Traditional Giants Clash With Crypto Companies as Stablecoins Reshape $900 Billion Cross-Border Payments Market

The stablecoin market is transforming the cross-border payments landscape, with global transaction value reaching $33 trillion in 2025, according to data from Bloomberg and Artemis Analytics. U.S. Dollar Coin (USDC) led in transaction volume with $18.3 trillion, followed by Tether's USDT with $13.3 trillion according to reports. This growth is driven by regulatory clarity, including the passage of the GENIUS Act in July 2025, which provided legal certainty for stablecoin operations.

Traditional financial firms are adapting by integrating stablecoin-based solutions. Revolut reported a 150% increase in stablecoin payments in 2025, while Western Union plans to launch a stablecoin settlement system on Solana in 2026. MoneyGram and Zelle are also developing stablecoin-based cross-border transfer capabilities.

Stablecoin adoption is expanding beyond fintech. Visa partnered with BVNK to enable stablecoin pre-funding and payouts on its Visa Direct platform, allowing businesses to send funds directly to recipients' stablecoin wallets. This move aims to improve settlement times and reduce operational bottlenecks.

Why the Move Happened

The growth of stablecoins is largely attributed to the GENIUS Act, which set federal standards for payment stablecoins in the U.S. Prior to its passage, uncertainty around legal and regulatory frameworks slowed adoption. The Act provided clarity by defining stablecoins as payment tools rather than savings products and mandating that issuers hold only short-term deposits, government bonds, or Fed reserves.