SS #90 - Stablecoins Could Hit $1.5Q by 2035

📢 Sponsor | 💡 Telegram | 📰 Past Editions

Good morning.

Stablecoin transaction volume is on track to hit $1.5 quadrillion by 2035, but the more telling number is the $28T in real economic activity already processed in 2025, the speculative phase is over and the race to own onchain payment infrastructure has quietly begun.

Enjoy the read!

Let us know what sort of coverage you would like to see from the new publication.

If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: Stablecoins Could Hit $1.5Q by 2035 📈 

• Quick Bites: Stablecoin FX nears 'institutional-grade' parity with bank rails 👀 

• Yield of the Week: Steakhouse High Yield USDC’s 10.77% APY

You read and share. We listen and improve. Send us feedback at [email protected].

HEADLINE

State of play: Chainalysis projects stablecoin transaction volume could reach $1.5 quadrillion by 2035, putting onchain payments on a path to rival Visa and Mastercard within a decade.

• Baseline growth alone pushes adjusted stablecoin volume to $719T by 2035, with macro tailwinds stretching the ceiling to $1.5 quadrillion.

• A $100T generational wealth transfer from 2028 to 2048 is expected to accelerate crypto-native payment adoption as Millennials and Gen Z inherit assets.

• Stablecoins processed roughly $28T in real economic activity in 2025, stripping out trading noise to focus on payments, remittances, and settlement.

• Stripe and Mastercard's acquisitions of Bridge and BVNK signal stablecoins are moving from edge case to core payments infrastructure.

• A White House report found limited evidence that stablecoin yields would harm bank lending, easing concerns about deposit flight as regulation evolves.

What’s Next: The GENIUS Act's fate sets the pace. Regulatory clarity pulls the Visa/Mastercard parity window forward; gridlock pushes it out.

Why it Matters: $28T in real economic activity last year means this isn't speculative anymore. The question is who controls the rails when payments go fully onchain.

Our Take: $1.5 quadrillion is a ceiling, not a promise. But the floor is already high enough to matter, and TradFi is quietly repositioning before most users notice.

QUICK BITES

• Circle launches no-hold USDC payments.

• US Treasury unveils proposed stablecoin rules targeting ML, sanctions.

• UBS, Sygnum, PostFinance join banks in Swiss franc stablecoin sandbox.

• White House stablecoin report unlikely to change hurdles for crypto bill.

• S. Korea to bring RWAs and stablecoins under existing financial frameworks.

• Polygon Labs seeking to raise up to $100M for stablecoin payments business.

• Stablecoin FX nears 'institutional-grade' parity with bank rails in LATAM and East Africa.

YIELD OF THE WEEK

Steakhouse High Yield USDC: 10.77% APY

• The vault accepts USDC deposits on Avalanche and actively allocates capital across money markets, fixed-income protocols like Spectra, and liquidity pools including Curve, Balancer, and Pharaoh, with ~$1.11M in total deposits.

• Capital is dynamically deployed across Avalanche DeFi protocols, with additional exposure to ecosystem reward programs, pre-TGE tokens, and governance incentives to boost returns.

• Yield is generated from lending activity, fixed-income strategies, and liquidity provision across Avalanche DeFi, compounding returns into the vault at a 10.15% net APR after a 20% performance fee and 0% management fee.

reUSDe (re.xyz): 12.0% APY

• The vault accepts USDe deposits and provides mezzanine tranche exposure to re.xyz's insurance underwriting platform, with ~$17.13M in TVL and also earning Re Points and 5x Sats.

• Capital is held in Fireblocks custody and deployed into regulated reinsurance programs backing real insurance policies, with idle capital automatically earning the sUSDe rate while awaiting deployment.

• Yield is generated from reinsurance premiums on regulated insurance programs plus idle sUSDe yield on undeployed capital, accruing daily through price appreciation at a fixed 12.0% APY with quarterly redemption windows.

bravUSDC (Avant+ DeFi Yield): 11.79% APY

• The vault accepts USDC deposits on Avalanche and deploys capital across the Avant ecosystem, leveraging savUSD, incentivized liquidity pools, and borrow/lend arbitrage opportunities, with ~$2.71M in total deposits.

• Capital is deployed across Avalanche-native protocols including Silo Finance, Euler, and Benqi for lending/borrowing, with DEX liquidity provision on Trader Joe and Blackhole, and cross-chain exposure via Stargate and CCTP bridges.

• Yield is generated from Avant's native yield-bearing assets, borrow/lend arbitrage, and liquidity pool incentives, compounding at 11.79% net APY after a 1.5% management fee and 20% performance fee.

If you enjoy reading this issue, please consider subscribing. It takes 1 minute of your time, but it would mean the world to us 🙇

Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.