Stablecoin payments hit $5 trillion as regulatory clarity fuels growth

Stablecoin transactions have surpassed $5 trillion in total payments across one billion transactions globally in 2025, according to new data from Visa and blockchain analytics firm Allium [1]. This represents a significant milestone for stablecoins, which have increasingly been used for cross-border and digital payments due to their efficiency and stable value. The total value of stablecoins has risen by 47% since the 2024 U.S. presidential election, reaching $255 billion [1]. Analysts attribute this growth to investor enthusiasm, clearer regulatory environments, and the emergence of new corporate applications.

The rise of stablecoins reflects a broader shift in global payment behavior, with users and institutions favoring digital assets over traditional systems. These tokens offer a faster, simpler, and cheaper alternative to legacy payment methods, particularly in regions that have historically been excluded from major banking and payment networks [1]. For many, stablecoins are now enabling transactions that used to take days to be completed in minutes, opening up new opportunities for individuals and businesses.

Despite these advancements, stablecoins have not fully resolved the issue of foreign exchange (FX) costs, which continue to be a major challenge in cross-border payments. Converting one fiat currency to another—such as euros to Hong Kong dollars—still involves spreads, conversion fees, intermediary charges, and slippage [1]. These costs persist even in crypto-based transfers, especially when funds are being converted between blockchain networks and traditional bank accounts.

Mike Robertson, CEO of FX infrastructure provider AbbeyCross, argues that the crypto industry often overestimates its ability to solve complex FX issues. He emphasizes that each currency operates under unique economic dynamics and that the value of a currency remains where money is being made [1]. Furthermore, most traditional banks and payment providers earn revenue through FX margins rather than transaction fees, a factor that limits the cost advantages of stablecoins in certain scenarios.

In response to these challenges, startups are focusing on under-served payment corridors. For example, London-based BVNK is streamlining transfers between countries like Sri Lanka and Cambodia, which traditionally involve multiple intermediaries and are both costly and slow [1]. While stablecoins do not eliminate all costs, they significantly reduce processing time and improve capital efficiency. BVNK processes around $15 billion annually through this model.

Other companies, such as Singapore-based Thunes and Canada’s Aquanow, are integrating blockchain-based transfers with local currency and wallet solutions by partnering with stablecoin issuers and large corporations [1]. These efforts aim to bridge the final step in cross-border payments—delivering value directly into local accounts or digital wallets.

Regulatory developments are also shaping the future of stablecoins. In the U.S., the GENIUS Act, signed into law on July 18, 2025, provides a framework for federal regulation of stablecoins [1]. The legislation requires stablecoins to be fully backed by high-quality assets, subject to regular audits, and maintain transparency. This regulatory clarity is expected to encourage greater institutional adoption and trust in the space.

Banks are adapting quickly to these changes. Bank of America estimates that new regulations could add between $25 billion and $75 billion to stablecoin supply in the short term [1]. Visa, for example, has launched a platform enabling banks to generate, redeem, mint, and burn fiat-backed tokens, including stablecoins, as part of its broader strategy to integrate digital assets into traditional financial infrastructure.

Corporate activity in the stablecoin space is also accelerating. Ripple recently acquired stablecoin payment platform Rail for $200 million to enhance its cross-border ecosystem [1]. Meanwhile, Thunes, which raised $150 million in April, is deepening its integration with stablecoin networks.

Industry leaders believe that regulatory progress, infrastructure development, and institutional adoption will continue to drive the mainstream use of stablecoins. As Sagar Sarbhai of BVNK noted, the foundation for significant growth has already been laid and could expand rapidly in the coming months [1].

Source: [1] Stablecoin payments soar past $5T while FX fees fall behind (https://coinmarketcap.com/community/articles/6896acc03e7f0939817a85b1/)