Cloudflare jumps into stablecoins with an eye on automated future
The world of digital finance just got a significant new player: Cloudflare. The well-known network services provider is causing a stir with its announcement that it will be launching its own stablecoin, called “NET Dollar.” The company’s CEO, Matthew Prince, shared this ambitious plan, which shows a big change for the company as it moves away from its usual internet infrastructure services.
According to the stablecoin project’s website, the NET Dollar isn’t just another digital currency. It’s “designed for a new era — an era of algorithms and machines.” The vision is clear: to facilitate “fully automated transactions without human involvement.” Cloudflare further clarified that this asset is intended to “operate across any networks and ecosystems, ensuring seamless global trade.” While they’ve kept the exact launch date under wraps, the company promises the coin will be introduced “soon.”
Bitcoin expert Stepan Gershuni seems to agree with Cloudflare’s modern approach. He said that a stablecoin from a network services provider is exactly what he thinks the internet’s future infrastructure should be. “In a few years, only agents will operate on the internet. They will also be the ones paying,” Gershuni explained. “For various MCPs and other APIs. Using regular money will be inconvenient, expensive, and out of date for them. Programmable money, though, is perfect.” This idea shows that more and more people think that digital, programmable money is the next step for the online world, which is becoming more and more automated.
A $4 trillion horizon by 2030?
Cloudflare’s move comes at a time when interest in stablecoins is surging, drawing in major players from both the cryptocurrency and traditional financial sectors. Fresh off Cloudflare’s announcement, analysts at Citigroup actually raised their forecast for the stablecoin market’s total volume by 2030.
“Because the market has grown a lot over the past six months and there are a lot of new projects in the US and around the world, we have changed what we thought we would be able to issue stablecoins,” said Citigroup experts. They now predict a base case scenario of up to $1.9 trillion (an increase from their previous $1.6 trillion) and an optimistic scenario reaching a staggering $4 trillion (up from $3.7 trillion). These new numbers show how quickly stablecoins are being adopted and how much potential they have.
However, not everyone views this growth without caution. Back in August, Citi experts had already voiced concerns that stablecoins could pose a significant threat to traditional banks. Their worry is that if stablecoins begin offering interest, it could trigger a massive outflow of deposits from the banking system, impacting traditional financial stability.
Currently, the stablecoin market’s capitalization comfortably exceeds $295.6 billion, demonstrating its already substantial footprint.
Beyond speculation: stablecoins as a financial utility
Echoing the sentiment of stablecoins as essential financial tools, Stripe CEO Patrick Collison recently highlighted their growing popularity. He attributed this rise to their superior speed, lower costs, and enhanced reliability when compared to conventional financial (TradFi) systems. Collison emphasized that a vast number of companies aren’t using these assets for speculative gains but are, in fact, engaging in “genuine financial activities.”
This is becoming more and more common. In May, reports emerged that major US banks were talking about working together to create a stablecoin. Skip to September, and nine well-known European banks joined forces to create a euro-backed stablecoin, which is another step in the region’s push for digital currencies. In August, MetaMask, a Web3 wallet, introduced its own US dollar-pegged asset, mUSD. Its supply increased from $15 million to $65 million in just a week, which is a huge increase. At the same time, Tether, the company behind the popular USDT, also launched a new stablecoin especially for the US market.
Even national institutions are exploring this space. It’s worth remembering that on September 23, the National Bank of Kazakhstan announced a pilot project for a tenge-pegged stablecoin, with major players like Solana and Mastercard participating in the initiative. These diverse efforts underscore a global shift towards integrating stablecoins into the financial mainstream, driven by both technological innovation and a burgeoning need for more efficient, automated transactions.
