Zodia Markets, Standard Chartered's crypto arm, processed $3.4 billion in Turkish lira stablecoin transactions in 2025, making it their second-most-used stablecoin behind the dollar. This volume surpassed euro and other G10 currency stablecoins, highlighting strong demand in markets with high inflation and currency volatility. The success of lira-pegged stablecoins suggests that regulated euro stablecoins might struggle to gain traction in stable economic environments. This indicates that the primary utility for stablecoins remains a hedge against local currency instability, rather than a general payment rail in developed economies. Watch for regulatory responses to this emergent use case.
The significant volume in Turkish lira stablecoins underscores stablecoins' primary utility as a hedge against local currency instability, not just a global payment rail. This dynamic suggests that regulated euro stablecoins may face adoption challenges in stable economic regions.
This story reveals a bifurcated stablecoin market where utility is driven by economic necessity in emerging markets. It implies that stablecoins will continue to thrive as a volatility hedge, but their role as a general payment rail in developed economies remains uncertain.
Zodia Markets, the crypto subsidiary majority-owned by Standard Chartered, processed $3.4 billion in transactions involving Turkish lira stablecoins in 2025, enough to make the lira its second-most-used stablecoin currency behind the dollar, ahead of the euro and every other G10 currency. Dollar-peg