Bitwise sees tech giants driving stablecoin growth

Bitwise chief investment officer Matt Hougan said stablecoins could scale into a multi-trillion-dollar market if major technology companies continue integrating them into payment systems.

Hougan said recent pilot programmes involving Meta and DoorDash had increased his confidence that stablecoins could eventually reach hundreds of millions of users and trillions of dollars in assets.

The comments come as the global stablecoin market approaches a valuation of $318 billion, while Citigroup previously projected the sector could grow to $4 trillion by 2030 under a best-case scenario.

“On a relative basis, these are not a big deal,”

Hougan said of the projects, adding:

“But they've answered a question I've had about stablecoins for a long time.”

Meta recently launched stablecoin payouts for creators in the Philippines and Colombia, while DoorDash said it would begin offering stablecoin payment options for users, workers and merchants.

“To really scale to hundreds of millions of users, stablecoins are going to need the support of very large players,”

Hougan said.

Hougan argued that stablecoins simplify global payments for multinational companies by reducing the need for traditional banking infrastructure and currency conversion systems while lowering transaction costs.

Visa has also expanded its stablecoin settlement pilot to five additional blockchains as transaction volumes on its network continue to increase, while US lawmakers advance legislation designed to regulate stablecoin issuers and reserve backing requirements.

However, US banking groups continue lobbying against broader stablecoin adoption, warning that digital dollar tokens could compete with traditional bank deposits and weaken parts of the banking system.