Stablecoins Will Grow Because They Can Reduce International Wires To 'Minutes Or Seconds,' Industry Experts States

Stablecoins are expanding beyond crypto trading and will soon impact broader financial systems, according to Eric Chen, CEO of Injective Labs,

What Happened: In an interview with Benzinga, Chen emphasized stablecoins are set to transform industries by addressing inefficiencies in mainstream finance and enhancing transaction speed and accessibility across global markets.

He believes stablecoins will soon become a cornerstone of major financial processes, particularly in areas such as cross-border payments and capital formation.

“We’re talking about reducing any sort of international wire or transfer down to the matter of minutes or seconds,” Chen told Benzinga.

While their initial focus has been on trading and speculation, stablecoins' true power lies in their ability to bridge gaps in the existing financial system, providing faster and more secure transactions compared to legacy systems like SWIFT, according to Chen.

He also pointed out that, by removing intermediaries and the lengthy processes involved in traditional finance, stablecoins could significantly reduce costs and increase accessibility, especially for markets and regions that have been historically underserved by financial services.

Beyond payments, Chen sees stablecoins playing a critical role in broadening access to financial markets. “You’re going to see an order of magnitude increase in activity or market size within the financial industry,” Chen predicted.

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Why It Matters: Chen's vision of stablecoins' role in modern finance aligns with recent developments from major fintech firms like Stripe.

Earlier this week, Stripe confirmed its acquisition of the stablecoin platform Bridge in a deal reportedly valued at $1.1 billion.

Stripe CEO Patrick Collison praised stablecoins, stating, “Stablecoins are room-temperature superconductors for financial services.”

Chen described a future where stablecoins make it easier for individuals, particularly outside the U.S., to access global financial products like stocks, bonds, and other investment instruments.

Currently, these processes are slow, costly, and inaccessible to many, but Chen believes blockchain solutions can democratize access on a global scale.

The CEO's forward-looking vision is already being realized, as fintech giants like PayPal enter the stablecoin market, bringing decentralized finance (DeFi) and traditional finance closer together.

With these developments, Chen believes collaborations between fintech platforms and stablecoin providers will only increase, removing bottlenecks and improving liquidity across financial ecosystems.

These trends will be a major topic of discussion at Benzinga's Future of Digital Assets event on Nov. 19, where industry leaders will discuss how stablecoins and blockchain technologies are transforming not just financial markets, but the global economic landscape.

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