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BlackRock Bitcoin ETF Surpasses Its Flagship S&P 500 Fund in Revenue, as BTC Exchange Flows Plunge to 3-Year Lows

By
Paul Ugbede Godwin
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0

BlackRock’s iShares Bitcoin Trust ETF (IBIT) has out-earned its 25-year-old iShares Core S&P 500 ETF (IVV) in annual fee revenue, marking a significant milestone for cryptocurrency’s integration into traditional finance.

This development, first reported in July 2025 and reaffirmed in recent analyses, underscores the explosive demand for regulated Bitcoin exposure amid the asset’s price rally to new highs.

As of early October 2025, IBIT’s revenue lead has widened further, driven by its rapid asset growth and higher fee structure. IBIT launched in January 2024 as one of the first U.S. spot Bitcoin ETFs, quickly becoming BlackRock’s fastest-growing product.

Despite managing far fewer assets than IVV, IBIT generates more revenue due to its expense ratio being over eight times higher 0.25% vs. 0.03%. This “revenue density” highlights how crypto products command premium fees in a nascent market, contrasting with the fee compression in mature equity ETFs.

Bloomberg analyst Eric Balchunas October 2025 update; earlier July 2025 figures showed a narrower gap of $187.2M vs. $187.1M. IBIT has seen inflows in 17 of its first 18 months, attracting institutions like hedge funds and pensions seeking Bitcoin as a “store of value” without direct custody risks.

This reflects broader Wall Street adoption, with Bitcoin ETFs capturing $54 billion in total inflows since approval. As the world’s largest asset manager $10+ trillion AUM, BlackRock’s CEO Larry Fink has called Bitcoin “digital gold.”

IBIT now ranks as the firm’s top revenue-generating ETF, outpacing even other iShares staples. Analysts predict this could pave the way for ETFs on Ethereum, Solana, or tokenized real-world assets (RWAs).

The milestone signals Bitcoin’s maturation beyond speculation. With BTC trading around  $124,000 13% above of all-time highs as of July 2025, July’s historical 7% average gains suggest momentum could push IBIT toward $100 billion AUM soon—faster than Vanguard’s S&P 500 ETF took over 5 years to hit that mark.

This isn’t just about fees; it’s reshaping portfolios. Traditional investors can now blend Bitcoin for hedging inflation/volatility with S&P 500 exposure seamlessly. However, Bitcoin’s higher volatility means IBIT suits risk-tolerant allocations, not core holdings.

Bitcoin is earning blackrock the same money as the entire u.s. stock market index, with a fraction of the capital,” fueling speculation on an “altcoin ETF wave.

The fact that BlackRock’s iShares Bitcoin Trust ETF (IBIT) is out-earning its 25-year-old iShares Core S&P 500 ETF (IVV) in annual fee revenue carries significant implications for investors, the financial industry, and the broader cryptocurrency market.

Investors can now seamlessly include Bitcoin alongside traditional assets like stocks and bonds, potentially redefining portfolio diversification strategies. Bitcoin’s low correlation with equities makes it appealing as a hedge against inflation or market volatility.

IBIT’s 0.25% expense ratio, compared to IVV’s 0.03%, highlights the lucrative nature of crypto ETFs. With IBIT generating $244.5 million annually vs. IVV’s $204 million despite managing 7x fewer assets, asset managers can charge premium fees for crypto products due to their novelty and complexity.

BlackRock’s success with IBIT may spur competitors to launch or expand their own crypto ETFs, potentially covering altcoins like Ethereum or Solana, or even tokenized real-world assets (RWAs). This could accelerate product development in the crypto space.

For BlackRock, IBIT’s outperformance diversifies revenue away from low-fee equity ETFs, which face fee compression in mature markets. Other asset managers may follow suit to capture similar high-margin opportunities.

