Deutsche Bank Forecasts Mainstream Rise for Stablecoins in 2025 After U.S. Regulatory Developments

According to a recent research report by Deutsche Bank, stablecoins are on track for mainstream adoption this year, fueled by the U.S. government’s efforts to advance key crypto regulations under the Trump administration.

While resistance in the Senate emerged last week, the bank remains optimistic about continued regulatory progress in the stablecoin sector throughout 2025.

Stablecoins, cryptocurrencies whose value is linked to assets such as the U.S. dollar or gold, have become crucial in the cryptocurrency market, enabling fast, low-cost global money transfers and facilitating a significant portion of crypto trading activity.

The Senate’s proposed Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act would establish federal guidelines for stablecoins with a market capitalization exceeding $10 billion. This framework also allows for state-level regulation, provided it is consistent with federal rules. On the other hand, the House’s STABLE Act seeks state-specific regulation without the need for federal preconditions.

Stablecoin market capitalization has seen explosive growth, now standing at $246 billion, compared to just $20 billion in 2020. The largest stablecoin, Tether (USDT), currently holds a market cap of approximately $150 billion.

Deutsche Bank analysts Marion Laboure and Camilla Siazon pointed out that stablecoins now account for more than two-thirds of all cryptocurrency trading, providing faster transaction speeds, continuous access, and low-cost, programmable payments.

The report also notes the strategic importance of stablecoins, highlighting that 83% of them are pegged to the U.S. dollar, with Tether holding substantial U.S. Treasury assets. These developments underscore the role stablecoins play in strengthening the dominance of the U.S. dollar in a rapidly evolving global economy.

The GENIUS Act is expected to be enacted soon, with Standard Chartered predicting that such regulatory clarity could lead to a nearly tenfold expansion of stablecoin supply, further solidifying their role in the financial system.