- Stablecoins are redefining their role, going beyond their traditional ‘safe haven’ status.
- A major shift is underway that could transform the entire financial landscape.
When Bitcoin [BTC] stumbles, stablecoins are often in the spotlight as the ‘safe haven’ of the crypto market. But their role has gone far beyond just protecting investors.
Nowadays, stablecoins are making their mark on the real economy. In global trade, for example, they are becoming a popular alternative to the US dollar as they help broker cross-border deals for key commodities such as oil and crops. However, their influence extends beyond just the financial sector.
Stablecoins are now doubling down on the tech giants
Stablecoins are quickly becoming the preferred option for international money transfers, and it’s easy to see why. Their ability to send money instantly surpasses traditional banking systems.
Matthew Sigel of VanEck recently marked a key shift. Major players like Western Union and MoneyGram are struggling: Western Union sees a 22% drop in app usage and MoneyGram sees a 27% drop.
Even more telling, the number of monthly active users has remained stuck below 3 million since 2021, indicating fewer people are turning to their services.
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And it’s not something to overlook. These companies dominate the payments space, with market capitalizations of $302 billion and $92 billion, respectively.
However, with stablecoins now exceeding a market cap of $200 billion, they are becoming serious competition. Clearly, it’s a shift that’s hard to ignore.
But what is driving this shift?
Stablecoins may be pegged to the US dollar, but they are far from a typical currency.
Blockchain technology makes transactions faster, cheaper and more efficient, giving them a significant advantage over traditional money transfer services, which are often associated with high fees and delays.
Like the US dollar wobble Under rising interest rates, stablecoins are emerging as the preferred option for international payments.
Why? While the dollar’s volatility can make imports more expensive and fuel inflation, stablecoins remain stable and offer more predictable transactions for businesses, individuals and countries.
Read Bitcoin’s [BTC] Price forecast 2025-26
This shift is just beginning, as stablecoins are already proving their value beyond finance and technology.
With the Federal Reserve’s plans for higher interest rates, a rising dollar index, and risky assets like Bitcoin and stocks under pressure, stablecoins are emerging as the ultimate safe haven of the year.