IBIT’s $52 billion in net inflows since its January 2024 launch 55% of the Bitcoin ETF market reflects strong investor appetite, particularly from institutions. This demand could drive further Bitcoin price appreciation, as Bitcoin trade around $124,000.

Bitcoin ETFs are generating outsized revenue with a fraction of the capital of equity ETFs. This efficiency could shift capital flows toward crypto, potentially challenging the dominance of traditional index funds in investor portfolios.

While IBIT offers regulated access, Bitcoin’s higher volatility compared to the S&P 500 means it’s better suited for risk-tolerant investors or smaller portfolio allocations. Investors must weigh potential returns against price swings.

The success of IBIT, following the SEC’s approval of spot Bitcoin ETFs in January 2024, may encourage regulators to greenlight more crypto-based financial products. This could include ETFs for other cryptocurrencies or innovative structures like tokenized asset funds.

BlackRock’s pivot to crypto aligns with its exploration of tokenizing real-world assets like real estate, bonds. IBIT’s profitability could fund further blockchain-based innovation, reshaping capital markets.

As more crypto ETFs enter the market, competition could drive down expense ratios, eroding the revenue advantage IBIT currently enjoys. Bitcoin’s rally and ETF accessibility could create wealth for early adopters but widen inequality if gains concentrate among institutions or high-net-worth investors.

This milestone is a pivotal moment for crypto’s integration into mainstream finance, with BlackRock’s IBIT signaling a new era of profitability and investor interest. However, it also underscores the need for careful risk assessment in this rapidly evolving space.

Bitcoin’s Exchange Flows Plunge to 3-Year Lows

Bitcoin (BTC) is riding high in early October 2025, trading steadily above $124,000 after smashing through a new all-time high of $126,000 earlier this week.

This surge isn’t just fueled by retail FOMO—on-chain metrics are painting a picture of deepening scarcity and holder conviction. Specifically, Bitcoin’s exchange net flows have cratered to their lowest levels in nearly three years, with a 14-day simple moving average (SMA) of net flow at -7,210 BTC as of October 4.

This means more BTC is being withdrawn from exchanges than deposited, a classic sign that long-term holders (HODLers) are opting to self-custody rather than sell. Over 7,200 BTC have exited exchanges in recent days, per CryptoQuant data.

This outflow reflects both short- and long-term holders stacking sats, reducing available liquidity on centralized platforms. Exchange reserves have dipped to around 2.4 million BTC—their lowest in six years—amplifying the “supply shock” narrative.

Spot Bitcoin ETFs have seen massive inflows, clocking nearly $1 billion in just three days and $3.2 billion last week alone. Institutional demand is outpacing miner emissions by a 3:1 ratio, with firms like Strategy and treasury adopters locking up supply.

Combined with $14 billion in total exchange outflows over two weeks, this dynamic is squeezing sellers out of the equation. Similar low-flow periods in past cycles like in 2021 preceded explosive rallies.

Analysts note that 99.3% of BTC supply is now in profit, which could invite short-term profit-taking, but the structural scarcity points to upside bias. The stars are aligning for BTC to test $130,000 soon, potentially by mid-to-late October.

Declining exchange balances since 2019; ETF inflows sustaining uptrend. ETF-driven momentum; slight trim from prior $135K forecast. Bullish if holds $118K support; bear low at $70K.

Technically, BTC is coiling in a bull pennant pattern above the $122K–$124K EMA support, with RSI at 69 elevated but not overbought. A break above $126.5K could trigger a squeeze toward $130K, though a tactical pullback to $118K–$120K remains possible if profit-taking hits.

Resistance at $127K is the immediate hurdle, but with MACD flashing green and social euphoria building like the Saylor and Pomp hyping new highs, the path of least resistance is up.

Daily RSI divergence and a flipping MACD could spark a cooldown, especially with $113 million in shorts liquidated recently—more squeezes mean volatility. Geopolitical tensions or a hotter-than-expected CPI could test $114K–$115K support.

