Stablecoins have emerged as a dominant force in global finance, surpassing traditional payment giants in scale and signaling a paradigm shift in how money moves across the world. According to the 2025 “State of Crypto” report by venture capital firm Andreessen Horowitz (a16z), stablecoins facilitated a staggering $46 trillion in on-chain transactions over the past year — nearly three times the volume processed by Visa in the same period.
Originally designed as tools for cryptocurrency trading, stablecoins have evolved into foundational infrastructure for global financial settlements. This rapid transformation highlights their growing importance beyond speculative markets, serving increasingly as real-world instruments for transferring value.
Even when adjusted to remove non-organic activity — such as automated arbitrage trades and internal exchange transfers — the volume still stands at $9 trillion annually. This figure alone exceeds PayPal’s yearly transaction volume, placing stablecoins firmly among the most utilized financial technologies globally.
A16z’s report underscores that in September 2025 alone, adjusted stablecoin transaction volume reached nearly $1.25 trillion, setting a new monthly record. Crucially, this surge is not tied to broader crypto market activity, which suggests that stablecoins are being adopted for genuine economic use cases: cross-border payments, payroll services, remittances, and decentralized finance (DeFi) applications.
The total market capitalization of stablecoins has now surpassed $300 billion. Tether (USDT) and USDC dominate this sector, collectively accounting for 87% of all tokens in circulation. Settlement of these transactions is primarily conducted on the Ethereum and Tron blockchains, which together handle 64% of the adjusted on-chain volume, indicating their central role in supporting this new financial infrastructure.
The macroeconomic significance is becoming increasingly clear. For the first time, more than 1% of all U.S. dollars in existence are now represented on public blockchains in the form of tokenized stablecoins. Beyond this, stablecoin issuers have become major players in U.S. government debt markets — collectively holding over $150 billion in Treasuries and ranking 17th among global holders.
This explosive growth in stablecoin usage is just one signal of a broader maturation across the crypto ecosystem. A16z’s analysts describe 2025 as the year when “the world came onchain,” reflecting a shift from experimental use to mainstream adoption. Blockchain networks have dramatically scaled, now supporting over 3,400 transactions per second — more than 100 times their throughput from just five years ago.
The number of monthly active crypto users has also expanded significantly, now ranging between 40 and 70 million globally. This marks an increase of around 10 million users compared to the previous year and demonstrates a rising comfort level with blockchain-based platforms among both retail and institutional users.
One of the key drivers behind this shift is the increasing integration of stablecoins into real-world applications. Businesses are leveraging stablecoins for international payments, reducing costs and settlement times compared to traditional correspondent banking systems. Freelancers and remote workers in developing countries are receiving salaries in stablecoins to avoid local currency volatility. Even governments are beginning to explore stablecoins as a means to streamline aid distribution and improve financial inclusion.
The diversification of the stablecoin market is also underway. While USDT and USDC continue to dominate, newer entrants are targeting niche use cases, such as algorithmic stability, privacy preservation, or compliance-first frameworks tailored to regulated institutions. This growing variety expands the utility of stablecoins across different geographies and economic environments.
Institutional adoption is another accelerating trend. Major financial institutions are experimenting with blockchain settlement layers and stablecoin-based clearing systems. Some banks are even partnering with crypto-native firms to issue their own fiat-backed digital currencies, aiming to stay competitive in an increasingly tokenized economy.
Regulators are taking notice. In the U.S., discussions around stablecoin legislation have intensified, with policymakers recognizing both the systemic potential and the risks associated with widespread adoption. Meanwhile, countries like Singapore, Switzerland, and the UAE are racing to build regulatory frameworks that support innovation while maintaining financial stability.
Looking ahead, the stablecoin ecosystem is poised for further growth as it becomes more embedded in everyday financial services. The convergence of scalability, regulatory clarity, and user demand is creating fertile ground for the next phase of adoption — one where stablecoins could underpin not only crypto-native applications but also traditional sectors like trade finance, supply chain logistics, and capital markets.
In summary, the rise of stablecoins marks a watershed moment in the evolution of digital finance. Once seen as a niche tool for traders, these digital assets are now facilitating trillions in economic activity, rivaling the largest financial networks in the world. As blockchain infrastructure continues to mature, stablecoins are likely to serve as a cornerstone of a more open, efficient, and programmable global financial system.