Turkey is carving out a prominent niche in the global crypto arena, chiefly through its significant stablecoin activity, according to a detailed study from Boğaziçi University’s Center for Applied Research in Finance (CARF), authored by Assoc. Prof. Cenk C. Karahan and Prof. Vedat Akgiray. This extensive report sheds light on the nation’s leading position in stablecoin transactions relative to its GDP, a marker of Turkey’s expanding digital finance landscape.
Why Does Turkey Lead in Stablecoin Transactions?
In the year spanning April 2023 to March 2024, Turkey’s stablecoin transactions hit a remarkable 4.3% of its GDP, translating to nearly $38 billion. This led to projections for 2024 that suggest cross-border flows reached beyond $63 billion. With foreign entities primarily facilitating this movement, the study suggests this trend warrants attention from policymakers.
Is Turkey’s Crypto Adoption Unparalleled?
Yes, it is. At least 20% of the adult population in Turkey accessed cryptocurrencies between 2023 and 2024, earning the country a third spot globally in adoption rates. Stablecoins have been fundamental in driving this widespread acceptance, balancing investments with everyday financial dealings.
Recent data by Chainalysis and Morgan Stanley indicate that from July 2024 to June 2025, Turkey’s crypto transaction volumes soared to around $200 billion. This surge underscores Turkey as the preeminent crypto market in the Middle East and North Africa, significantly larger than the UAE’s market.
Turkey’s affinity for crypto is attributed partly to the devaluation of its currency, the lira. The currency’s depreciation from 1.10 TRY/USD in 2008 to over 44 per dollar by March 2026 has seen citizens pivot toward stablecoins as a reliable store of value.
• The turnover of stablecoins dropped from over $200 million daily by the end of 2024 to approximately $70 million by mid-2025, while altcoin trading climbed robustly.
• Turkish reliance on stablecoins is indirectly financing foreign governments, with approximately 65.7% of USDT reserves lodged in U.S. Treasury bonds.
Are Regulatory Advances Keeping Pace with Market Dynamics?
Turkey’s regulatory groundwork is evolving, with significant steps taken in 2024 toward overseeing crypto assets, but gaps persist, particularly concerning stablecoin regulation. This incomplete regulatory framework presents both risks and growth opportunities in the burgeoning Turkish crypto market.
A recommendation from Karahan and Akgiray’s research advocates for creating a domestic stablecoin backed by local reserves. Such an asset, aligned with the Central Bank’s digital initiatives, could curb capital outflows and potentially draw new investments toward Turkey.
“Ensuring reserve assets are audited independently each month, using them to build trust, and facilitating national capital retention are keys to economic sovereignty,” suggests the report.
Concerns remain about potential pitfalls, as past stablecoin instability could threaten the proposed national model. The study advises robust regulatory practices and international network access to safeguard this financial innovation.
Turkey’s reliance on stablecoins contributes to capital outflows, heightened by currency instability. Establishing a robust local stablecoin, integrated with strategic regulatory measures, could transform its role in the digital landscape, potentially making it a regional hub for digital finance.
