Stablecoins As Stepping Stone To BTC Adoption In Emerging Markets
The Daily Crypto Update for Institutional Investors
Trading volume for USDt against the turkish lira (TRY) has outpaced BTC/TRY trading volume by nearly four to one on popular Turkish exchange BTCTurk over the past two years (See Chart of The Day) - We discuss USDt’s role in emerging markets & the implications for BTC
Over the past five years, the Turkish lira has lost ~84% of its value against the US dollar. Acute fiat currency debasement in countries like Turkey, which is the 16th largest global economy by GDP, have long been a bullish thesis for BTC and crypto adoption more broadly. This thesis has largely panned out thus far. According to Chainalysis’ 2025 Global Crypto Adoption Index, the US is the only developed nation among the top 10. The US placed second, with India ahead of it and Pakistan, Vietnam and Brazil placing third, fourth and fifth; Turkey placed 14th. In 2024, according to data from Chainalysys, ‘stablecoin trading volumes on [centralized exchanges were] equal to 4% of GDP in dollar equivalent terms’ in Turkey.
We have observed the pattern of USDt/TRY volumes outpacing those of BTC/TRY with other emerging market fiat currencies. For instance, in January we pointed out that ‘[o]ver the past year, USDt/BRL saw an aggregate volume of USDt 13.66B; this is compared to USDt 4.79B in trading volume by BTC/BRL.’ The reason for this dynamic is likely the following: locals are seeking the relative safety of the US dollar while BTC’s volatility makes the asset a difficult store of value in the near-term.
For crypto proponents, digital assets represent a logical solution for emerging markets. BTC advocates point to the asset as a hedge against currency debasement. The self-custodial nature and peer-to-peer transactability of digital assets allows users to avoid counterparty risks tied to local institutions and possible undue censorship. Via crypto, users in emerging markets are able to access an array of financial services that may be lacking in their local jurisdictions. These crypto native services include borrowing, earning interest, and increasingly, investing in tokenized real-world assets, such as gold.
Takeaway: Compared to emerging market fiat currencies, the US dollar offers relative safety. The cryptocurrency characteristics of stablecoins provide additional incentives for gaining US dollar exposure via blockchains in emerging markets. However, BTC proponents are quick to point out the US dollar itself has seen diminishing purchasing power. In this context, BTC advocates often pitch stablecoins as a stepping stone towards the asset’s adoption. Stablecoins allow users to become familiar with novel concepts such as digital wallets, private key management, and the irreversibility of crypto transactions. In this context, despite USDt trading volumes against emerging market currencies continuing to outpace BTC, stablecoin adoption continues to be a bull catalyst for the asset.
CRYPTO HEADLINES
US Senator Bernie Moreno indicated the CLARITY Actmay pass Congress by April 2025. Coinbase (NASDAQ: COIN) CEO Brian Armstrong claimed a solution addressing stablecoin rewards is emerging, potentially allowing renewed support for the bill. Polymarket’s predicted probability of passage surged to 90% before declining. - link - @CoinTelegraph
Streamex (NASDAQ: STEX) has announced that GLDY, a gold-backed, yield-bearing tokenized security, will launch on February 25, 2026. GLDY is described as offering 1:1 exposure to physical gold and aims to provide up to a 4% annualized yield paid monthly in extra gold, with yield generated via gold leasing. - link - @Streamex
Societe Generale’s digital asset arm SG-FORGE has deployed its euro stablecoin EUR CoinVertible on the XRP Ledger, following previous launches on Ethereum and Solana. The move increases institutional access to the token, which is described as MiCA-compliant and backed 1:1 by cash or securities. - link - @Cointelegraph
World Liberty Financial plans to tokenize loan revenue interests in the developing Trump International Hotel & Resort in the Maldives. According to World Liberty, investors should get both a fixed yield and loan revenue streams, while the token would be limited to accredited investors. - link - @Bloomberg
Ledn completed the first asset-backed securities deal backed by BTC collateral, raising USD 188M through bonds secured by 5,400 BTC-collateralized consumer loans. The weighted average interest rate on the loans is described as 11.8%. Jefferies acted as sole structuring agent and bookrunner. - link - @CoinDesk
Figure Technology Solutions (NASDAQ: FIGR) is issuing a tokenized stock, FGRD, directly on-chain with instant settlement. The offering aims to allow holders to lend or borrow using the asset through its DeFi venue. The issuance also coincides with Figure’s USD 150M secondary share sale and Pantera Capital’s participation. FGRD represents native equity, not a proxy. - link - @CoinDesk
Brevan Howard Capital Management reduced its BlackRock iShares Bitcoin Trust (NASDAQ: IBIT) spot ETF stake by about 86% in the fourth quarter of 2025, to USD 275M. The firm replaced most of its position with IBIT call options (USD 400M) and put options (USD 248M). - link - @Bloomberg
Kraken’s parent company Payward acquired token operations firm Magna, which manages token vesting and distribution. Magna’s platform will be integrated into Kraken’s institutional suite as the company prepares for a public market debut. - link - @CoinDesk
TOP ARTICLES
South China Morning Post: What is tokenised gold and why are financial institutions and investors looking at it?
Bloomberg: Trump Family Crypto Bash Convenes Wall Street’s New Believers
OPEN-SOURCE RESEARCH / LONG-READ OF THE DAY
This Is Fine, Arthur Hayes, February 18, 2026
Arthur Hayes discusses macro economic conditions.
CRYPTO MULTIMEDIA
The REAL Battle For Bitcoin & Stables Is Just Getting Started, The Wolf Of All Streets Podcast, February 8, 2026
Tether CEO Paolo Ardoino and Bo Hines, the CEO of Tether US, discuss stablecoin adoption.
CHART OF THE DAY
USDt/TRY trading volumes continue to heavily outweigh those of BTC/TRY, a pattern observed with other emerging market currencies in crypto trading.
About FRNT Financial
FRNT is a digital asset investment bank offering capital markets and advisory services to institutional investors participating in or entering the space. The Company aims to bridge the worlds of traditional and web-based finances with a technology forward and compliant operation. Business lines include deliverable trading services, structured derivative products, merchant banking, advisory, consulting, lending origination and principal investments. Headquartered in Toronto, FRNT was co-founded in 2018 by CEO Stéphane Ouellette.