Institutional Adoption- Institutions will require stablecoins with yield generation capabilities, thus fueling demand in this market.
- The Circle processed over $12 trillion in USDC transaction volume in 2023, which illustrates a rising level of adoption for stablecoins. "Regulatory Landscape- The regulatory landscape is becoming clearer with the emergence of frameworks in the US, Europe, and other parts of the world." - Banks are getting clearer regulation with regards to stablecoins, custody, and participation in blockchain networks. Outlook- The market for stablecoins will continue to grow, and innovations in this space are likely to come from yield-bearing stablecoins and synthetic dollars. Primitives will be developed with a focus on financial systems based on the Bitcoin technology, such as those isolating a profit stream from a principal stream or pairing a stable profit stream with a Bitcoin incentive.
