Stablecoins could revolutionize the payment sector.
In the ever-evolving world of finance, stablecoins are making waves as a promising new development. According to Standard Chartered, the stablecoin market could potentially grow nearly tenfold, reaching a staggering US$2 trillion by 2028.
The momentum for stablecoins has been further propelled by significant developments in legislation. On July 18, 2025, the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) was signed into law, marking the United States' first major national cryptocurrency legislation.
Currently, Tether (USDT) leads the stablecoin market with a US$167 billion capitalization, accounting for more than 80% of total stablecoin trading volume on centralized exchanges. Companies like Visa are jumping on the bandwagon, investing in BVNK, a provider of enterprise-grade infrastructure for stablecoin payments, and announcing a card-issuing product in partnership with Bridge, allowing cardholders to make purchases using stablecoin balances.
Stablecoins are not just a passing fad; they are increasingly being adopted in various sectors. According to a report by Financial Technology (FT) Partners, stablecoins are seeing growing adoption in cross-border payments, P2P remittances, B2B payments, and treasury management.
The appeal of stablecoins lies in their ability to combine with smart contracts to support payment-versus-payment systems, reducing counterparty risk and increasing efficiency. Additionally, they offer real-time payments with lower transaction fees and near-instantaneous settlement, making them attractive alternatives to traditional financial rails like card networks and SWIFT.
In Asia, countries like South Korea and China are leveraging stablecoins for financial modernization. South Korea’s top banks have partnered with Tether and Circle to develop USD/KRW stablecoins, while China is preparing yuan-backed stablecoins with pilot programs in Hong Kong and Shanghai.
The payment processing segment of the stablecoin market is relatively early in its commercial development, according to research by CB Insights. However, they expect stablecoin payment companies to receive US$454 million in funding this year, a more than tenfold increase from the US$45 million they received in 2024.
Mastercard has partnered with platforms like Crypto.com, MetaMask, OKX, and Kraken to enable stablecoin payments at 150 million merchant partners. Corporate enthusiasm is fueling the stablecoin surge, with companies like Walmart and Expedia exploring their own stablecoins.
Even tech giants like Facebook's parent company, Meta, are considering using stablecoins for payouts. Meanwhile, BlackRock launched the BlackRock USD Institutional Digital Liquidity Fund in August 2024, a product that digitizes traditional assets like cash and US Treasury bills on networks like Ethereum and Solana.
As stablecoins expand into foundational elements of the global financial system, they are poised to make payments faster, cheaper, and programmable. Our website is hosting a webinar discussing the drivers behind stablecoin adoption, potential success factors, and their role in shaping the future of payments. Stay tuned for more updates on this exciting frontier!
