The depreciation of the US dollar raises concerns! The crypto market calls for diversification of stablecoins: non-US dollar options become a new trend in Decentralized Finance.

With the rapid expansion of the crypto assets market, stablecoins have always been the core foundation of the Decentralized Finance ecosystem. However, the stablecoins currently available in the market are almost all pegged to the US dollar. With the recent sharp decline of the US dollar index (DXY), investors have missed the opportunity to participate in forex market fluctuations. Crypto researcher Ignas calls for the development of more non-USD stablecoins.

Crypto needs more non-USD stablecoins:

As DXY is down by 9.5% in just 3 months, even those sitting in USDC/T are losing out on forex opportunities.

For example, in just one week the Swiss franc is up 8%, but there is no liquid CHF stablecoin available.

I believe this onchain…

— Ignas | Decentralized Finance (@DefiIgnas) April 11, 2025

The dominance of the US dollar is shaken, and US dollar stablecoins dominate, becoming a risk in the crypto market.

Ignas pointed out that the US dollar index has fallen by 9.5% over the past three months, while during the same period, the Swiss franc (CHF) has risen by 8% against the US dollar. This means that even if investors hold stablecoins like (USDT or USDC, they cannot profit from this wave of fluctuation in the forex market.

Currently, there is still a lack of sufficiently liquid non-USD stablecoins in the market, such as the Swiss Franc stablecoin, which means that the potential of Onchain Forex ) has not yet been truly unleashed.

He further added that while the euro (EUR) stablecoins exist and are growing steadily, other major currencies such as the Swiss franc, the Japanese yen (JPY), and the pound sterling Stablecoins such as (GBP), KRW (KRW), etc. are still very rare. The limited nature of this currency class makes it impossible for investors to flexibly respond to the fluctuations of the global currency market in the DeFi ecosystem.

The Potential of Non-USD Stablecoins: Injecting Diversity into DeFi

Ignas stated that non-USD stablecoins can not only enhance the flexibility of Decentralized Finance but also create additional sources of revenue:

This type of stablecoin can avoid the tax and banking obstacles brought by converting funds into fiat currency, allowing assets to remain on the blockchain continuously, while also helping to enhance the protocol's transaction fee revenue and total locked value (TVL).

Standard Chartered Bank's previous report also pointed out that non-US dollar stablecoins can diversify reserve risks and provide enterprises with more DeFi application scenarios:

If not for the further development of the US dollar stablecoin, it may become an alternative in forex trading, breaking the absolute dominance of the US dollar in the stablecoin market.

The Real Challenges Faced by Non-USD Stablecoins: Issues of Liquidity and Application Scope

Although there are many related projects around the world, Ignas admits that non-USD stablecoins still face significant challenges:

Currently, the scale of non-USD stablecoins on the market is too small to handle large transactions or serve as collateral in DeFi protocols; the lack of sufficient liquidity also makes it difficult for these tokens to be widely applied.

In addition, the strict regulatory environment is also one of the obstacles to development. For example, the Swiss franc stablecoin project CryptoFranc (XCHF) unexpectedly ceased operations in 2024, and its issuer Bitcoin Suisse AG did not provide specific reasons, highlighting the uncertainty surrounding such products in both regulatory and operational aspects.

The Swiss Franc stablecoin project CryptoFranc (XCHF) is closing. Announcement: Market Exploration: The Current Status and Potential Regions of Non-USD Stablecoins.

Currently, the most mature non-US dollar stablecoin is the Euro stablecoin EURC. Although it has shown preliminary results, the market still heavily relies on the US dollar and euro, and there remains a significant gap in the demand for stablecoins based on other currencies.

According to reports, the EURC, ranked 25th in market capitalization among stablecoins, has shown impressive performance, generating $57 million in inflows over the past month, with inflow growth ranging from 28% to 58% on Ethereum, Base, and Solana.

In terms of geographical layout, Europe and Israel are gradually seeing the emergence of some new stablecoin projects, but they have yet to penetrate the mainstream market. Japan, having established a stablecoin legal framework earlier, is seen as a potential country with hopes of making breakthroughs in this field.

( Japan legalizes stablecoin! Circle partners with SBI to launch USDC )

Multistablecoins are a key component for DeFi to mature.

The rise of non-USD stablecoins will not only allow investors to harness the potential of the forex market but also promote the decentralization and stability of the DeFi ecosystem.

However, to realize this vision, multiple challenges such as liquidity, regulation, and market acceptance still need to be overcome. As regulatory policies become clearer and new projects emerge, the future of non-USD stablecoins may gradually become clearer, becoming a new engine for on-chain finance.

This article worries about the depreciation of the dollar! Crypto Market Calls for Stablecoin Diversification: Non-USD Options Become a New DeFi Outlet First appeared in Chain News ABMedia.