2025 may become a turning point for Blockchain financial applications, with stablecoin market capitalization possibly exceeding one trillion dollars.

Recently, a research report on the digital dollar has attracted widespread attention in the industry. The report predicts that 2025 may become an important turning point for the application of Blockchain in the financial and public sectors, a trend primarily driven by regulatory changes.

The report holds an optimistic view on the prospects of the stablecoin market. It is expected that by 2030, the total circulating supply of stablecoins could increase to $1.6 trillion under the baseline scenario, reach $3.7 trillion in the optimistic scenario, and even in the pessimistic scenario, it is expected to reach around $500 billion. It is anticipated that dollar-denominated stablecoins will continue to dominate, accounting for about 90% of the market share. Meanwhile, countries outside the U.S. may be more inclined to promote the development of their own central bank digital currencies.

The regulatory framework for stablecoins in the United States may stimulate new demand for U.S. Treasury bonds. By 2030, stablecoin issuers are expected to become one of the major holders of U.S. Treasury bonds.

Although stablecoins pose a certain threat to traditional banking by replacing some deposit functions, they also create new service opportunities for banks and financial institutions.

The operation mechanism of stablecoins includes key components such as the issuer, Blockchain ledger, reserves and collateral, and digital wallet providers. Currently, the stablecoin market is mainly dominated by two major stablecoins, which hold over 90% of the market share.

Factors driving the widespread adoption of stablecoins in the U.S. and globally include: practical advantages such as speed, low cost, availability 24/7, macro demand such as hedging against inflation, enhancing financial inclusion, support and integration from existing banks and payment providers, and clarification of the regulatory environment.

Experts believe that the future application scenarios for stablecoins may include various fields such as cryptocurrency trading, inter-company payments, consumer remittances, institutional trading and capital markets, interbank liquidity, and fund management.

In the long run, the stablecoin market may show a development trend similar to that of the bank card industry, with some dominant participants emerging. At the same time, for reasons of national strategic autonomy, many countries may continue to advance their central bank digital currency projects, especially in the wholesale and corporate payment sectors.

For the banking industry, the development of stablecoins brings both opportunities and risks. On one hand, banks can explore new business opportunities by participating in the stablecoin ecosystem; on the other hand, the transfer of deposits to stablecoins may affect banks' traditional lending capabilities. Balancing development in this emerging field will be an important issue facing the banking industry.