Once seen as a niche instrument within the crypto markets, stablecoins are now drawing attention from fintechs, traditional banks, and regulators alike, having gained pivotal momentum in the global financial landscape. 

In a recent report from 2025, Citigroup described the momentum as the “Stablecoin Summer,” reflecting a broader shift in how these assets are perceived: less as tools for speculation, savings, or even gambling, and more as foundational infrastructure for digital money movement across borders, offering faster settlement, lower costs, uninterrupted, interoperable, and always-on transactions beyond the limits of banking hours or time zones.

These claims are backed by the numbers, as verified data from on-chain transactions recorded on a blockchain show that the total value of stablecoins in circulation worldwide has risen rapidly, reaching roughly USD 250 billion by mid-2025 and approaching USD 300 billion by year-end. Growth has more than doubled over the previous two years, according to a McKinsey analysis.

In absolute terms, stablecoins remain relatively small compared to the scale of the global payments system. Legacy infrastructure processes an estimated USD 5 trillion to USD 7 trillion in money transfers every day, according to data from SWIFT and the Bank for International Settlements. By contrast, stablecoins currently facilitate roughly USD 20 billion to USD 30 billion in daily on-chain transactions, spanning remittances, settlements, and treasury movements — well under 1% of global daily payment flows.

However, stablecoin supply in circulation has expanded enormously over the past four years.

Before going any further, it is important to differentiate stablecoins from earlier generations of cryptocurrencies, such as Bitcoin or Ether. 

Like all crypto, stablecoins are not issued by any government or country. They function on blockchain networks, where transactions and core operating rules are executed and validated by code, rather than by a central authority.

Yet they are designed to maintain a stable value by being pegged to an external reference, most often the U.S. dollar, but in some cases other fiat currencies, such as the euro, or even commodities like gold.

Unlike those early cryptocurrencies, whose prices fluctuate based on market dynamics and speculation, stablecoins are intentionally built for price stability and day-to-day use. This makes them more suitable for payments, settlements, remittances, and cross-border money movement.

Today, not only does the stablecoin market remain highly dollar-centric, but it is also concentrated between USDT and USDC. Together, the two account for roughly 85-90% of total stablecoin supply, and around 99% of all stablecoins in circulation are denominated in U.S. dollars, according to on-chain data from providers such as Artemis. 

Currently, stablecoins account for around 30% of the total crypto transaction volume worldwide. However, this share varies sharply across markets: in Brazil, stablecoins account for more than 90% of crypto transaction flows. This predominance is also seen in other Latin American markets such as Argentina (62% of stablecoin share) and Colombia (66%).

In Nigeria, by contrast, bitcoin dominates crypto purchases, representing roughly 89% of fiat-to-crypto transactions, and India shares a similar pattern, with bitcoin remaining the leading asset among investors, accounting for about 69% of adoption.

Stablecoins’ structure highlights their current role not as a speculative crypto asset, but rather as a regulated digital currency operating on global, always-on rails that increasingly complement traditional financial infrastructure.

While stablecoins are still being piloted as a direct payment option at merchant checkouts, they are already widely used by companies for instant settlements and payouts, particularly in B2B transactions.

This use is driven by the currency's speed and efficiency, as well as its potential for tax and FX optimization in cross-border transactions, given that regulations are still evolving in many countries. In this context, they serve as a flexible financial tool for companies seeking faster and cheaper ways to move money globally.

“Take a company like a social media titan, with operations in over 200 countries: managing cross-border payments between its subsidiaries can be complex and costly,” says Luiz Felipe Pinheiro, Head of Financial Products at EBANX. “Stablecoins offer a way to transfer funds in near real time, efficiently, and without the friction of traditional banking rails,” he adds.

This opportunity is set to expand as cross-border payment volumes are also projected to almost double in the near future.

“This is a game-changer for cash flow management and cross-border business. It’s transformational," states Eduardo de Abreu, Chief Product Officer at EBANX.

In emerging markets, the most established uses of stablecoins are concentrated around preserving value and moving money efficiently, especially in economies facing inflation, currency controls, or costly cross-border flows.

“In developed markets, stablecoin adoption is about efficiency, modernizing legacy systems, and lowering settlement costs. In emerging markets, it’s about access,” highlights Tiffani Montez, Principal Analyst leading the Banking vertical at EMARKETER. “Stablecoins are well-positioned to circumvent traditional banking rails, giving consumers a potential hedge against inflation and offering SMEs a faster path to cross-border payments.”

In countries like Argentina, dollar-pegged digital assets have become a practical hedge against local currency depreciation due to high inflation rates. Nearly 20% of Argentines are crypto users, according to a report by the Blockchain Argentina Foundation.

