In a recent tweet, CryptoQuant CEO Ki Young Ju warned that “dark stablecoins” may be the next big trend in crypto as governments tighten their grip on digital assets.
According to Ju, Bitcoin was born out of the cypherpunk movement to be censorship-resistant and stateless, which makes it almost impossible for any government to control.
In contrast, stablecoins have always needed a central authority, usually a private company like Tether or Circle, to back their value with real-world assets like cash held in banks.
So far, most governments have largely ignored stablecoins unless there were concerns about money laundering. This hands-off approach made stablecoins a popular tool for many groups, including Chinese Bitcoin miners, who used them as a stable store of value or to move funds across borders without friction.
But things are starting to shift.
Ju believes that going forward, stablecoins that are issued or approved by governments could face heavy regulations, similar to traditional banks. That could include smart contract-based taxes, frozen wallets, or mandatory KYC paperwork, making it harder for users to transfer funds freely.
Essentially, the open financial system that stablecoins once offered may soon look a lot more like the current banking system.
In response to this growing censorship, dark stablecoins — private, unregulated alternatives — may soon emerge, according to Ju. These could come in two main forms:
- Algorithmic stablecoins that maintain a stable value without being controlled by any government or company.
- Stablecoins issued by countries with little to no financial censorship offer users more freedom.
One interesting possibility he mentioned is a decentralized stablecoin that mirrors the price of regulated ones like USDC, using decentralized data oracles like Chainlink. While he hasn’t seen a project doing this effectively yet, he suggests it could be a strong use case in the future.
Ju also floated the idea that Tether (USDT) — long considered the most widely used stablecoin — could potentially take on a “dark stablecoin” role. If Tether decides not to comply with future U.S. regulations, especially under a second Trump administration, it may be seen as a censorship-resistant alternative in an increasingly controlled internet economy.
While it’s unclear how many long-term crypto investors still have conviction in the market, Ju said assets related to dark stablecoins could offer unique investment potential, especially as digital finance becomes more regulated.
