According to CryptoQuant CEO Ki Young Ju, the emergence of dark stablecoins—alternatives operating outside government oversight—is expected to be driven by forthcoming regulations, as they are likely to be utilized for significant cross-border transfers and other activities that could attract regulatory attention.
CryptoQuant CEO Forecasts Surge of ‘Dark Stablecoins’ Amid Regulatory Pressure
The growing importance of stablecoins and ongoing regulatory efforts could create a new market. CryptoQuant CEO Ki Young Ju predicted the emergence of “dark stablecoins,” a form of dollar-pegged currency believed to resist censorship.
Young Ju stated that stablecoins may lose their appeal as a preferred alternative to the U.S. dollar once they fall under regulatory control. He noted that companies like Circle and Tether store their reserve assets with banks and financial institutions, and the government intervenes only in cases of criminal activity.
However, the landscape may shift as governments begin adopting on-chain oversight mechanisms, enforcing taxes through smart contracts and freezing assets under official directives. In response, developers may introduce dark stablecoins to serve alternative use cases.
Young Ju explained that developers could pursue two distinct approaches to create dark stablecoins: one uses algorithms to maintain a peg to the U.S. dollar—though many, like TerraUSD, have previously collapsed—while the other depends on stablecoins issued by countries that do not censor financial transactions.
Tether could potentially play a key role in the next phase of stablecoin development if it chooses not to align with U.S. government regulations. Young Ju emphasized that a future Trump administration could classify Tether as a dark stablecoin in an increasingly restricted internet economy.
Given the stablecoin company’s extended history of cooperation with government authorities, this scenario appears improbable. Young Ju concluded by suggesting that assets linked to dark stablecoins might hold investment potential within the digital capital markets.
