Stablecoin Transactions Surpass Visa's in Q1 2025, Growing 30%

In a significant development for the digital finance sector, stablecoin transactions surpassed those of Visa in the first quarter of 2025. This milestone underscores the rapid growth and increasing adoption of blockchain-based assets, despite a decline in overall crypto prices following a brief post-election rally. The Bitwise Q1 2025 Crypto Market Review highlighted that stablecoin transaction volume slightly exceeded Visa’s, marking a pivotal shift in the usage of digital assets.

According to the report, stablecoin usage surged by 30%, with assets under management reaching a record $218 billion and the total market cap hitting $237 billion. Matt Hougan, CIO of Bitwise, noted that the future potential of stablecoins is vastly underestimated. This growth was driven by a pro-crypto U.S. president and the SEC dropping several high-profile lawsuits, creating a historically positive regulatory environment.

Additionally, the value of tokenized real-world assets grew from $14 billion to $19 billion, nearly doubling year-over-year. This increase was primarily driven by rising demand for tokenized U.S. Treasuries. The decentralized finance (DeFi) sector also saw renewed investor interest, with projects in this space drawing 18% of Q1 venture capital funding, matching infrastructure investments. Notable deals included World Liberty Financial's $590 million raise and Ethena’s $100 million funding round.

This surge in stablecoin transactions and the growth of tokenized assets reflect a broader trend towards the integration of blockchain technology into traditional financial systems. The increasing adoption of stablecoins and tokenized assets suggests that these digital financial instruments are becoming more mainstream, offering stability and liquidity in an otherwise volatile crypto market.

The regulatory environment also played a crucial role in this growth. The pro-crypto stance of the U.S. president and the SEC's decision to drop several high-profile lawsuits created a more favorable climate for digital assets. This regulatory support, combined with the inherent benefits of stablecoins and tokenized assets, has likely contributed to their increased adoption and usage.

Looking ahead, the future of stablecoins and tokenized assets appears promising. As more investors and institutions recognize the potential of these digital financial instruments, their usage is likely to continue growing. This trend could further disrupt traditional financial systems, offering new opportunities for innovation and efficiency in the digital finance sector.