Stablecoins have experienced tremendous growth last year. Their collective market cap recently hit a milestone of $200 billion.
Beyond the popular ones such as Tether’s USDT and Circle’s USDC, industry players now predict a new wave incoming for “revenue-sharing” stablecoins.
2025 Will Be the Year of Revenue-Sharing Stablecoins
According to Delphi Digital’s Research Associate, Robbie Petersen’s latest prediction, “revenue-sharing” stablecoins such as USDG (Paxos), M (M0 Foundation), and AUSD (withAUSD) could potentially experience a tenfold increase in market share by 2025.
He explained that traditional stablecoins concentrate economic benefits with issuers. The model of revenue-sharing stablecoins, however, eventually “will prove directly correct” because of two key reasons:
First, they prioritize distribution by aligning incentives between issuers and applications. Instead of courting end-users directly, they target distribution channels such as FinTech apps. Such a system in place fosters mutual benefits and adoption.
Second, the model’s ability to harness collective network effects sets it apart. By incentivizing multiple apps to integrate the same stablecoin, a unified ecosystem of distributors amplifies adoption and usage, driving exponential growth.
Petersen also said that throughout 2025, Fintechs and market makers are expected to play crucial roles in steering users toward these stablecoins, which also serve their financial interests.
The Delphi Digital associate also predicted that stablecoins will evolve beyond their current role in decentralized finance (DeFi) to become a widely used medium of exchange. This evolution will be driven by fintechs adopting stablecoins to improve profitability and secure greater control over payment systems. As competition intensifies, stablecoin integration will shift from a strategic advantage to a necessity, which, in turn, will push monthly active stablecoin addresses past 50 million.
Visa to Prioritize Stablecoins Over Profits?
Petersen also said that Visa is expected to launch a stablecoin initiative, even at the cost of reducing its card network margins, as a strategic hedge against the growing risk of disruption from emerging players in the payments industry. He noted that rather than resisting change, Visa is likely to adopt stablecoins early and would prioritize long-term survival and relevance over short-term profits.
This highlights increasing pressure on traditional financial institutions to innovate in response to evolving technology and customer demands. This same logic is expected to influence other fintechs and banks to embrace stablecoin initiatives as well.
Interestingly, in July, Visa’s CEO, Alfred Kelly, spoke about the growing significance of stablecoins in the payments industry and said that these tokens have a “meaningful role” in the future. The exec also added that the company views stablecoins as a solution to the volatility of traditional cryptocurrencies like Bitcoin, combining price stability with the peer-to-peer nature of blockchain transactions.
Read the full article here
