Stablecoins and DeFi Drive Rise of Transparent Money2 Financial System

A new financial system, referred to as Money2, is emerging through the integration of stablecoins and decentralized finance (DeFi), aiming to replace traditional intermediaries with transparent, code-driven transactions. According to recent reports, the total supply of stablecoins reached $225 billion by February 2025, reflecting a 63% year-over-year increase [1]. This growth highlights the expanding utility of stablecoins as a reliable medium of exchange and underscores their central role in constructing a new global financial ecosystem.

At the heart of Money2 is the use of smart contracts operating on decentralized blockchains, which automate financial services such as loans, payments, and exchanges without the need for intermediaries. This shift eliminates reliance on traditional institutions and reduces risks associated with human error, corruption, and bureaucracy. The system is driven by code, which determines how value is moved, secured, and lent, marking a departure from centuries-old financial practices.

Stablecoins serve as a foundational element of Money2, providing a stable unit of account and facilitating seamless value transfer across borders. Meanwhile, DeFi platforms offer scalable alternatives to traditional financial services, enabling lending, trading, and payments without the need for banks or brokers. Together, these technologies form the backbone of a new financial infrastructure that operates without trust in third parties [1].

However, challenges remain in scaling DeFi for mainstream adoption. Users must take full responsibility for managing private keys and irreversible transactions, which can be complex and risky for the average person. Additionally, the current web infrastructure lacks user-friendly interfaces tailored for secure financial interactions. Expanding DeFi’s asset classes beyond stablecoins—such as tokenizing real-world assets like stocks, bonds, and real estate—will be critical to broadening its utility. This transition, however, faces technical, legal, and logistical hurdles.

Despite these obstacles, the ongoing development of Money2 signals a shift toward a more open, transparent, and globally accessible financial system. The tokenization of real-world assets on blockchain could further cement DeFi’s role as a comprehensive alternative to traditional finance, enabling a broader range of economic activities to be conducted trustlessly and programmatically.

Michael Egorov, founder of Curve Finance, emphasizes that Money2 is not a theoretical vision but an active transformation already underway. With stablecoin supply surpassing $225 billion and DeFi platforms operating at scale, the system is demonstrating its potential to redefine how value is stored, moved, and exchanged.

As the system evolves, continued innovation in infrastructure and user education will be vital to overcoming existing barriers. The future of Money2 will be shaped by its ability to adapt to real-world financial needs while maintaining the core principles of decentralization and transparency [1].

Source: [1] Stablecoins Could Play a Central Role in the Emerging Money2 Financial System Through DeFi (https://en.coinotag.com/stablecoins-could-play-a-central-role-in-the-emerging-money2-financial-system-through-defi/)