Zodia, a Standard Chartered Subsidiary, Reports Turkish Lira-Pegged Stablecoin as Second Most Used After Dollar-Pegged Variant

Data released on Tuesday by Zodia Markets, the cryptocurrency subsidiary of Standard Chartered, revealed that the Turkish lira-pegged stablecoin was the second most utilized stablecoin type in its client transactions last year, although the transaction volume remained significantly lower than that of dollar-pegged stablecoins.

Stablecoins are cryptocurrency tokens pegged to fiat currencies, with their trading volumes surging in recent years. However, they are predominantly used for cryptocurrency trading and have not yet gained widespread adoption as everyday payment tools.

Zodia Markets, majority-owned by Standard Chartered, saw its co-founder and interim CEO, Nick Philpott, state during the announcement, "Many would assume the euro or another G10 currency would be our second-largest denomination stablecoin, but last year the actual runner-up was the Turkish lira."

This data indirectly reflects the weak market demand for euro-pegged stablecoins. Despite plans by several European banks to launch a euro stablecoin this year, the European Central Bank has consistently maintained a cautious and skeptical stance towards them.

Geoff Kendrick, a cryptocurrency analyst at Standard Chartered, pointed out that countries with underdeveloped local financial infrastructure and large populations lacking access to traditional banking systems are more likely to foster future demand for stablecoins.

Philpott explained that clients use the lira stablecoin to circumvent the correspondent banking process for cross-border transfers, effectively using it as an alternative to traditional lira wire transfers into Zodia bank accounts.

"Lira stablecoins offer faster settlement, greater stability, and lower fees. We can typically complete the conversion into cash on the same day we receive the tokens," he noted.

In 2025, transaction volumes processed by Zodia were $110.5 billion for dollar-pegged stablecoins, $3.4 billion for lira-pegged stablecoins, and only tens of millions of dollars for euro-pegged stablecoins.

The global stablecoin market is dominated by Tether, registered in El Salvador, and the US-based firm Circle. The two institutions have disclosed circulating supplies of dollar-pegged stablecoins at $188 billion and $76 billion, respectively.

A policy committee member at the Bank of England stated last Sunday that future market demand for stablecoins may gradually diminish.