If flows reverse and ETF inflows stall, a drop to $108K isn’t off the table, but current metrics make this low-probability. In short, these 3-year low exchange flows are a green light for accumulation, not distribution.

If institutional bids keep pouring in, $130K isn’t just a target—it’s the floor for what’s next. Reduced supply on exchanges, with steady or growing demand, often drives Bitcoin prices higher as buyers compete for fewer available coins.

Scarcity can reduce trading volume, making it harder to buy or sell large amounts without significantly impacting the price. With less Bitcoin available, price swings can become more pronounced due to lower liquidity and heightened sensitivity to buy/sell orders.

Scarcity often signals that investors are moving Bitcoin to cold storage, indicating long-term holding and reduced selling pressure.

How to Write a Compelling Personal Recommendation

By
TI Partners
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0

There are many important situations where you’ll have to give your opinion on somebody else’s character to help others make a choice. In this post, we’ll look at five of these recommendations and how to guarantee the ones you write win people over.

1. Immigration Character Reference

Someone wanting to gain permanent residence in the US typically needs to prove they’ve spent their time here well. If they call upon your help, here’s how to write a character reference for US immigration courts:

  • Begin with an outline of your relationship to the person applying for residence
  • Discuss how long you’ve known them; this should ideally be at least a few years
  • Share genuine stories of when the person in question helped you/the community
  • If there are any problems with their application, try to explain them in context
  • Say directly that they’re of good moral character and would benefit the country

Tone-wise, you should be respectfully formal yet still earnest. This is a tricky balance to strike — just don’t try too hard to tug on a court’s heartstrings. They’ll see through this, and you might just jeopardize the application.

2. Court Character Reference

If someone you know is in court for a criminal offense, you might need to argue their side of the story. However, you can’t just say they’re a good person deep down.

First and foremost, don’t ignore the offense — the defendant has likely already pleaded guilty. Your reference is instead about encouraging a judge to show leniency, so be honest about what they’ve done.

Give examples of how the defendant is usually a kind, hardworking, moral person. Show that the mistake they made doesn’t have to define them, and that they can be rehabilitated. If they’ve already taken steps towards this (such as counselling or volunteering), mention them.

Ideally, the judge should feel compelled to give the defendant a lighter sentence. Regardless, a display like this shows the defendant that they have a support network, already lowering the risk of them reoffending.

3. Landlord Reference

As a landlord, you might have past tenants asking you for a reference. This could make or break them getting a new place, so consider showing leniency even if the tenancy wasn’t perfect. With this in mind, here’s how to write a landlord reference:

  • Confirm that the tenant paid their rent on time and in full
  • If there were rent issues, explain that these were resolved
  • Highlight how well the tenant treated your property
  • Specifically mention the property’s state when they left
  • If applicable, praise their behavior and respect for neighbors
  • Confirm how well they abided by the lease’s terms
  • Say if you’d happily rent to the tenant again — be direct

You should be honest about major issues with the tenancy; this serves as a fair warning to their next landlord. However, explain if the tenant had any reasons for these.

4. Employment Reference

Someone you worked with or managed might come to you for a job reference. Your goal here is to highlight their suitability for the position they’re going for.

Make sure you learn about this role before you write the reference, including specific duties and the skills they’ll need. This helps you tailor your reference to them and give specific examples of how their skills fit the job.

Summarize the duties they had while working for or with you, while giving examples of how they went above and beyond. This can include:

  • Consistently meeting targets during peak season
  • Finding ways to streamline existing processes
  • Helping team members with their duties
  • Similarly, mentoring new hires or junior colleagues
  • How they helped build a good workplace culture
  • Their ability to handle high-pressure environments

Ultimately, everything you say should help convince the company to hire them.

5. College Recommendation Letter

Your first time being asked to recommend someone to a good college is always special, though it’s also a lot of pressure. With an online template, however, you’ll know exactly where to start.

