A new study from Juniper Research has found that the value of stablecoin payment transactions will exceed $187bn globally by 2028, up from $53bn in 2023.
The study found that stablecoins are making rapid progress in the cross-border market in particular, with it representing a key way to bypass slow, expensive and difficult-to-track existing cross‑border payment rails.
By 2028, the value of cross-border stablecoin payments will represent almost 73% of total stablecoin payments transaction values globally; showing the dominance of cross-border use cases, according to the study.
Stablecoins have the potential to be highly effective, as they remove stages in the cross-border process, increase speed of transactions and settlements, and greatly improve traceability.
The research, however, identified the main obstacle for further growth as being acceptance, with stablecoin roll-outs needing new networks to be built and scaled.
Another challenge to stablecoin growth is the role of CBDCs (Central Bank Digital Currencies). CBDCs are digital coins issued by a central bank, which are pegged to the country’s fiat currency.
While CBDCs are at an early stage of development, they too have strong potential for cross-border transactions. The advantage CBDCs have is their central bank backing, meaning roll-outs should be at a faster pace.
However, given the size of the cross-border space, and the very early stage of CBDC development, Juniper outlines that stablecoins have strong prospects for growth alongside CBDCs.
Research Author, Nick Maynard, explained: “Stablecoins have vast potential to unlock the flow of money across borders, but payment platforms need to roll out acceptance strategies for this to progress.
“MTOs (Money Transfer Operators) can leverage stablecoins in a wholesale manner, but this will need networks to be built across wide geographic footprints.”