Stablecoin Adoption Could Rise on Crypto-Friendly Regulation — Market Talk

Demand for stablecoins, or cryptocurrencies that are pegged to another asset like the dollar, could rise further on more crypto-friendly regulation, UBS Global Wealth Management analysts say in a note. The Trump administration's pro-crypto stance could result in greater regulatory clarity and oversight, they say. This could result in increased adoption and greater involvement from major U.S. banks. The EU's MicA regulation could also boost stablecoin adoption. Meanwhile, established fintech platforms like PayPal are integrating stablecoins into their platforms and this could see other financial service providers follow suit. "Several banks are looking at stablecoins as a way to streamline payments and reduce frictions and costs in cross-border transactions, but also to defend their existing business against possible market entrants." ([email protected])