The top reasons why the stablecoin market could see a 10-fold increase in growth

Stablecoin is increasingly attracting the attention of policymakers, large corporations, and technology platforms worldwide. The combination of legislative efforts, infrastructure investment, and the expansion of practical applications is gradually shaping a promising future for the digital payment sector.

These factors resonate with each other, leading many experts to believe that the stablecoin market could grow 10 times in the near future.

GENIUS Act: Legal Launchpad for the Stablecoin Boom

In the United States, one of the core drivers propelling the stablecoin market is the GENIUS Act – a landmark bill aimed at establishing a federal legal framework for stablecoin issuers. This bill is expected to establish consistent oversight and licensing standards, facilitate the acceptance of financial institutions, increase consumer trust, and promote technological innovation.

Nick Tomaino – a well-known figure in the cryptocurrency industry – believes that the GENIUS Act could help the stablecoin market grow tenfold. He suggested that if investors with direct interests are involved in shaping policies through the "futarchy" model – where prediction markets guide policymaking – the outcomes achieved will be more effective and practical.

Futarchy – when market predictions guide policy

Futarchy is a governance model that combines financial markets and policy planning, in which stakeholders place financial bets on different versions of a bill. The version that the market assesses to have the best chance of achieving the best outcome will be prioritized for implementation.

Tomaino suggests that instead of solely relying on traditional legislative opinions, laws like GENIUS should integrate market perspectives to ensure higher practical effectiveness. For example, if the goal is to raise the market capitalization of stablecoin from 250 billion USD to 2.5 trillion USD within three years, the market predictions could evaluate each version of the bill based on the likelihood of achieving this outcome.

This approach is not only data-driven but also ensures that those with a direct interest will play an active role in shaping policy.

Positive signals from the corporate sector and global strategy

Alongside legislative efforts in the U.S., global corporations are also showing interest in stablecoin as part of their financial digitization strategy. Notably, JD.com – China's leading e-commerce platform – has stated that it is researching the licensing of stablecoin in multiple countries.

Chairman Richard Liu stated that JD's goal is to reduce cross-border payment costs by 90% and shorten transaction times to under 10 seconds. This move marks a shift from a business payment system to a consumer-oriented model.

By implementing stablecoin in direct transactions, JD can significantly expand its range of applications while attracting more sellers and buyers to participate in the ecosystem. Fast processing speed and low costs are key factors driving the adoption of stablecoin as a new payment medium.

Strong infrastructure development, positive market sentiment

Along with the policies and the involvement of businesses, the infrastructure for stablecoin trading is also developing rapidly. Prediction platforms like Polymarket recorded a trading growth of 23 times compared to the same period last year – reflecting the increasing interest of investors.

The expansion of the user base indicates a growing public acceptance of blockchain-based financial tools, not only among individual investors but also within institutions.

In the context of fields such as remittances, payroll, and trade shifting towards blockchain solutions, stablecoins emerge as a high liquidity and low volatility tool. The integration of stablecoins into consumer applications will help boost daily transaction volumes and expand the user base.

China concerns about the impact of US stablecoin

As US stablecoins continue to expand their influence, recent reports indicate that China is expressing concerns that USD-pegged stablecoins could threaten national monetary sovereignty. Chinese officials are worried that US stablecoins will further strengthen the global financial position of the United States.

In response, companies like Ant International have started developing domestic stablecoins, indicating that China may be shifting away from the state-controlled CBDC model towards a more decentralized financial ecosystem, based on the principles of free market and Web3 technology.

Mr. Teacher