Welcome to a new monthly Crypto Payments Market Update! We’ll discuss the latest happenings and explore the key trends shaping the crypto landscape in October 2024. As always, there’s a round of Spooctober crypto memes to round things off at the end. Let’s get into the highlights!
Key Points
- Total market cap shows positive movement at +10.4% this month, driven by increased institutional participation and steady adoption across mainstream finance.
- The global stablecoin market continued its growth streak. USDT supply now exceeds $120 billion, while EURC saw a 47.9% increase in capitalization.
- Southeast Asia and Latin America saw significant strides in cross-border crypto payments, with Thailand’s Siam Commercial Bank and Bolivia’s Bisa Bank launching stablecoin-based remittance services.
- 76% of Asian private investors now own cryptocurrencies, with 18% planning to invest, underscoring rapid adoption in the region.
- Metallicus joins the FedNow Service, enabling near-instant settlements for institutions in the U.S., while Alchemy Pay expands its fiat-to-crypto virtual cards with Samsung Pay.
- Regulatory updates emerged across Europe and the U.S., with the EU’s MiCA pushing for cybersecurity audits and Pennsylvania’s “Bitcoin Rights Bill” setting new state-level crypto guidelines.
Crypto Market In October 2024
October proved to be a significant month for Bitcoin and the broader crypto market. The total crypto market cap climbed by 10.4%, while mainstream markets continue to onboard digital assets. PwC’s latest report shows that 43% of traditional hedge funds, regardless of their current investment status in digital assets, are getting higher demand from institutional clients.
In addition to Bitcoin’s rise, stablecoins continue their steady climb. October 6 marked the tenth anniversary of USDT, with the token’s supply having now surpassed $120 billion. Circle, Tether’s main competitor, saw a 47.9% rise in EURC capitalization – an all-time high for this stablecoin at $95,7 billion. The current trend for stablecoins is on track for a fourteenth consecutive increase, according to CCData.
Many other digital assets are seeing moderate increases. Let’s take a look at the top 10:
Increased institutional participation, year-end portfolio adjustments, and heightened market activity during the so-called ‘Santa Rally’ are all contributing to the growth. As we progress through Q4 2024, the dynamics remain positive, though the market is moving quickly, and the political climate of a US presidential election makes it less predictable.
Crypto News Rundown
This October, crypto has been getting more treats than tricks. We’re observing significant strides in stablecoin adoption, cross-border payments, and all-around innovation. Let’s see what’s brewing in the industry this Halloween season!
Growth of Stablecoins for Cross-Border Payments
In Southeast Asia, Thailand’s Siam Commercial Bank launched a stablecoin-based cross-border payment service for retail customers. With this move, one of the country’s largest commercial banks aims to remove the need for pre-funding third parties.
Supporting this trend in Latin America, Bisa Bank of Bolivia introduced a new USDT service suite, allowing its customers to use USDT for remittances and international payments. At the same time, Mercado Bitcoin has teamed up with Ripple to enable cross-border payments in Brazil, allowing users to pay directly in Reals with fast Blockchain transactions.
Last but not least, Circle has partnered with MHC Digital to expand access to USDC across Australian and Asia Pacific institutions. Putting it all together, we can see an emerging global trend: stablecoin payments are becoming the new standard across industries.
New Opportunities in Crypto Payments
Metallicus became one of the latest companies to support live transactions on the FedNow Service, the Federal Reserve’s instant payment rail. This integration is a milestone for crypto payment providers working within the traditional financial system, enabling near-instant crypto settlements for U.S. institutions.
Other forms of crypto payments aren’t lagging behind. Singapore-based Alchemy Pay expanded its fiat-to-crypto virtual cards with the addition of Samsung Pay, following a crypto credit card trend that we’ve discussed in the past. In a similar move, Mesh partnered with Shift4 to empower over 200,000 merchants with a “Pay with Crypto” feature.
Blockchain Initiatives in Emerging Economies
The BRICS summit, comprising Brazil, Russia, India, China, and South Africa, included discussions on integrating Bitcoin as an international payment method, indicating an ongoing shift away from the current global economic model. According to Bloomberg, Russia seeks to bypass sanctions and circumvent US-dollar dominance with a shift toward token settlements.
