Zodia Markets Predicts Stablecoin Boom, Offers OTC FX Settlement
Zodia Markets, a crypto brokerage and exchange launched in 2022 by Standard Chartered's SC Ventures, is making waves in the financial world. The company predicts a significant rise in stablecoin transaction volumes, driven by U.S. regulations. It has recently pivoted to offer an over-the-counter (OTC) FX settlement solution for cross-border payments involving stablecoins.
Zodia Markets' growth is tied to the increasing popularity of stablecoins, which are digital assets pegged to the value of traditional currencies like the US dollar. The U.S. government's move to implement T+1 equity settlement has led non-US TradFi investors to explore stablecoins as a means to address foreign exchange challenges.
The U.S. government's directive aims to promote regulatory clarity and innovation in digital assets while ensuring consumer protection and financial stability. This has resulted in a surge in stablecoin transaction volumes and their share in FX transactions. Standard Chartered and Zodia Markets predict that these volumes will grow to reach 10% of US M2 and stock market transactions.
In response to this growth, Zodia Markets has shifted its focus to provide an OTC FX settlement solution for cross-border payments involving stablecoins. By mid-2023, the company was trading an impressive $50-$60 million a day.
Zodia Markets' prediction of stablecoins' transaction volumes growing to 10% of US M2 and stock market transactions signals a significant shift in the financial landscape. The company's pivot to offer an OTC FX settlement solution for stablecoin cross-border payments demonstrates its commitment to adapting to the changing regulatory environment and meeting the evolving needs of its clients.