You don’t have to be a teacher to write this letter. You could be somebody else who works at the school (such as a coach), a private tutor, or even an employer. Regardless, your letter should go beyond the student’s grades, especially since the college likely already knows these.

If you do discuss their academic performance, focus on skills that grades alone won’t show. For example, give specific examples of their problem-solving abilities or creativity.

However, you must also emphasize the kind of person this student is. A college is a community, and talking about the student’s personality and contributions to school clubs can really help.

Final Thoughts

Whatever the type of recommendation you write, you have to be honest while understanding the person’s situation. With your help, they could get into the college of their dreams, stay in the US permanently, or even avoid jail time.

Register for Tekedia AI Lab, A Technical Program for Creating AI Agents [Next Begins Nov 15]

By
Ndubuisi Ekekwe
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0

Tekedia AI Lab: From Technical Design to Deployment is a hands-on eight-week program designed to empower learners with the practical skills needed to design, develop, and deploy AI systems and agents. Moving beyond theoretical concepts, the AI Lab focuses squarely on tangible implementation, ensuring participants gain real-world experience in bringing AI innovations to life.

You will build AI agents like these ones –WinSupport, WinJob, WinLearn, etc.  You will also master how to deploy the agents in your custom website like mywebsite.com.

What sets the Tekedia AI Lab apart is its commitment to a code-based, cost-effective approach. Unlike many programs that rely on no-code platforms with recurring fees, this program emphasizes direct coding, giving you complete ownership and control over your AI creations. You’ll learn to build AI agents from the ground up, leveraging the power of open-source foundation and large language models (LLMs). This strategic choice eliminates model-related costs, meaning your only significant expense will be your cloud hosting, freeing you from burdensome payments to third-party AI companies.

For curriculum and structure, visit program web page: Tekedia AI Lab

Program Date: Next edition begins Nov 15, 2025

The next edition begins on Nov 15 and will end on Dec 6, 2025.

The Live Zoom sessions are held on Saturdays at 3-6pm WAT.

Fees and Payment Options

Cost: $500 or N350,000 naira per participant.

Tekedia Institute will award a certificate: Advanced Diploma in Artificial Intelligence (AI) Design and Deployment

Tekedia Institute brings this program in partnership with our partner company, FASMICRO, Africa’s only Intel Corp programmable microprocessor knowledge partner

Solana Company Amasses $530 Million SOL Treasury Reserve, Matrica Reveals DM.fun as Jupiter Introduces Desktop Wallet

By
Paul Ugbede Godwin
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0

Nasdaq-listed Solana Company ticker: HSDT, formerly Helius Medical Technologies announced it has accumulated over 2.2 million SOL tokens, valued at approximately $515 million at current prices of around $234 per SOL, plus $15 million in cash reserves—for a total “war chest” nearing $530 million.

This positions the firm as one of the largest corporate holders of SOL and underscores a accelerating trend of public companies integrating Solana into their balance sheets as a strategic treasury asset.

2.2 million+ SOL acquired via ongoing purchases since a September private placement that raised funds for digital asset accumulation. The total exceeds the gross proceeds from that raise, signaling aggressive deployment of capital.

Backed by Pantera Capital with Cosmo Jiang as a board observer, the company is focusing on “maximizing shareholder value” through SOL staking and DeFi yields. This mirrors Bitcoin maximalist Michael Saylor’s approach at MicroStrategy but tailored to Solana’s high-throughput ecosystem.

The update follows a September 22 disclosure of an initial 760,190 SOL purchase worth $167 million, showing rapid scaling amid SOL’s price stability and network growth. This move isn’t isolated—it’s part of a broader corporate pivot toward Solana for its speed up to 65,000 TPS, low fees <$0.01 per transaction, and staking yields around 6-8% APY.

Public firms now hold ~3.44 million SOL collectively, worth over $1.2 billion as of August 2025, with adoption surging in Q4. Solana is emerging as the go-to alt-layer-1 for enterprise treasuries, outpacing Ethereum in scalability while offering Bitcoin-like “digital gold” appeal through yield generation.

