DeFi

Planet

Polygon (Old)

Surge

<h4>Quick Breakdown&nbsp;</h4>
<ul>
 <li>Polygon predicts 100,000 stablecoins within five years, triggering a “super cycle” in digital assets.</li>
 <li>Banks face capital outflow, prompting the rise of deposit tokens to retain on-chain liquidity.</li>
 <li>Settlement layers and cross-chain infrastructure will streamline stablecoin use for consumers and institutions.</li>
</ul>
&nbsp;
As digital assets reshape global finance, Polygon’s Aishwary Gupta <a href="https://thefintechtimes.com/polygon-exec-predicts-super-cycle-of-100000-stablecoins-as-banks-fight-to-retain-capital/" rel="noopener noreferrer nofollow">warns</a> of a looming “super cycle” that could see over 100,000 stablecoins launched within five years, forcing traditional banks to rethink capital management.
<h3 id="span-stablecoins-as-instruments-of-sovereignty-span">Stablecoins as instruments of sovereignty</h3>
Gupta, Global Head of Payments &amp; RWA at Polygon, points to Japan’s use of stablecoins like JPYC for government bonds and economic stimulus as evidence that digital assets can enhance, rather than undermine, national monetary power. “It’s not about governments losing control,” Gupta said. 
<blockquote>
 “Stablecoins can actually extend a currency’s reach globally, providing broader access while retaining macroeconomic levers.”
</blockquote>
This perspective challenges common regulatory fears that stablecoins threaten central bank authority. Gupta explains that stablecoins remain sensitive to traditional monetary policy, such as interest rate adjustments, ensuring governments continue to influence their economies.
<blockquote class="twitter-tweet">
 Aishwary Gupta, Polygon’s Global Head of Payments and RWA, said stablecoins are entering a “super cycle,” with over 100,000 issuers expected in the next five years. He noted that traditional banks will need to restructure their capital management models to stay competitive,…
 — Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1994306100175466939?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 28, 2025</a>
</blockquote>

Banks face capital flight, explore digital solutions
The predicted explosion of stablecoins presents a direct threat to traditional banking. With on-chain assets offering competitive yields, deposits are increasingly moving out of banks, reducing their ability to generate credit and raising their cost of capital.
To counter this, Gupta envisions banks issuing “deposit tokens”, digital representations of customer deposits that retain funds within banks while enabling blockchain-based trading. For example, a JP Morgan deposit token (JPMD) could allow clients to trade digitally on exchanges like Coinbase without leaving the bank’s custody.
Gupta also forecasts that settlement layers will consolidate the fragmented stablecoin ecosystem, enabling seamless currency conversions across networks. In this future, the specific stablecoin becomes invisible to users, functioning like traditional payment infrastructure.
The rise of stablecoins and deposit tokens signals a transformative period for banking and digital finance, as institutions adapt to a rapidly evolving market where blockchain-native assets coexist with traditional financial systems.
This news came as Polygon Labs <a href="https://defi-planet.com/2025/09/polygon-labs-and-cypher-capital-partner-to-accelerate-institutional-adoption-of-pol-in-the-middle-east/" rel="noopener noreferrer nofollow">continued</a> its push into global markets, following its earlier partnership with Cypher Capital to advance institutional adoption of the POL token.
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The post <a href="https://defi-planet.com/2025/11/polygon-exec-predicts-surge-to-100000-stablecoins-banks-scramble-to-retain-capital/" rel="noopener noreferrer nofollow">Polygon Exec Predicts Surge to 100,000 Stablecoins, Banks Scramble to Retain Capital</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Polygon Exec Predicts Surge to 100,000 Stablecoins, Banks Scramble to Retain Capital

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