 fiat currencies with a combined market cap of about $1 billion. Although this volume is still a small fraction of the overall market, a trend toward diversification is already emerging.

How significant is the structural gap between 98% and 50%?

The core insight from the Standard Chartered report is that even small adjustments in the currency composition of non-USD stablecoins could generate considerable growth momentum. According to their analysis framework, non-USD stablecoins currently account for less than 2% of the total market. If this proportion converges toward the roughly 50% share of non-USD currencies in traditional cross-border payments, there exists about a 48 percentage point structural growth space. Of course, this projection is not a simple linear extrapolation—evolution of currency patterns is constrained by multiple variables such as regulatory frameworks, payment infrastructure, and regional trade structures. But it at least points to a clear direction: the absolute dominance of USD stablecoins is not the “endgame” of the market; diversification has economic rationality, and this rationality is increasingly recognized by market participants.

What structural drivers and constraints are shaping the scale-up of non-USD stablecoins?

The report summarizes three major structural issues affecting the development of non-USD stablecoins: infrastructure efficiency, cross-border settlement mechanism consistency, and regional trade momentum. On the driving side, the euro stablecoin market provides the most direct validation. After the implementation of the MiCA regulatory framework, euro stablecoin trading volume surged from $69 million in January 2025 to $777 million in March 2026, an increase of over 1,000%. Ten major European banks, including BNP Paribas and ING, have jointly established the Qivalis alliance, planning to launch euro stablecoins in 2026. Meanwhile, the Hong Kong dollar stablecoin HKDAP has completed transfer tests on the Ethereum mainnet and plans phased issuance by the end of Q2 2026. In Latin America, Argentina has introduced a peso-denominated stablecoin, wARS, and Brazil is advancing a real (BRL) stablecoin, BBRL.

Constraints are equally significant. The report uses the World Bank’s B-READY assessment framework, covering four dimensions: financial service efficiency, international trade facilitation, operational conditions, and regulatory environment. Different markets show varying levels of maturity across these dimensions. Additionally, some non-USD stablecoins still face regulatory uncertainties; for example, offshore RMB stablecoin CNHC has attracted regulatory attention. Tether announced in February 2026 that it would cease supporting the offshore RMB stablecoin CNH₮, citing market condition changes and limited community demand.

Are emerging markets becoming the first testing grounds for stablecoin applications?

The report, combining data from the World Bank’s 2025 “Business Environment Maturity Assessment,” indicates that sub-Saharan Africa, Latin America, and some emerging Asian countries exhibit high potential demand for stablecoins due to high cross-border transaction costs and significant deficiencies in local payment infrastructure. In Latin America, crypto trading volume is expected to exceed $150 billion in 2026, with about 40% from stablecoins. In Asia, South Korea has piloted a Korean won stablecoin KRW1 for payments, cross-border remittances, and RWA tokenization applications. Japan’s SBI Holdings, in partnership with Startale, plans to launch a yen stablecoin in Q2 2026. India’s cross-border payment infrastructure company Xflow has initiated pilots allowing Indian enterprises to receive stable payments and convert them compliantly into Indian rupees. The genuine demand for stablecoins in emerging markets is gradually shifting from macro assessments to verifiable business cases.

What structural features characterize stablecoins traded on the Gate platform?

According to market data as of May 15, 2026, the main USD stablecoins USDT and USDC are both anchored close to 1 USD. The 24-hour high for the USDC/USDT trading pair was $1.0003, and the low was $0.9998. From trading activity on the platform, USDC’s adjusted trading volume this year has reached about $2.2 trillion, surpassing USDT’s $1.3 trillion, marking the first time since 2019 that USDC’s on-chain trading volume has exceeded USDT’s. This structural shift signals two things: first, a differentiation in competition among USD stablecoins; second, the continuous expansion of trading volume indicates increasing depth of stablecoin usage. Notably, the high liquidity of stablecoins is not only a result of trading efficiency but also reinforces their fundamental role as settlement tools, making stablecoins more usable in payments, settlements, and fund dispatch scenarios.

Is the transformation of stablecoins from trading tools to settlement infrastructure irreversible?

The trend of stablecoins evolving from simple crypto trading media to core digital financial infrastructure is gaining broad institutional recognition. An example is Standard Chartered’s own involvement in Hong Kong’s crypto asset space—from preparing institutional prime brokerage services to launching retail crypto trading and collaborating on cross-border stablecoin payments. For the Hong Kong dollar stablecoin HKDAP, Standard Chartered directly participates in reserve backing and institutional trust services. This active engagement of traditional financial institutions in building stablecoin infrastructure is the strongest evidence of the mainstreaming trend. The shift of stablecoins from being “embedded tools” within crypto markets to integral parts of the real economy’s payment systems is no longer just a possibility but an unfolding reality.

Summary

Standard Chartered’s latest report sketches a clear structural map of the global stablecoin market. In total, the $320 billion issuance scale and the $28 trillion quarterly trading volume depict a market in a rapid expansion phase. Structurally, USD stablecoins hold over 98% of the market, and the gap between this dominance and the roughly 50% share of non-USD currencies in traditional cross-border payments reveals about 48 percentage points of growth potential. This structural gap underpins the logic for scaling non-USD stablecoins. From regulatory-driven growth of euro stablecoins, regional pilots of Hong Kong and Japanese stablecoins, to Latin America’s diversified local stablecoins, the path toward scale for non-USD stablecoins is unfolding across multiple fronts. The transition of stablecoins from crypto trading tools to digital financial settlement infrastructure is no longer a trend hypothesis but an ongoing reality.

FAQ

Q: What does the “48% growth space” mentioned in Standard Chartered’s report specifically refer to?

A: It indicates that non-USD stablecoins currently account for less than 2% of the overall market, while USD accounts for about 50% in the global cross-border payment system. Based on this, there is approximately a 48 percentage point room for diversification and growth. The report emphasizes structural opportunities rather than precise growth forecasts.

Q: Why did euro stablecoins experience explosive growth between 2025 and 2026?

A: The main driver is the formal implementation of the EU’s MiCA regulatory framework, which provides clear legal grounds and operational boundaries for compliant stablecoin issuance, significantly reducing compliance costs and uncertainties for market participants.

Q: What conditions are necessary for non-USD stablecoins to scale?

A: The report summarizes three key structural variables: infrastructure efficiency (blockchain network performance and adoption), cross-border settlement mechanism consistency (alignment of payment standards across jurisdictions), and regional trade momentum (actual demand from regional economies for digital settlement tools).

Q: Will the dominance of USD stablecoins be broken in the short term?

A: Given their liquidity depth, market recognition, and infrastructure advantages, USD stablecoins are unlikely to be displaced in the near term. The report’s projection emphasizes a long-term trend toward diversified currency structures rather than an immediate overturning of the current dominance.

Q: What are the advantages of stablecoins as digital settlement infrastructure compared to traditional payment systems?

A: Core advantages include real-time settlement (minutes rather than days), high transparency (traceability on-chain), lower intermediary costs (reducing middlemen in cross-border payments), and price stability anchored 1:1 to fiat currencies.