Stablecoins' 2024 Volume Surges 84% to $230 Billion, VCs See $10 Trillion Opportunity

Stablecoins have emerged as one of the most successful aspects of the crypto industry, attracting significant attention from venture capitalists (VCs) who view them as a long-term investment opportunity. The use of stablecoins has expanded rapidly, with billions of dollars moving through them daily, and their adoption is growing across various sectors including payments, savings, and business applications. Investors now see stablecoins as a bridge between the crypto world and the real economy.

One of the key events that renewed VC interest in stablecoins was Stripe's acquisition of Bridge for $1.1 billion last October. This deal, the largest crypto M&A transaction to date, marked a significant milestone as a major fintech company integrated stablecoin infrastructure into its operations. Juan Lopez, a general partner at VanEck Ventures and former leader at Circle Ventures, highlighted the potential of Stripe's $1 trillion in total payment volume. If Stripe can transition this volume onto its own stablecoin and operate an interoperable platform, it could unlock a net interest margin opportunity of approximately $40 billion per year over the next few years, assuming treasury yields remain around 4%.

This monetization potential is why VCs are now viewing stablecoins as a trillion-dollar opportunity, not just within crypto but across global finance. Stefan Cohen, a partner at Bain Capital Crypto, noted that the annual stablecoin settlement volume could exceed $10 trillion, indicating that the industry is still in its early stages. The growth of stablecoins is occurring at a large scale and is no longer tied to crypto market cycles. The total stablecoin supply has increased from about $125 billion at the start of 2024 to nearly $230 billion today, an 84% increase. Cross-border payments on stablecoin rails have reached as much as $50 billion per month, up from virtually zero just fifteen months ago. This real-world usage, particularly outside of trading, has elevated stablecoins from being just a supporting layer in the crypto stack to a critical component.

VCs are not only focused on the traction of stablecoins but also on their economic viability. Top issuers like Tether are generating billions in revenue from treasury yields with minimal overhead. This profitable business model is attracting startups, banks, and fintechs aiming to issue their own stablecoins. "There is not a single financial services or fintech company in the world that doesn't have a stablecoin strategy today," said Rob Hadick, a general partner at Dragonfly. The opportunity extends beyond issuers, as VCs are backing startups building the infrastructure that makes stablecoins usable, including blockchains, wallets, payment platforms, and compliance tooling. Some are betting on app-first models where stablecoins are integrated into products people use daily, making them a seamless part of the user experience.

However, the scalability of stablecoins depends on regulatory clarity, which VCs see as both the biggest opportunity and the biggest risk. A clear U.S. framework could drive adoption from banks, fintechs, and enterprises. David Pakman, managing partner and head of venture investments at CoinFund, expects at least a fivefold increase in stablecoin supply and transfer volume once regulation becomes law. VanEck's Lopez predicted that stablecoins could reach cloud-level scale within five years of a stablecoin bill being passed, comparing it to the rise of cloud computing. However, there are concerns that regulation could favor large institutions, potentially stifling growth for smaller players. Jed Breed, founder of Breed VC and former head of digital assets at Circle, warned that if only large institutions are allowed to issue stablecoins, it could hinder innovation. Hadick noted early signs of this dynamic, citing bills shaped by banking lobbies and stablecoin integrations being deployed in closed systems, which could entrench incumbent players and cut off the rest of the market.

The consensus among VCs is that stablecoins will become the default way value moves online. The infrastructure is being built, regulation is taking shape, and real-world demand is already present. While the shift won't happen overnight, it is already in motion. As Hadick put it, "Stablecoins aren't going to be the best product for all forms of payments, collateral mobility, savings, etc., but they are better and will continue to get better for many, many use cases, eating into that trillions of dollars of the addressable market."

Stablecoins saw their biggest year yet in 2024, moving over $5.5 trillion in adjusted volume across more than 1.2 billion transactions. This momentum has continued into 2025, with adjusted volume already crossing $2 trillion in the first few months. If this pace holds, 2025 is on track to surpass last year's total, potentially hitting $6 trillion in volume by year-end. These figures reflect real economic usage, filtering out bots, exchange rebalancing, and high-frequency noise. The trend is clear—stablecoins are becoming a routine part of the financial landscape.