Stablecoins are poised for widespread adoption in 2025, driven by the Trump administration’s push for comprehensive cryptocurrency regulation, according to a report from Deutsche Bank released Monday.

Despite recent setbacks in the Senate, the bank anticipates steady progress on stablecoin regulation this year.

Stablecoins, digital currencies pegged to assets like the U.S. dollar or gold, have grown essential in cryptocurrency markets and are increasingly utilized for international money transfers. Their role in the crypto ecosystem continues to expand, supported by their speed, low transaction costs, and accessibility around the clock.

The Senate’s proposed Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act calls for federal regulation of stablecoins with a market cap exceeding $10 billion, with room for state-level regulation should it align with federal standards. In contrast, the House’s STABLE Act advocates for state regulation without any federal oversight.

Stablecoin market capitalization has skyrocketed in the past five years, reaching $246 billion, compared to just $20 billion in 2020. Tether’s USDT, the leading stablecoin, holds a market cap of approximately $150 billion.

Deutsche Bank analysts Marion Laboure and Camilla Siazon noted that stablecoins now account for over two-thirds of crypto trading, offering unmatched efficiency, low-cost payments, and seamless transactions.

The report further emphasizes the increasing strategic importance of stablecoins. With 83% pegged to the U.S. dollar, and Tether among the top holders of U.S. Treasuries, stablecoins are reinforcing the dollar’s global dominance amidst a rapidly changing financial landscape.

The GENIUS Act is expected to pass soon, and according to Standard Chartered, this could lead to a nearly tenfold increase in stablecoin supply, further accelerating their growth and prominence in global finance.