Stablecoins have rapidly ascended to become the primary settlement layer for online transactions, overtaking traditional payment giants Visa and Mastercard in onchain transaction volume, according to industry experts at Alchemy. Noam Hurwitz, Alchemy’s head of engineering, highlighted that stablecoins have experienced explosive growth, now serving as the default rails for internet payments.
This shift is driven by major payment platforms like PayPal and Stripe integrating stablecoins into their systems, leveraging blockchain infrastructure to enable faster, cheaper, and more secure transactions. Hurwitz noted that stablecoins have surpassed Visa and Mastercard by approximately 7% in onchain transaction volume, marking a significant transformation in digital money movement.
Supporting this trend, recent market reviews reported that stablecoins processed over 27.6 trillion dollars in transactions during the year, slightly exceeding Visa’s total payment volume and outpacing Mastercard by 7.7%. The surge was primarily fueled by leading stablecoins such as USDT, USDC, and DAI, with 95% of transactions settled on the Ethereum network.
The stablecoin ecosystem is also expanding in scale and adoption. Reports revealed a 53% increase in stablecoin adoption over the past year, with active wallets growing from 19.6 million to 30 million and the total stablecoin supply rising from 138 billion to 225 billion dollars. Monthly transfer volumes surged by 115%, underscoring the growing role of stablecoins as a bridge between traditional finance and decentralized ecosystems.
Institutional interest is intensifying as well, with stablecoins becoming major purchasers of U.S. Treasury securities. For example, Tether (USDT) reportedly generated 13 billion dollars in profits last year while holding approximately 113 billion dollars in U.S. debt. This integration signals stablecoins’ increasing entrenchment within the broader financial system.
Regulatory clarity is further accelerating adoption. The recent passage of a U.S. Senate bill establishes federal guardrails for stablecoins, introducing licensing, transparency, and consumer protection measures. This legislation aims to balance innovation with financial stability, encouraging more institutional players to enter the space.
Despite these advances, challenges remain, particularly regarding blockchain fragmentation and the need for enterprise-grade reliability. Hurwitz emphasized that while stablecoins are becoming the default payment rails, institutions must carefully evaluate provider stability and counterparty risks in this still-maturing industry.
Looking ahead, experts anticipate that most financial services will deploy their own blockchains or layer 2 solutions to scale operations and improve interoperability. This evolution is expected to foster seamless crosschain transactions, creating a more connected and efficient financial ecosystem centered on stablecoins.
In summary, stablecoins have transitioned from niche crypto assets to foundational components of the internet’s payment infrastructure, outpacing traditional card networks in volume and gaining widespread acceptance among consumers, businesses, and regulators alike. This marks a pivotal moment in the evolution of digital finance, signaling a future where stablecoins play a central role in global money movement.
