Stablecoins Gain Popularity in Emerging Markets for Daily Transactions

A new report by Castle Island Ventures and Brevan Howard highlights the increasing role stablecoins are playing in everyday financial transactions in emerging markets. The survey, which involved over 2,500 cryptocurrency users from Brazil, Nigeria, Turkey, Indonesia, and India, revealed that while access to crypto markets remains a primary reason for using stablecoins, other non-digital asset applications are becoming more common.

Among the respondents, 69% have converted their local currencies to stablecoins, while 39% reported using them to purchase goods and services or send money to family abroad. Around 30% of users have employed stablecoins for business transactions, and 23% have even received or paid salaries in stablecoins.

Efficiency and Trust Drive Stablecoin Adoption

One major factor driving stablecoin use is efficiency. Users prefer stablecoins for cross-border payments and currency conversions, finding them faster and more reliable than traditional banking systems. Additionally, the potential to earn yields and avoid government interference make stablecoins an attractive option, particularly in regions with less stable banking infrastructures.

Tether (USDT), the largest stablecoin by market capitalization, remains especially popular due to its liquidity, user trust, and network effects. Most users cited Ethereum (ETH) as their preferred blockchain for stablecoin transactions, followed by Binance Smart Chain (BNB), Solana (SOL), and Tron (TRX).

Nic Carter, General Partner at Castle Island Ventures, noted in an X post, “What we found validated our beliefs about stablecoins: they are being used not just for crypto trading, but increasingly feature in the ordinary economic lives of these individuals.”

Stablecoins have grown into a $160 billion asset class within the crypto sector, acting as a bridge between digital assets and fiat currencies. However, in emerging markets with a history of currency devaluation, stablecoins are becoming a safe haven and affordable payment method, offering an alternative to unstable local currencies and less developed financial systems.