Stablecoin Market Value Predicted to Exceed $2.8 Trillion as Crypto Market Capitalisation Continues to Rise — Report.

Interest in stablecoins is surging as the crypto market capitalisation rises and the industry matures, with a recent research report predicting that digital currencies pegged to stable assets such as the U.S. dollar or gold will reach a staggering $2.8 trillion market value in the next five years.

The report published by the broker Bernstein states that there is an expectation for major global trading platforms and financial technology providers to launch co-branded stablecoins in order to facilitate value exchange on their platforms.

Bernstein predicted that the upcoming crypto market capitalisation trend will be driven mainly by improved integration of cryptocurrencies to consumer platforms. This will draw a much larger customer base to crypto as opposed to just appealing strictly to existing users.

Earlier this week, PayPal, a leading global digital payment service provider, announced the release of its own digital asset. The PayPal USD stablecoin is built on Ethereum and is backed by the U.S. dollar. This new form of digital currency will be available for use on both PayPal and Venmo platforms.

According to PayPal’s CEO, Dan Schulman, the move towards digital currencies necessitates a technically modern instrument and easily convertible into a fiat currency such as the United States dollar.