These firms represent a shift from Bitcoin/Ethereum dominance, with Solana’s infrastructure enabling real-world use cases like dApps, payments, and tokenized assets. Institutional tailwinds include:Grayscale’s SOL Trust (GSOL): Staking enabled on October 6, potentially unlocking U.S. spot SOL ETFs 16 deadlines in October.

Asia-Pacific Interest: Growing inflows, with stablecoin supply on Solana hitting $13.7B. 7,600+ active developers; $283B ecosystem market cap; $26B trading volume up 4% weekly.

SOL rose 3.57% to ~$235 on the news, eyeing a 56% rebound to $300+ if it breaks $251 resistance. Analysts cite this as a “bullish confirmation” of institutional confidence. Concentrated holdings could amplify volatility, but staking mitigates downside by generating yields. Regulatory clarity remains key.

With Bitcoin ETFs mature, altcoin infrastructure like Solana is next—offering differentiation via utility and returns. A Solana degenerate Odogwupete noted, “Solana isn’t a narrative, it’s an economy.”  This “war chest” signals Solana’s maturation into mainstream infrastructure, potentially reshaping corporate crypto strategies.

By allocating significant capital to SOL, firms are diversifying away from traditional assets (e.g., cash, bonds) into high-yield crypto assets, leveraging Solana’s ~6-8% staking APY for passive income.

The strategy, akin to MicroStrategy’s Bitcoin playbook, aims to boost shareholder value through capital appreciation and DeFi yields. This could set a precedent for other public companies, especially those with exposure to tech or blockchain, to adopt SOL as a treasury asset.

Concentrated SOL holdings introduce volatility risks, but staking mitigates downside by generating consistent returns. However, firms face regulatory and market risks if SOL’s price corrects or if crypto regulations tighten.

The announcement drove SOL’s price up 3.57% to ~$235, with potential to hit $300+ if resistance at $251 is breached. Large corporate buys signal bullish sentiment, likely attracting more institutional and retail interest.

With ~3.44M SOL $1.2B+ held by public firms, corporate demand could reduce circulating supply, potentially stabilizing or boosting SOL’s price over time. However, coordinated sell-offs could trigger volatility.

Grayscale’s SOL Trust enabling staking and looming U.S. spot SOL ETF deadlines 16 in October could amplify institutional inflows, further legitimizing SOL as an asset class and driving price appreciation.

Solana’s high throughput 65,000 TPS, low fees <$0.01, and developer ecosystem 7,600+ active developers make it a preferred blockchain for corporate use cases like dApps, payments, and tokenized assets. Firms like VisionSys AI and DeFi Development Corp are leveraging Solana for operational efficiency and innovation.

Companies adopting SOL early gain a first-mover advantage in the blockchain economy, potentially attracting partnerships with DeFi platforms like Marinade Finance or institutional backers like Pantera Capital, Galaxy Digital, or Jump Crypto.

Solana Company’s “war chest” could inspire a wave of corporate SOL adoption, similar to Bitcoin’s corporate treasury trend in 2020-2021. This may shift capital allocation norms, especially for tech-forward firms.

Corporate backing validates Solana’s ecosystem, which boasts a $283B market cap, $13.7B stablecoin supply, and $26B trading volume. Increased adoption could accelerate dApp development, DeFi activity, and real-world use cases.

Strong APAC interest and institutional inflows suggest Solana’s appeal is global, potentially positioning it as a leading alt-layer-1 blockchain over Ethereum for enterprise applications.

Corporate SOL accumulation reflects confidence in crypto as a hedge against inflation and a bet on blockchain’s role in the future economy. It also highlights a shift from Bitcoin/Ethereum dominance to altcoins with superior utility.

