Only 10% Of Stablecoin Transaction Volumes In April Originated From 'Organic Payments Activity'
Portfolio Pulse from Khyathi Dalal
A study by Visa and Allium Labs found that only 10% of stablecoin transaction volumes in April were from 'organic payments activity', challenging the perception of stablecoins' acceptance as a payment method. Despite the push from fintech companies like PayPal and Stripe, the study suggests stablecoins are not yet widely used for genuine transactions. Visa, processing over $12 trillion in transactions last year, could be impacted if stablecoins gain acceptance, but stablecoin circulation is predicted to reach $2.8 trillion by 2028.
May 06, 2024 | 8:16 pm
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NEUTRAL IMPACT
Visa's study with Allium Labs shows limited genuine stablecoin transactions, potentially affecting its position if stablecoins become widely accepted.
Visa's involvement in the study underlines its interest in the stablecoin market. While the current impact is neutral, given stablecoins' limited genuine use, the potential for future disruption exists if stablecoins gain broader acceptance. Visa's large transaction volume could be affected in the long term, but the immediate impact remains neutral due to the current state of stablecoin transactions.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
PayPal's progress in the stablecoin arena might be challenged by findings that only a small fraction of stablecoin transactions are genuine.
PayPal, as a fintech company making strides in the stablecoin market, faces a setback with the revelation that a significant portion of stablecoin transactions may not be genuine. This could impact PayPal's stablecoin initiatives by potentially slowing adoption or requiring adjustments to their strategy to ensure genuine usage and acceptance.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70