Chainalysis CEO Gronager says the use of stablecoins in Asia is increasing despite strict regulations

Michael Gronager, co-founder and CEO of blockchain analytics firm Chainalysis, has stated that stablecoins are playing a pivotal role in the adoption of cryptocurrency across Asia.

Speaking at the Token2049 conference in Singapore, Gronager emphasised that even though regulators might not be fully supportive, the use of stablecoins is increasing, particularly in institutional settings.

Stablecoins, crypto tokens pegged to real-world assets such as the dollar or gold, serve as a bridge between traditional finance and the crypto space.

Because their value is stable, they are often used for transactions and as a store of value.

Gronager highlighted that stablecoins currently account for two-thirds of blockchain transaction volume.

Rising Interest in Stablecoins from Asian Banks

Asian banks are increasingly showing interest in launching their own stablecoins. Gronager noted that while a few Japanese banks had initially expressed interest last year, the number has grown to ten banks actively exploring the launch of U.S. dollar-backed stablecoins.

However, progress has been slow due to regulatory concerns. According to Gronager, banks in Asia must navigate a complex regulatory landscape before fully embracing this technology.

Despite these delays, stablecoins are posing a challenge to traditional banks, especially in the area of remittances, where stablecoins offer faster and more cost-effective solutions.

Related reading：Crypto's Future: Scalability, Stablecoins, and Mainstream Adoption – Key Insights from Ethereum, OKX, and Circle at TOKEN2049 Singapore

U.S. Influence and Global Adoption

While Asia is leading in terms of grassroots crypto adoption, with five Asian countries listed in Chainalysis' top 10 Global Adoption Index, the U.S. remains the most influential market due to its trading volumes and regulatory environment.

Gronager acknowledged that institutions such as the U.S. Congress and the Securities and Exchange Commission (SEC) have significant influence over the global crypto industry.

However, despite this influence, the U.S. ranks fourth in the global adoption rankings, with fewer individuals using cryptocurrency per capita compared to countries like India.

Gronager explained that the U.S. may lead in volume, but grassroots adoption in emerging markets is outpacing that of developed nations.

The Impact of U.S. Politics on Crypto

Looking ahead to the upcoming U.S. elections, Gronager downplayed the importance of political outcomes for the crypto sector, stating that the industry's growth will not be significantly impacted by who wins the presidency.

He predicted that whether it’s Donald Trump or Kamala Harris in office, the real benefit will come from moving beyond the election cycle and continuing to focus on the development of the industry.