The World Trade Organization has quantified the stablecoin paradox: a technology handling trillions in on-chain volume accounts for just 3% of global payments. Genuine payment activity such as remittances and trade settlements represents an estimated $390 billion per year, roughly 1% of total on-chain stablecoin volume. The WTO highlights that regulatory fragmentation, exemplified by incompatible frameworks like Europe’s MiCA and the proposed US GENIUS Act, creates hurdles for stablecoin issuers and disproportionately affects developing economies and smaller businesses. This environment favors large players like Circle and Tether that can navigate multiple jurisdictions, but may accelerate consolidation in the sector. If even modest harmonization occurs between major trading blocs, the addressable market for stablecoin-based payments could expand dramatically from its current $390 billion base.
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