Stablecoins Surpass Visa in 2024, Processing $14 Trillion in Transactions

In 2024, stablecoins processed nearly $14 trillion in transactions, surpassing Visa's $13 trillion for the first time. This milestone underscores a significant shift in the global payments landscape, driven by the unique advantages of stablecoins. Unlike more volatile cryptocurrencies such as Bitcoin or Ethereum, stablecoins like Tether’s USDT and Circle’s USDC offer price stability, low costs, and high speed, making them particularly well-suited for cross-border payments. This has been a key area of growth, especially in regions with volatile local currencies.

This record volume follows rapid growth, with stablecoin transactions doubling from roughly $7 trillion just a year earlier. The stability, combined with low costs and high speed, makes stablecoins well-suited for cross-border payments – a key area of growth. They are proving particularly useful in regions with volatile local currencies.

The rapid growth of stablecoins is also fueled by increasing interest from major financial institutions. Prominent companies are exploring or actively using stablecoins, further boosting market growth. Additionally, policymakers are examining stablecoins through two key U.S. bills, both of which are under active consideration in Congress. These developments indicate a growing recognition of the potential of stablecoins in the financial ecosystem.

Much of this stablecoin activity takes place on the Ethereum network, which remains a crucial backbone for these dollar-pegged digital assets. Despite challenges with high fees and scaling, Ethereum's infrastructure is supported by Layer-2 scaling solutions. These Layer-2 solutions enable stablecoin payments to operate efficiently and affordably on the network, further enhancing the appeal of stablecoins for various financial transactions.