Rob Hadick, a venture capitalist at Dragonfly, argues that stablecoins could see a tenfold increase in value as they become more central to everyday payments. In his view, the market's next growth spurt won't come from the traditional reserve-yield business, but from something broader.
Beyond the reserve-yield play
For years, stablecoins were largely seen as a tool for earning yield on crypto reserves. Issuers collected interest on the collateral backing tokens like USDC and USDT, and that was the dominant value proposition. Hadick says that narrative is shifting. The next phase of value creation, he contends, will hinge on how well stablecoins integrate into distribution networks, compliance systems, and payment rails.
That means companies that can navigate regulatory hurdles and build direct connections to merchants and consumers stand to gain the most. It's a far cry from the purely financial engineering that defined the sector's early days.
Why payments could drive a 10x jump
Hadick's argument rests on the idea that stablecoins have barely scratched the surface of real-world payments. Right now, most stablecoin transaction volume is concentrated on exchanges and in decentralized finance. But as adoption spreads to remittances, e-commerce, and even payroll, the total addressable market gets much larger.
The collapse of legacy financial infrastructure — think slow wire transfers, expensive cross-border fees, and outdated banking rails — leaves a gap stablecoins can fill. Hadick points to distribution and compliance as the key enablers. Without easy on-ramps and off-ramps, and without clear regulatory frameworks, mass adoption stalls. With them, the potential is enormous.
He didn't offer a specific timeline or dollar figure for the tenfold growth, but the direction is clear: stablecoins are no longer just a crypto-native instrument.
The shift Hadick describes has already begun. Payment processors, fintech apps, and even large retailers are experimenting with stablecoin settlements. For venture firms like Dragonfly, the bet is that the winners in this next phase will be the companies that solve distribution and compliance, not just the ones that issue tokens.
Whether that vision plays out depends on how quickly regulators clarify rules around stablecoin reserves and anti-money laundering requirements. Several jurisdictions, including the European Union and parts of Asia, have already moved to create licensing regimes. The U.S. is still playing catch-up.
For now, the stablecoin market remains a mix of old guard incumbents and new entrants. Hadick's prediction suggests the gap between them could widen fast — or get erased entirely if the payment use case takes off.
