SC: Rising stablecoin turnover may curb demand for new issuance

An increase in stablecoin turnover could limit demand for new issuance, according to an analysis by global investment bank Standard Chartered (SC). Turnover measures how frequently issued stablecoins are used, and a higher velocity allows the same supply to facilitate more transactions. In a report, SC explained that while it had expected stablecoin turnover to remain stable as the market expanded, the speed of use has actually increased, reducing the need for supply growth. The bank noted that turnover has seen limited change in emerging markets, where stablecoins are primarily used as a savings vehicle. USDC has been the main driver of the rise in turnover. Its usage frequency has rapidly increased since mid-2024 on networks like Solana and Base, expanding its utility as an alternative to traditional finance and in AI payments. In contrast, USDT has maintained a relatively low turnover rate, as its use remains centered on savings demand in emerging markets, the report added.