In less contentious news, the AED stablecoin has secured approval from the UAE central bank. AE Coin will be the first stablecoin backed by the UAE Dirham, which is in turn pegged to the USD. Similarly, Brazil has incorporated decentralized finance (DeFi) principles into its development of Drex, a new “synthetic” central bank digital currency (CBDC) that was originally meant to be the digital Real. Across the globe, emerging economies are embracing crypto tokenization to fuel growth.
Asian Crypto Ownership Boom
A recent Aspen Digital report revealed that 76% of Asian private investors now own cryptocurrencies, with an additional 18% planning to invest. Regulatory shifts in countries like Thailand complement this high level of interest. The Thai SEC has proposed new rules allowing mutual and private funds to invest in digital assets, which could soon permit securities firms and asset managers to offer crypto products like ETFs to large investors.
In Taiwan, the Financial Supervisory Commission plans to pilot virtual asset custody services through local banks. The first trials are expected in the first quarter of next year. Meanwhile, in a different part of Asia, the new Japanese Prime Minister, Shigeru Ishiba, has embraced blockchain and NFT technology as tools for regional economic growth. His strategy emphasizes bridging the “digital divide” by enhancing internet infrastructure and digital education in rural areas.
Asian markets are swiftly becoming the central place to watch for adoption, with the rate of crypto use fast approaching the mainstream.
The Regulatory Landscape in October
In the E.U., regulators continue to tighten their approach to crypto oversight. Under the Markets in Crypto-Assets Regulation (MiCA), the European Securities and Markets Authority (ESMA) proposed that crypto companies undergo independent cybersecurity audits before operating within the Eurozone. While the European Commission raised concerns about privacy and regulatory burdens, ESMA adjusted its standards but stood firm on the necessity of such audits. The proposals are now awaiting final approvals from the Commission, Parliament, and Council.
Other countries in the region are also making moves to enhance regulatory oversight. The Dutch government sought public input on a proposal requiring crypto service providers to collect and share user data with tax authorities. Meanwhile, Denmark’s Tax Minister announced a potential tax on unrealized capital gains for crypto assets, set to take effect on January 1, 2026. While still up in the air, such a tax would create an entirely new precedent for the industry.
In the US, state-level regulations have gained momentum amid election uncertainty at the federal level. Most notably, Pennsylvania passed the “Bitcoin Rights Bill,” which affirms the right to self-custody digital assets, allows Bitcoin as a payment method, and clarifies tax guidelines for BTC transactions. The bill had bipartisan support, which is a cause for optimism in regulatory trends.
On the campaign trail, Vice President Kamala Harris outlined her plans to establish a regulatory framework that safeguards participants in the digital asset market, promoting financial inclusion for minorities. Meanwhile, Trump’s crypto project, World Liberty Financial, plans to launch a USD-backed stablecoin. Both candidates are actively catering to different demographics in the crypto market, which will likely add to the bullish enthusiasm we’ve seen this October.
What’s Next for Crypto?
The general crypto market heads into Q4 with optimism, supported by increasing institutional interest and solid performance. Historically, the fourth quarter has been a period of notable performance for the cryptocurrency market. Nasdaq’s data indicates that Bitcoin has averaged a 23.3% return in Q4, reflecting a strong seasonal trend toward positive outcomes.
We’re kicking off with an 11.2% growth, in line with historical performance:
In the realm of crypto payments, stablecoins are steadily gaining ground as a go-to for cross-border transactions. With the growing need for on-chain liquidity, they seem to naturally slot into this niche across industries. Regions like Asia and Latin America are leading the way, where reports show increasing private interest and governments actively integrating crypto into their economic frameworks.
Of course, the private sector isn’t lagging behind. As more platforms offer seamless crypto payments, and emerging markets push forward with blockchain initiatives, crypto’s presence in the daily lives of customers continues to rise month-by-month.
And yet, we’re still in the early days. How about making your entry into the world of crypto payments this season?
The Mandatory Meme Section
Welcome to the Spooctober crypto season. We’ve all been to places like this:
What’s a Halloween without costumes? Luckily, this one doesn’t require much effort:
To go back to more good-natured memes, they don’t call it ‘Uptober’ for nothing. Here’s to many more successful months for the payments industry!
