Turkish Lira Stablecoins Outpace Euro Among Zodia Markets Clients

Turkish lira-pegged stablecoins emerged as the second-most utilized asset class for Zodia Markets last year, trailing only dollar-denominated tokens. The Standard Chartered crypto subsidiary reported $3.4 billion in lira-pegged transactions, significantly eclipsing the modest tens of millions handled in euro-pegged assets.

The data underscores a shifting landscape for digital assets where demand gravitates toward regions with restricted financial infrastructure rather than major G10 economies. Nick Philpott, co-founder and interim CEO of Zodia Markets, noted that clients utilized lira stablecoins primarily as an efficient alternative to traditional correspondent banking. These tokens offered faster settlement times and lower costs, allowing the firm to liquidate positions on a daily basis.

While dollar-pegged giants like Tether and Circle continue to dominate the global market with billions in circulation, the lack of traction for euro-pegged stablecoins remains striking. This discrepancy persists despite European banking initiatives to launch new euro-pegged instruments this year. According to crypto analyst Geoff Kendrick, the utility of such tokens is highest where local financial systems face friction, providing a practical workaround for liquidity and cross-border transfers that legacy systems currently struggle to accommodate.