Solana Company’s $530M SOL war chest and the broader corporate adoption trend signal Solana’s emergence as a cornerstone of the blockchain economy. This move could catalyze price appreciation, ecosystem growth, and institutional validation, but it also introduces risks tied to volatility and regulation.

Matrica Reveals DM.fun as Jupiter Introduces Desktop Wallet

Matrica Labs, a key player in Solana’s Web3 infrastructure for NFT verification, token-gating, and community management, has just launched DM.fun—a social platform designed as a Telegram alternative tailored for Solana ecosystems.

Announced around October 6, 2025, this protocol emphasizes instant, on-chain verified chats for holders of any Solana token, addressing common pain points like fake identities and low engagement in traditional messaging apps.

Users can join exclusive chat rooms by proving ownership of specific Solana tokens or NFTs in real-time, leveraging Solana’s speed for seamless access without bots or manual checks.

Direct buy/sell functionality within chats, integrated with Solana DEXs, making it easier for communities to discuss and execute trades on the fly.

Engagement Tools: Includes “raid” mechanics for coordinated community actions, whale role assignments for large holders, and chat boosts to amplify visibility and participation—ideal for meme coins, DeFi projects, and DAOs.

Built on Solana’s low-cost, high-throughput network for real-time interactions, with cross-chain support in Matrica’s existing toolkit for broader compatibility.

This launch builds on Matrica’s established base, which already serves over 1,000 communities with tools like Discord/Telegram gating and NFT voting. It’s a step toward on-chain social experiences, potentially boosting token liquidity and project growth in Solana’s vibrant meme and DeFi scenes.

Early buzz highlights its potential to reduce scams by enforcing verifiable ownership, though success will depend on adoption and robust security audits.

Jupiter Introduces Desktop Wallet: Expanding Solana DeFi Accessibility

Jupiter—the Solana-based DEX aggregator powering billions in TVL—unveiled Jupiter Wallet for Desktop, a Chrome extension and Chromium-compatible that brings its acclaimed mobile wallet experience to browsers.

Jupiter Exchange has been building a “DeFi superapp” ecosystem, including launchpads and token suites. The desktop wallet launch aligns with this, aiming to streamline on-chain activities for both casual and pro users. Prior to this, users relied on mobile or browser extensions like Phantom for desktop access.

This follows the success of Jupiter Mobile and aims to unify trading across devices, targeting both casual users and pros with lower fees and deeper integrations.

Ultra-Low Fees & Gasless Trading: Up to 10x cheaper than competitors (e.g., ~0.1% swap fees), with MEV protection and optimized routes for the best prices—no gas surprises.

Seamless Sync: QR-scan your mobile wallet in seconds; no seed phrase hassles. Also supports social logins for quick setup.

PnL Analysis: Built-in profit/loss tracking to monitor your trading performance without external tools.

Deep Jupiter Integration: Direct access to perps, lending, launchpads, and token management—all in one app, reducing reliance on third-party extensions.

Hardware Wallet Support: Compatible with Ledger, Trezor, and Keystone for secure, offline key management. This desktop version addresses a major gap in Solana wallets, offering browser-native speed without lag or clunky connections.

It’s positioned as “the most advanced Solana wallet,” enhancing DeFi UX for high-volume traders while keeping things simple for newcomers. With Jupiter’s $2.47B TVL and sticky user base, expect this to accelerate on-chain activity—especially as Solana’s ecosystem matures.

Downlaod Jupiter Wallet Extension via official Jupiter site.These announcements underscore Solana’s push into seamless, integrated tools—bridging social, trading, and wallet functionalities.

Implications of $1 Trillion Shifting from Emerging Market Bank Deposits to US Stablecoins by 2028

By
Paul Ugbede Godwin
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0

Analysts Geoffrey Kendrick and Madhur Jha project that up to $1 trillion could shift from emerging market (EM) bank deposits into US dollar-pegged stablecoins by the end of 2028.

