Traders Union research: 41% of investors use stablecoins to protect against inflation

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Investors use stablecoins

How investors use stablecoins

According to the research, “Stablecoins: Digital Dollars or the Future of Money?”, stablecoins are increasingly seen not only as a tool for cryptocurrency trading, but also as a digital equivalent of the dollar. 41% of respondents said they use stablecoins primarily to protect their savings from inflation. Another 34% use them mainly for crypto trading and portfolio management.

The research shows that the role of stablecoins has expanded significantly. Initially, they were used to move funds quickly between crypto exchanges without converting them into fiat currencies. Now, however, investors increasingly view them as a tool for preserving purchasing power, international transfers, online payments and DeFi activity.

The authors of the research separately note the growth of payment use. 66% of survey participants said they already use stablecoins for payments or international transfers. Of them, 29% do so frequently, while 37% do so from time to time.

Why investors trust stablecoins

According to Traders Union, trust in stablecoins is gradually approaching trust in traditional banks. 38% of respondents said they trust stablecoins more than banks when it comes to holding part of their savings. Another 33% said their trust depends on the issuer and reserve transparency.

At the same time, centralized exchanges remain the main place for storing such assets. 46% of users keep most of their stablecoins on centralized trading platforms. Another 24% use mobile non-custodial wallets, 18% use hardware wallets, and 8% store funds in DeFi protocols.

Investors see regulation as the main risk to wider stablecoin adoption. 36% of survey participants named future government action as their main concern. Loss of the peg to the underlying currency was cited by 29%, while issuer insolvency or insufficient reserve risks were mentioned by 25%.

Will stablecoins become a mainstream financial tool?

Most survey participants expect stablecoins to continue moving beyond the crypto market. 54% of respondents believe they will become a widely used financial tool within the next five years. Another 31% consider such a scenario possible.

Traders Union notes that these findings align with a broader institutional trend. Payment companies, banks, fintech platforms and major crypto market participants are increasingly viewing stablecoins as infrastructure for settlements, cross-border transfers, liquidity management and tokenized assets.

At the same time, the authors of the research emphasize that price stability does not eliminate all risks. For investors, reserve transparency, issuer reliability, redemption availability, custody security and the legal status of a specific stablecoin remain important.

As a reminder, a previous Traders Union research found that most traders trust social media.

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