Cross-border US stock trading for Asia-Pacific investors accelerates with Stanchart's introduction of stablecoin FX for faster T+1 settlements
Zodia Markets, a crypto brokerage and exchange founded by Standard Chartered's SC Ventures, has pivoted to an over-the-counter (OTC) FX settlement solution for cross-border payments involving stablecoins. The shift comes as the company, which was trading $50-$60 million a day by the middle of this year, anticipates a significant growth in the use of stablecoins.
A recent report from Standard Chartered and Zodia Markets predicts that stablecoin transaction volumes will grow to 10% of US M2 transactions and 10% of foreign exchange (FX) transactions. This growth is expected to be driven by U.S. regulation, as stablecoins could provide a solution for non-US traditional finance (TradFi) investors facing foreign exchange challenges.
The US move to T+1 for equity settlement could pose challenges for non-US TradFi investors, as it may increase the need for quick and efficient cross-border transfers. Stablecoins, with their promise of faster and cheaper transactions, could be a viable solution to this problem.
Zodia Markets is currently trialing the use of stablecoins, and the report suggests that they could be used by non-US TradFi investors to bypass foreign exchange challenges. The company, initially launched in 2022 by Abbas Ali and Ruchir Gupta, has already demonstrated its capabilities in the crypto space and is now poised to make a significant impact in the FX market.
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In conclusion, the future of stablecoins in the FX market looks promising, with Zodia Markets leading the charge. As the use of stablecoins continues to grow, we can expect to see more companies following in Zodia's footsteps, making cross-border payments faster, cheaper, and more efficient.
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