Stablecoins Surge 72% in 14 Months, Disrupting $27 Trillion Payment Flows

Vedang Vatsa, a prominent researcher, has released a comprehensive paper titled "Stablecoins in the Modern Financial System" as part of the SPG Market Intel research series. The paper delves into the profound impact of stablecoins on the global financial ecosystem, highlighting their role in disrupting traditional payment systems.

The study reveals that stablecoins are significantly influencing global payment flows, which amount to a staggering $27 trillion. This disruption is evident in the remarkable growth of stablecoin market capitalization, which surged from $132 billion in January 2024 to $227.4 billion by March 2025, marking a 72% increase. This growth is driven by their rising adoption in cross-border payments and decentralized finance (DeFi), aligning with trends noted in a 2023 World Bank report that attributed a one-third drop in remittance costs over 15 years to fintech innovations like stablecoins.

The paper further notes that stablecoin transaction volumes hit $27.6 trillion by December 2024, outpacing the combined payment volumes of Visa and Mastercard by 7.7%. This shift is corroborated by Coinbase Institutional data showing a 17% year-over-year volume increase, signaling a challenge to traditional payment giants. Geographically, adoption patterns vary significantly. USDT dominates in Asia and Europe, while USDC leads in North America, a segmentation reflecting diverse regulatory environments. This finding echoes a 2020 S&P Global study on stablecoin market dynamics, which linked regional adoption to local financial policies.

Vatsa emphasizes that stablecoins’ stability, achieved through fiat or crypto collateral, combined with their efficiency, makes them a vital infrastructure for round-the-clock financial activities, especially on weekends when traditional systems lag. However, the paper also flags risks, including depegging and regulatory uncertainty, urging careful policy frameworks to ensure financial stability.

As stablecoins evolve, Vatsa invites readers to explore further insights on Web3 and AI via his Telegram community. This research not only highlights stablecoins’ potential but also sets the stage for a broader conversation on their role in shaping the future of finance.