“People do not want to hold pesos. They move into dollars or crypto as a way to protect value,” explains Sebastian Fantini, Product Director at EBANX. In this context, stablecoins function more as a digital substitute for holding foreign currency.

Stablecoins are well-suited for adoption in emerging markets. Data from Triple A's Digital Currency Ownership reveals that several of these countries, including Brazil, Thailand, and Vietnam, are leaders in digital currency adoption, with over 15% of their populations owning a digital currency — a number that reaches 20% in Turkey.

Eduardo de Abreu, Chief Product Officer at EBANX, notes that emerging economies often face capital restrictions and high volatility, and digital money can serve as a tool to partially mitigate those risks.

Large, young, and digitally native populations also drive the adoption of stablecoin, given their familiarity with crypto and other real-life economic needs.

Nigeria is a clear example, with the Director-General of the Securities and Exchange Commission reporting over USD 50 B in crypto transactions in one year. “People already have basic understanding of how crypto works, especially stablecoins, for treasury as a hedge against Naira devaluation and also as a faster, cost efficient rail for cross border payments,” says David Nwosu, Nigeria Country Manager at EBANX.

While stablecoins are not yet fully regulated as a payment method in the country, their use for saving, receiving income, and informal transfers is already underway. David Nwosu adds that once regulation is clarified, “people will agree to pay for things with stablecoins because of the speed, global acceptance, and protection against currency instability.”

For millions of people in rising economies who are often unbanked or underbanked, stablecoins could provide access to digital payments where traditional banking or cross-border options are limited or prohibitively expensive.

In many markets, stablecoins are emerging as a future global alternative payment method (APM).

In Brazil, the leading cryptocurrency market in Latin America, the Central Bank has recently stated that payments, notably for cross-border purchases, primarily drive the surge in stablecoins. "Most of that is to buy things and to shop things from abroad," said Gabriel Galipolo, chief of the Brazilian Central Bank, during a Bank for International Settlements event in Mexico City.

Industries with a digital-native audience, such as gaming and streaming, and those with a significant share of cross-border volume, like travel and specific luxury segments, are more likely to see customer demand for stablecoin payments. 

Some examples of global companies that already offer cryptocurrency as a payment option include Farfetch, Gucci, and Balenciaga from the retail and luxury sector; Twitch and Bigo Live from the streaming industry; and the airlines Norwegian and Air Baltic. 

“Digital currency is quickly gaining traction, especially among the gamer population, consisting of mainly young and tech-savvy adults who tend to be early adopters of digital currency and hence should not be overlooked,” declared Stanley Liew, CEO of Cherry Credits. This APAC-based game publisher and micropayments provider has recently started offering digital currency as a payment option.

For now, stablecoins as a payment method can still seem like email in a fax-machine world, as noted in a recent article from Bloomberg. While most consumers still pay in fiat, however, this is rapidly changing as a wave of regulatory and industry initiatives takes place. 

Between 2023 and 2025, governments and regulators accelerated efforts to define frameworks for these assets. Leading jurisdictions include the EU, UAE, Japan, and Singapore. Additionally, the US, Hong Kong, the UK, Brazil, and South Korea have either finalized bespoke frameworks or are actively consulting on rules.

The EU’s MiCA Act, Brazil’s Law 14,478/22, and the recent US GENIUS Act provide examples of emerging standards. 

Industry players and merchants are moving in parallel, introducing real-world adoption. Stripe’s USD 1.1 billion acquisition of Bridge in October 2024 demonstrated the mainstream interest in stablecoin infrastructure. Separately, Visa is piloting the use of pre-funded USDC and EURC stablecoins for cross-border payments through Visa Direct.

Coinbase is targeting e-commerce platforms like Shopify and eBay with its Payments platform, aiming to make stablecoins a widely accepted online payment option. 

Other well-established products, such as PayPal’s PYUSD, and new launches further signal a shift from experimentation to serious industry adoption.

These combined regulatory and industry moves indicate a turning point for stablecoins. After years on the margins, 2025 has seen the technology achieve broader legitimacy and recognition, with governments providing clearer rules and major companies building practical applications. As legal frameworks continue to solidify and infrastructure expands, stablecoins are poised to move from niche savings and transfers into mainstream payments, cross-border transactions, and merchant use.

The rapid adoption of stablecoins also raises a series of important risks and unanswered questions. Regulators, businesses, and users must navigate a landscape marked by potential misuse, legal ambiguity, and macroeconomic considerations. 

These challenges are particularly relevant in emerging markets, where adoption is growing fast, but frameworks are still evolving.