TechFlow, December 2 — According to a recent research report by Sweden's central bank, the global stablecoin market has surged from $4 billion in January 2020 to $272 billion by October 2025, with 99% pegged to the U.S. dollar. The report notes that stablecoins, as digital assets based on distributed ledger technology, are expanding beyond cryptocurrency trading into real-world applications such as decentralized finance and cross-border payments.
The European Union has implemented MiCA regulations to supervise stablecoins, requiring issuers to maintain full asset backing and ensure immediate redemption at face value. In contrast, the United States passed the GENIUS Act in July 2025, allowing for a broader range of permissible reserve assets.
The report warns that stablecoins may exacerbate currency substitution (dollarization), pose financial stability risks, and trigger asset runs, while also acknowledging their potential to improve payment services. Central banks are considering whether to permit stablecoin issuers to use central bank settlement systems and reserves as supporting assets, in response to the growing influence of stablecoins within the financial system.
