Onchain Stablecoins: The Undervalued Engines Powering the Future of Global Payments

The global payments infrastructure is undergoing a seismic shift. Stablecoins-crypto assets pegged to fiat currencies-are no longer just speculative tokens; they're the rails of a new financial system. By 2025, onchain stablecoins have driven over a third of DeFi revenue, facilitated $35 trillion in annual settlements, and outpaced traditional payment giants like Visa in transaction volume, according to a Stablecoin Insider review. Yet, despite their foundational role, many of the projects building on this infrastructure remain undervalued. For investors, this represents a rare opportunity to back the next generation of financial infrastructure before the mainstream rush.

The Stablecoin Revolution: From Speculation to Infrastructure

Stablecoins are the unsung heroes of DeFi. Unlike volatile cryptocurrencies, they offer the stability of fiat with the programmability of blockchain. Tether (USDT) and USD Coin (USDC) dominate the market, but the real innovation lies in niche players like Ethena's USDe and decentralized protocols like Dai (DAI). These projects are solving critical pain points: cross-border friction, compliance complexity, and liquidity constraints.

For example, USDe, a synthetic stablecoin backed by delta-neutral hedging strategies, has grown to $12 billion in supply by mid-2025, according to a Changelly analysis. Its ability to generate yield from funding rates and staking rewards makes it a cash-flow-positive stablecoin-a rarity in the space. Meanwhile, DAI remains a censorship-resistant alternative, particularly in regions with unstable banking systems, according to a Cryptopolitan report.

Undervalued Projects: The Hidden Gems of 2025

While giants like USDC and USDT dominate headlines, smaller projects are quietly building the infrastructure of tomorrow.

1. Ondo Finance: This project is bridging institutional and crypto-native markets by tokenizing U.S. Treasuries. Its OUSG and USDY tokens have attracted $690 million in TVL, and its partnership with BlackRock's BUIDL fund has unlocked institutional liquidity, according to a Changelly analysis. Despite its strong fundamentals, Ondo's token (ONDO) trades at a discount to its intrinsic value, given its role in real-world asset (RWA) tokenization.

2. Ethena: With USDe's explosive growth, Ethena has positioned itself as a yield-generating stablecoin. Its synthetic model eliminates the need for traditional banking intermediaries, making it a scalable solution for global payments. Yet, its market cap remains a fraction of its potential, given its $12 billion supply and recurring revenue streams, a point highlighted by Changelly.

3. Noah: This startup is building regulated infrastructure for stablecoin on/off-ramps and cross-border payments. By partnering with Gnosis, Noah has enabled real-time settlements across 70+ countries, as noted by the Stablecoin Insider review. Its API-driven approach targets enterprises and DeFi platforms, yet it remains under the radar compared to larger fintech players.

4. Liquity: A decentralized stablecoin protocol with no governance or inflation mechanisms. Liquity's trustless design and robust security model make it a compelling alternative to overcollateralized systems like MakerDAO. Despite its technical superiority, its TVL of $1.2 billion pales in comparison to its potential, according to a Keyrock analysis.

Regulatory Tailwinds and Market Momentum

The U.S. regulatory landscape is shifting in favor of stablecoins. The passage of the GENIUS Act in 2025 has streamlined compliance for stablecoin issuers, reducing legal uncertainty, according to a Changelly analysis. Meanwhile, funding for stablecoin startups has surged from $84 million in 2024 to $537 million by mid-2025, according to a Cryptopolitan report. This influx of capital is accelerating innovation in cross-border payments, B2B transactions, and RWA tokenization.

The Investment Thesis: Why Now?

The case for investing in onchain stablecoins is twofold. First, they're solving real-world problems: remittances cost 6% globally, but stablecoin-based solutions reduce this to less than 1%, according to the Stablecoin Insider review. Second, they're capitalizing on the $35 trillion annual settlement volume in DeFi, a figure that's growing faster than traditional payment systems, as noted by the same Stablecoin Insider review.

Projects like Ondo, Ethena, and Noah are not just DeFi experiments-they're infrastructure. As global commerce shifts toward tokenized assets and programmable money, these undervalued players will capture significant market share.

Conclusion: The Next Phase of Financial Infrastructure

The stablecoin revolution is no longer theoretical. It's operational, scalable, and undervalued. For investors, the key is to identify projects that are building the rails of this new system-those with strong partnerships, innovative models, and regulatory alignment. The next decade of financial infrastructure will be built on stablecoins. The question is: who gets to own the rails?