This reflects growing demand for stablecoins as a hedge against local currency volatility, inflation, and limited access to traditional USD accounts. Approximately $173 billion two-thirds of the global stablecoin supply is already held in EM savings wallets.

Forecast by 2028: EM stablecoin savings could reach $1.22 trillion, driving over $1 trillion in outflows from EM banks. Global Stablecoin market is expected to hit $2 trillion by end-2028, with EMs accounting for the majority of growth.

Stablecoins like USDT and USDC offer: Low-friction USD exposure: Users can hold digital dollars via mobile wallets, bypassing local banks’ credit risks and restrictions.

24/7 accessibility: Ideal for remittances, payments, and savings in high-inflation environments. Even without yields prohibited for US-compliant issuers under the recently passed GENIUS Act, stability trumps returns for many users.

The report anticipates broader retail adoption, evolving from large institutional wallets to millions of small household holdings.Most Vulnerable EM CountriesStandard Chartered highlights nations with high inflation, weak reserves, and large remittance inflows as prime candidates for deposit flight.

Larger EMs like India, China, Brazil, and South Africa are also flagged for accelerating adoption, potentially disrupting traditional banking. Shrinking deposits could erode fee income from FX and payments, but opportunities exist in stablecoin custody and treasury services.

EM authorities may accelerate digital currency pilots to compete, as stablecoins enable cheaper cross-border transfers. This “trillion-dollar migration” could mark one of the decade’s largest shifts in global savings, from fiat banks to blockchain-based systems.

Banks may lose fee income from foreign exchange (FX) transactions, cross-border payments, and remittance services as stablecoins offer cheaper alternatives. Banks could pivot to offering stablecoin custody, wallet integration, or treasury services to remain competitive.

Reduced deposits may weaken bank balance sheets, especially in vulnerable EMs like Egypt, Pakistan, or Sri Lanka, potentially triggering financial instability. Increased demand for USD-pegged stablecoins could exacerbate pressure on local currencies, worsening inflation or devaluation in countries with weak reserves.

As savings shift to stablecoins, central banks may struggle to manage money supply and interest rates, complicating monetary policy. Stablecoins’ ease of transfer could accelerate capital outflows, especially in crisis-prone economies like Sri Lanka or Colombia.

EM regulators may fast-track central bank digital currencies (CBDCs) to compete with private stablecoins, offering state-backed digital alternatives. Countries may impose restrictions on stablecoin use to protect banking systems, though enforcement could be challenging due to decentralized platforms.

Governments may introduce taxes or KYC/AML requirements for stablecoin transactions to retain some control over capital flows. Stablecoins provide low-cost, 24/7 access to USD exposure, benefiting unbanked populations and those in high-inflation environments.

Stablecoins could dominate remittance markets in Bangladesh, Pakistan cutting costs compared to traditional services like Western Union. Retail adoption could grow from institutional wallets to millions of household users, fundamentally altering how savings are stored and transferred.

Widespread stablecoin adoption would further entrench the US dollar’s role in global finance, as most stablecoins are USD-pegged. A $2 trillion global stablecoin market with $1.22 trillion from EMs would accelerate blockchain infrastructure adoption, from wallets to DeFi platforms.

Countries reliant on USD stablecoins may face reduced financial sovereignty, while the US could gain indirect influence over EM economies. Stablecoin issuers like Tether, Circle face scrutiny over reserve backing and stability, with potential for runs if trust erodes.

The US GENIUS Act passed recently prohibits yield-bearing stablecoins, which could limit their appeal compared to interest-bearing bank deposits. Increased retail adoption raises risks of hacks, scams, or wallet vulnerabilities, particularly in less tech-savvy EM populations.

Stablecoins could streamline trade in EMs, reducing reliance on costly SWIFT-based systems. EM banks could partner with stablecoin providers to offer hybrid services, blending fiat and crypto ecosystems.

This shift could redefine global savings, with EMs leading a transition to blockchain-based systems. However, it also poses risks of financial disruption if not managed carefully.

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