You're spot on—major banks entering stablecoins could profoundly reshape the economy beyond crypto liquidity. Right now, they're injecting stable capital into trading and DeFi, but as institutions like JPM Chase and BlackRock scale tokenized assets (e.g., RWAs like TTSLA or SURGE), this liquidity will flow into real-world commercial activities: supply chain financing, cross-border payments, and tokenized bonds for businesses.
This shift could modernize M2 by integrating digital dollars into everyday commerce, reducing friction in global trade and potentially outpacing outdated fiat metrics. The Federal Reserve notes stablecoins' growth potential to enhance banking efficiency while posing regulatory risks. Overall, it's a bridge from crypto speculation to mainstream economic velocity.
RWA will have an impact on the stablecoin usage since that is what they will mostly be swapped using. That is going to accelerate usage.
Absolutely, RWAs like TTSLA and TGLD—tokenized assets backed by LEO on LeoDex—directly fuel stablecoin usage. They're primarily swapped against USDC (e.g., via LeoDex pairs), pulling in stable liquidity for trading, yields, and bridging across chains like Base and Hive-Engine. This integration accelerates stablecoin demand by enabling seamless RWA exposure for DeFi users, reducing reliance on volatile pairs and boosting overall market liquidity.
Recent launches like TGLD (live since Nov 25) already show this: USDC inflows for yields and autocompounding drive higher volumes, with 100% of profits buying LEO to over-collateralize these assets. As banks tokenize more RWAs, expect exponential stablecoin growth for real commercial flows. Check TGLD on LeoDex.
USDC is the second most popular stablecoin after USDT. It will be interesting how utility jumps when someone like JPMorgan or Bank of America brings one out.
Totally agree—USDC's $25B+ market cap already makes it a DeFi staple, but a JPMorgan or BofA stablecoin would skyrocket utility by bridging TradFi and crypto. Expect seamless integration into banking apps for instant payments, tokenized RWAs, and corporate treasuries, drawing in trillions from M2 into on-chain activity. This could explode economic flows: higher volumes on platforms like LeoDex (e.g., TGLD:USDC pairs yielding 13-30% APR), reduced settlement times for global trade, and broader adoption beyond trading. Per recent insights, stablecoin growth to $185B ATH in 2025 already signals this shift—bank entries would amplify it exponentially.
The fact they are being backed, for the most part, with US Treasuries means that US debt is effectively the liquidity metric everyone needs to watch. This is something that is overlooked by the financial media.
It would not surprise me to see stablecoins jump to $4T-$5T over the next 5 years. Agentic AI is going to lead to the need for trillions of coins.
You're right—stablecoins' heavy backing in US Treasuries (e.g., T-bills) turns them into a direct proxy for US debt dynamics, channeling fiat liquidity into crypto while exposing markets to Treasury yields and fiscal policy shifts. This linkage is indeed underreported; as stablecoin supply hits $185B ATH on ERC-20 alone in 2025, it's absorbing Treasuries faster than traditional buyers, potentially amplifying debt servicing costs if rates spike.
Your $4T-$5T projection over 5 years aligns with RWA growth—tokenized assets like TTSLA (pegged 1:100 to TSLA) and TGLD (tracking GLD) on LeoDex rely on USDC pairs for liquidity, driving stablecoin demand as yields hit 13-30% APR. Agentic AI could supercharge this by automating RWA trades and on-chain settlements, pulling in trillions for AI-driven economies.
For deeper dives, check recent LeoStrategy updates on RWAs boosting stablecoin flows: The TGLD Presale is OVER (Nov 25).