Turkish lira stablecoins gain traction, rank second at Standard Chartered crypto unit

Stablecoins linked to the Turkish lira saw significant usage among clients of Standard Chartered's crypto subsidiary, Zodia Markets, ranking second only to dollar-pegged tokens. However, the overall volumes remain modest when contrasted with the dominance of U.S. dollar-backed cryptocurrencies.

Nick Philpott, co-founder and interim CEO of Zodia Markets, noted that the Turkish lira was the second-largest currency for stablecoin usage among their clients, surpassing expectations that a major G10 currency like the euro might hold that position. This highlights a potential gap in demand for euro-pegged stablecoins, even as European banks plan their launch.

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Our second-largest currency in terms of stablecoins last year was not the euro or any G10 currency as one perhaps would’ve expected but rather the Turkish lira.

Philpott explained that clients utilized lira-pegged stablecoins as a more efficient alternative to traditional correspondent banking for transferring funds. He stated, "The TRY stablecoins were simply faster to settle, far more reliable to settle, cheaper to settle, and we would liquidate them more or less immediately on receipt, or certainly each day."

In 2025, Zodia Markets processed $110.5 billion in transactions involving dollar-pegged stablecoins, while lira-pegged stablecoins accounted for $3.4 billion. Euro-pegged stablecoins saw only tens of millions in transactions. The broader stablecoin market is largely controlled by Tether and Circle, with their dollar-pegged tokens in circulation valued at $188 billion and $76 billion, respectively. Despite the growth in stablecoin usage, a Bank of England policymaker recently suggested that demand for these assets might eventually decline.

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The TRY stablecoins were simply faster to settle, far more reliable to settle, cheaper to settle, and we would liquidate them more or less immediately on receipt, or certainly each day.