The stablecoin market has experienced explosive growth, expanding from $4 billion in 2020 to $272 billion by October 2025, according to a report by Sweden's central bank. This surge is largely attributed to dollar-pegged stablecoins, which have become a significant component of the digital currency landscape. While stablecoins offer efficiency gains in transactions and financial operations, the report highlights emerging risks associated with their rapid adoption. These include potential impacts on financial stability and regulatory challenges as the market continues to evolve.