Stablecoins & Smart Money

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Right then, it appears the world of finance has developed a bit of a fancy for these ‘stablecoins’ – a rather ingenious notion, really, of digital money attempting to behave like, well, actual money. In the last twelve months, they’ve positively burst onto the scene, amounting to a most respectable three hundred billion dollars’ worth. One hears whispers from the top brass at the U.S. Treasury that, by 2030, this figure could swell to a truly staggering three trillion. Good heavens!

And it isn’t merely the financial wizards who are taking notice. Consumers, it seems, are increasingly receptive to the idea of settling their accounts with these digital doohickeys. New CORP-DEPO research suggests that a full fifty percent of American shoppers wouldn’t bat an eye at paying with a stablecoin. Among the younger generation – those Gen Z chaps and millennials just out of the starting gate – the figure rises to a positively enthusiastic seventy-one and sixty percent respectively. Quite the trend, what?

However, a spot of bother presents itself. One won’t exactly become a Rothschild by simply holding stablecoins, you see. They’re pegged one-to-one with the American dollar, which is all very sensible, but it does rather limit the potential for spectacular gains. Therefore, one must be a bit clever, a bit resourceful, in seeking exposure to this burgeoning industry. A dash of ingenuity is required, wouldn’t you agree?

The Stablecoin Issuers – A Most Promising Avenue

The most straightforward approach, naturally, is to invest in the companies actually issuing these stablecoins. It’s a decidedly lucrative business, and a number of prominent firms are attempting to muscle their way in. One can hardly blame them.

Take, for example, Circle Internet Group (CRCL +0.90%). They went public last summer with a good deal of fanfare, and are the proud originators of USDC (USDC 0.01%), the second-largest stablecoin in existence, boasting a market capitalization of a rather impressive seventy-eight and a half billion dollars. If more of the younger set begin using USDC for their purchases, that figure could, of course, climb even higher. A most promising outlook, wouldn’t you say?

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One might also consider PayPal (PYPL 2.65%). Many investors, I suspect, aren’t aware that PayPal launched its own stablecoin in 2023 – PayPal USD (PYUSD 0.03%) – and that it’s gaining traction at a remarkable pace. It now has a market cap of around four billion dollars, placing it amongst the top twenty-five cryptocurrencies in the world. Though, admittedly, stablecoins still represent a rather modest portion of PayPal’s overall business. Still, a company to keep an eye on, certainly.

The Blockchain Backbone – A Bit More Complicated, What?

Another route, albeit a slightly more intricate one, is to invest in the blockchains that are leading the charge in stablecoin adoption. The likes of Ethereum (ETH +2.79%), Tron, and Solana spring to mind. However, this involves investing directly in cryptocurrencies, rather than through a publicly traded company. A bit of a pickle, wouldn’t you agree?

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My top recommendation, in this instance, would be Ethereum. Its leadership in the realm of decentralized finance (DeFi) is undeniable. Ethereum is one of the finest places to discover DeFi protocols that allow one to earn a yield on their stablecoins. Just as with one’s regular funds, one can, in effect, make one’s money work for one. However, investing in blockchains such as Ethereum or Solana does present a similar challenge as investing in publicly traded companies: stablecoins are something of an afterthought, rather than a core offering.

With that in mind, one anticipates the emergence of new blockchains specifically designed for stablecoins. Circle, for example, recently assisted in the launch of Arc, a new blockchain for stablecoin finance that utilizes USDC for transaction fees. Unfortunately, there isn’t a crypto token for Arc just yet. If that’s what one has in mind, one might consider Stable, which currently ranks among the top seventy-five cryptocurrencies, with a market cap of six hundred million dollars.

Companies Embracing the Future – A Sensible Approach, Indeed

Finally, investors can place their funds in companies that derive revenue from stablecoins or are integrating them into their broader business strategies to streamline operations. Coinbase Global and Robinhood Markets are prime examples. Coinbase earns money from USDC, while Robinhood is incorporating stablecoins to enable near-instant settlement for trading and cross-border payments. A most sensible approach, wouldn’t you say?

Furthermore, Coinbase is actively promoting greater consumer adoption of stablecoins. Notably, they partnered with Shopify last year to roll out new USDC functionality for shop owners. The idea, naturally, is that consumers will eventually use stablecoins to make payments faster, easier, and cheaper.

This ties directly into the CORP-DEPO research on stablecoin usage. Consumers indicated that they would be willing to use stablecoins to reduce debit or credit card processing fees, thereby lowering their overall costs. A shrewd observation, wouldn’t you agree?

My Top Pick – A Clear Winner, By Jove!

My top recommendation, without a doubt, is Circle. It’s as close to a pure-play stablecoin investment as one is likely to find. While numerous companies are experimenting with stablecoins, Circle has built its entire business model around them.

Since its IPO in June 2025, Circle is up 44%. Even better, Circle stock is up a robust 42% in 2026. Arguably, stablecoins have become one of the few bright spots in the crypto market this year, and Circle may be the best way to leverage that trend. A rather promising outlook, wouldn’t you say?

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2026-03-13 12:23