Stablecoins Take Off in 2025 as PayPal, Stripe, and Washington Back the Push ⋅ Crypto World Echo
With Stripe acquiring Bridge and PayPal integrating PYUSDfor merchant payments, 2025 is quickly shaping up to be a pivotal year forstablecoins. These moves come amid a surge in stablecoin usage, with more than$33 trillion in transactions processed last year—outpacing traditional networkslike Visa and Mastercard.
Analysts and institutions alike are beginning toframe stablecoins not just as a crypto tool, but as a foundational piece of thegrowing financial system. Standard Chartered has projected that the stablecoinmarket could grow to $2 trillion by the end of 2028, from the current $230billion.
A Practical Tool for Global Transactions
Stablecoins, typically pegged to fiat currencies like theU.S. dollar, have proven their utility in cross-border payments andremittances. Their promise lies in enabling fast, low-cost transactionsglobally.
For instance, sending $200 from the U.S. to Nigeria via stablecoinsmay cost less than a cent, compared to over $7 using traditional methods. In aworld with over a billion unbanked individuals, this efficiency could betransformative.
Market Leaders and Growing Diversity
Today, Tether’s USDT and Circle’s USDC dominate the marketwith an 89% share, and both are dollar-backed. However, new entrants such asEURC and XCHF—tied to the euro and Swiss franc—are expanding the concept’sreach.
With the possibility of a stablecoin law under the next U.S.administration, institutions, enterprises, and governments could join theecosystem, unlocking competition and driving innovation.
Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD. Learn more https://t.co/53RRBhmNHxpic.twitter.com/53ur2KmjU7
— PayPal (@PayPal) August 7, 2023
Regulatory Momentum Builds in the U.S.
Even major banks are paying attention. Bank of Americarecently signaled it may issue its own stablecoin, should legal clarity emerge.Bipartisan discussions in Washington suggest legislation could arrive withinPresident Donald Trump’s first 100 days in office.
Deloitte has echoed thismomentum, calling 2025 “the year of stablecoins,” citing rising marketcapitalisation, swelling transaction volumes, and positive signals fromregulators.
Boosting Demand for U.S. Treasuries
The implications go beyond payments. Stablecoin issuers havebecome significant buyers of U.S. Treasury notes, holding over $120 billion in2024. That’s more than countries like Germany or South Korea. These digitaldollar proxies are not only reinforcing global demand for the greenback butalso offering the U.S. government a novel way to strengthen its debt marketsand dollar dominance.
🚀The stablecoin market cap has surged 32% in the past 6 months, climbing from $168.78 billion to $223.61 billion. With M2 now at $21.76 trillion, stablecoins make up 1% of the global money supply. 💸 Are we on the brink of seeing on-chain assets challenge the traditional… pic.twitter.com/KCGIKbCQ4j
— SoSoValue (@SoSoValueCrypto) April 24, 2025
User Adoption on the Rise
A report from Artemis and Dune highlights how userengagement has grown. Active stablecoin wallets have jumped 53% this year, from19.6 million to 30 million. Monthly transfer volumes more than doubledyear-over-year in February, reaching $4.1 trillion. Growth is being driven byboth institutional adoption and broader accessibility, particularly in paymentsand DeFi applications.
Stablecoins Bridge Finance and Crypto Growth
Stablecoins are increasingly bridging traditional financeand the decentralized economy, offering a stable alternative to volatilecryptocurrencies for both individuals and institutions. With regulatoryframeworks developing and major players entering the space, stablecoins aremoving beyond experimentation to become a critical layer in global finance.
Asthe ecosystem matures, early adopters strengthen their positions while newentrants prepare to join, making 2025 a pivotal year for stablecoins to take centerstage in digital money.
This article was written by Mohadesa Najumi at www.financemagnates.com.
