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MUFG Analyst: Stablecoins Perform Monetary Functions More Effectively Than Bitcoin, 2026/02/18 10:40:31
A market analyst from the leading Japanese bank Mitsubishi UFJ Financial Group (MUFG), Lee Hardman, has described stablecoins as a more practical form of currency compared to volatile cryptocurrencies like Bitcoin.
Hardman clarified that, unlike cryptocurrencies, the value of stablecoins remains consistent as they are pegged at a 1:1 ratio to major currencies (such as the US dollar, euro, or British pound), and sometimes to commodities and precious metals. The rise of stablecoins is attributed to their near equivalence to digital cash, facilitating instant and round-the-clock international payments with lower fees compared to traditional bank transfers.
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The analyst pointed out that the USDT token, issued by Tether, continues to be the largest and most widely used stablecoin globally. It is pegged to the dollar and backed by cash and US Treasury bonds. USDT dominates the liquidity market in Asia and Latin America, where residents actively utilize this stablecoin for international money transfers. According to Hardman’s estimates, USDT accounts for over 70% of trading volumes in stablecoins.
Earlier this year, the total market capitalization of stablecoins surpassed $310 billion, with nearly 99% of this amount attributed to tokens pegged to the US dollar. The market capitalization of USDT alone is approximately $184 billion, while USDC stands at around $74 billion. Currently, stablecoins represent about 13% of the cryptocurrency market, and Hardman anticipates that this share will significantly increase over the next decade.
In his view, stablecoins outperform Bitcoin in fulfilling three essential functions of money: a medium of exchange, a unit of account, and a store of value. Due to their price stability, sellers are more inclined to use them for purchasing goods and services, as the risk of value fluctuation during transactions is reduced.
Previously, MUFG initiated discussions with major companies regarding the launch of stablecoins on its blockchain platform, Progmat. The bank has assured that these stablecoins will be usable not only in Japan but also internationally.
