Stablecoins To Be Next Trillion-Dollar Market, Outpacing ETFs: Expert

Gabor Gurbacs, an advisor to prominent stablecoin issuer Tether, has argued the potential of stablecoins to become a transformative force in the financial markets, comparing their future to the explosive growth of investment vehicles like exchange-traded funds (ETFs).

In a statement on X, Gurbacs contended that stablecoins possess the key attributes necessary to create the next multi-trillion-dollar market. He first highlighted the historical evolution of investment wrappers, progressing from stocks to hedge funds, mutual funds, and ETFs.

According to him, each contributed to the creation of multi-trillion-dollar markets. Gurbacs expressed a firm belief that stablecoins will be the next significant development in the trajectory.

To support his claim, he outlined several attributes substantiating the potential for stablecoins to catalyze the emergence of the next multi-trillion-dollar markets. In particular, the Tether advisor compared the unique offerings of stablecoin against stocks, hedge funds, mutual funds, and ETFs. He highlighted that the four traditional investment vehicles have low disruptive potential compared to stablecoin.

Also, Gurbacs outlined stablecoins applicability to commerce and payment, an area all four traditional investments fall short of. He further noted that stablecoins have low network fees compared to high management fees on the other side. Besides, he pointed to the ease of accessibility where stablecoins only require digital wallets.

Furthermore, Gurbacs reflected on the evolution of Tether’s USDT stablecoin. He pointed out that back in 2017, the market capitalization of USDT was a modest sum, standing under $100 million. At that time, he had alerted Wall Street to the potential of Tether, suggesting that it could reach a substantial $100 billion market cap.

Interestingly, five years later, Tether is now on the cusp of achieving the projected milestone. The Tether advisor noted the firm’s reserves are closing in on the $100 billion mark. Gurbacs anticipates the next five years will bring about a transformational period for stablecoins and their role in the financial landscape.

According to data from CoinMarketCap, the stablecoin market currently has a valuation of $130,672,114,108. Leading stablecoins include USDT, USDC, DAI, and TrueUSD.