Revenue-sharing stablecoins poised for 10x growth by 2025, Delphi Digital predicts

Stablecoins have seen tremendous growth in the past year. Their collective market capitalization recently reached a milestone of $200 billion.

Beyond the popular ones like Tether’s USDT and Circle’s USDC, industry players are now predicting a new wave of “revenue sharing” stablecoin entry.

2025 will be the year of income sharing stablecoins

According to Delphi Digital research associate Robbie Petersen’s latest prediction, “revenue sharing” stablecoins such as USDG (Paxos), M (M0 Foundation) and AUSD (with AUSD) could see a surge of ten times the market share by 2025.

He explained that traditional stablecoins concentrate economic benefits with the issuers. The revenue-sharing stablecoin model, however, will eventually “prove straight-up right” for two key reasons:

First, they prioritize distribution by aligning incentives between issuers and applications. Instead of courting end users directly, they are targeting distribution channels such as FinTech apps. This system in place encourages mutual benefits and adoption.

Second, the model’s ability to take advantage of collective network effects sets it apart. By incentivizing multiple applications to integrate the same stablecoin, a unified ecosystem of distributors amplifies adoption and usage, driving exponential growth.

Petersen also said that during 2025, fintechs and market makers are expected to play a crucial role in steering users towards these stablecoins, which also serve their financial interests.

The Delphi Digital associate also predicted that stablecoins will evolve beyond their current role in decentralized finance (DeFi) to become a widely used medium of exchange. This evolution will be driven by fintechs adopting stablecoins to improve profitability and ensure greater control over payment systems. As competition intensifies, stablecoin integration will move from a strategic advantage to a necessity, which in turn will push monthly active stablecoin addresses past 50 million.

Visa to prioritize stablecoins over profits?

Petersen also said that Visa is expected to launch a stablecoin initiative, even at the cost of reducing margins on its card network, as a strategic hedge against the growing risk of disruption from emerging players in the card industry. payments He noted that rather than resisting change, Visa is likely to adopt stablecoins soon and prioritize long-term survival and relevance over short-term profits.

This highlights the growing pressure on traditional financial institutions to innovate in response to evolving technology and customer demands. This same logic is expected to influence other fintechs and banks to adopt stablecoin initiatives as well.

Interestingly, in July, Visa CEO Alfred Kelly spoke about the growing importance of stablecoins in the payments industry, saying that these tokens have a “significant role” going forward. The executive also added that the company views stablecoins as a solution to the volatility of traditional cryptocurrencies like Bitcoin, combining price stability with the peer-to-peer nature of blockchain transactions.

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