- Bitwise report shows stablecoins processed nearly $14 trillion, exceeding Visa’s $13 trillion.
- Growth driven by cross-border payments, institutional interest (PayPal, BoA), potential US regulation.
- Ethereum network, supported by Layer 2s, remains key infrastructure for stablecoin activity.
In what’s a major milestone, stablecoin transaction volume surpassed Visa’s global total for the first time in 2024.
A new Bitwise report shows stablecoins processed close to $14 trillion in transactions last year, exceeding Visa’s $13 trillion. This marks a major shift in the global payments system.
What’s Driving Stablecoin Growth?
This record volume follows rapid growth, with stablecoin transactions doubling from roughly $7 trillion just a year earlier. Stablecoins like Tether’s USDT and Circle’s USDC provide price stability unlike more volatile cryptocurrencies such as Bitcoin or Ethereum.
That stability, combined with low costs and high speed, makes stablecoins well-suited for cross-border payments – a key area of growth. They are proving particularly useful in regions with volatile local currencies, such as parts of Latin America and Africa.
Related: Can USDC Catch Up? Stablecoin Market Heats Up as Tether Holds the Top Spot
Major financial institutions are also showing increased interest, further boosting market growth. Prominent companies like PayPal, Fidelity, and Bank of America are now exploring or actively using stablecoins.
In addition, policymakers are now examining stablecoins through two key U.S. bills, the GENIUS Act and the STABLE Act, both of which are under active consideration in Congress.
What’s Ethereum’s Role?
Much of this stablecoin activity takes place on the Ethereum network. While Ethereum itself has faced challenges with high fees and scaling, it remains a crucial backbone for these dollar-pegged digital assets.
Related: Enterprise Focus: Ripple Integrates RLUSD Stablecoin into Core Payments
Layer-2 scaling solutions like Arbitrum, Optimism, and Base are helping Ethereum handle this volume. These L2s, working with Ethereum’s core infrastructure, enable stablecoin payments to operate efficiently and affordably on the network.
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