The following is a guest post and perspective from Forest Bai, Co-Founder at Foresight Ventures.
Stablecoins have transcended their initial niche within the cryptocurrency landscape; they now serve as the essential infrastructure driving the future of global payments.
In the last year, the market capitalization of stablecoins has seen a remarkable increase, climbing from just below $150 billion to an unprecedented $232 billion, while transaction volumes have tripled—now surpassing even the extensive network of Visa.
Tether (USDT), USD Coin (USDC), and PayPal’s PYUSD maintain their leadership in transaction flows, yet numerous new stablecoin entrants are emerging, each aimed at particular regions, user demographics, or business requirements.
The rapid expansion of this sector solidifies the transition of stablecoins from a crypto novelty to a pivotal payment infrastructure. These assets now operate at the crucial junctions of regulation, fintech, and practical application.
New U.S. Regulations Could Mark a Key Turning Point
Among the most notable developments is the increased focus from Washington on regulating stablecoins. The bipartisan GENIUS Act proposed in the Senate could establish the first balanced federal approach to the space.
This legislation acknowledges both bank and non-bank issuers, permits state-regulated entities to proceed with operations, and necessitates full 1:1 backing along with strict adherence to consumer protection laws. It aims to enhance the safety of stablecoins while fostering innovation.
The STABLE Act, which is set to be reviewed by the House Financial Services Committee on April 2, emphasizes risk management and abuse minimization through reinforced anti-money laundering strategies and heightened oversight. Combined, these bills indicate that the U.S. is no longer remaining passive.
Treasury Secretary Scott Bessent has expressed his support for the advancement of stablecoins as a crucial priority. He envisions stablecoins as a means to extend the dominance of the U.S. dollar into the digital realm, enabling the U.S. to maintain its global financial influence without necessitating a complete overhaul of the monetary system.
Enterprise Infrastructure Is Shifting On-chain
The most recent report from Foresight Ventures illustrates how stablecoins are effectively closing long-established gaps in conventional finance: When cross-border transactions via bank wires are sluggish and costly, stablecoins enable instantaneous settlement for mere cents. They operate globally and continuously, avoiding reliance on outdated systems like SWIFT or ACH.
Adoption among enterprises is growing rapidly as stablecoins provide quicker liquidity, lower settlement costs, and programmable payment options.
Stripe’s acquisition of Bridge highlights the increasing commitment of major payment systems to stablecoins. Bridge allows businesses to connect to the blockchain economy and issue and manage stablecoins seamlessly. BVNK streamlines payment routing across fiat, crypto, and local banking partners, empowering global firms to integrate stablecoins into their financial frameworks.
Yield-bearing stablecoins, such as Mountain’s USDM or Ethena’s USDe, add new functionality to digital dollars by offering better returns than typical savings accounts, with reduced intermediaries. If these applications prove to be sustainable, they may become significantly appealing to both businesses and consumers.
Consumer Payment Apps Are Rapidly Integrating Stablecoins
Stablecoins are being incorporated into platforms that users are already familiar with, including PayPal, Venmo, Nubank, and Revolut, which now feature stablecoin functionalities directly in their interfaces. This enables consumers to conduct global transactions, send remittances, and pay merchants without needing in-depth knowledge of blockchain technology.
Merchant adoption is also keeping pace, as evidenced by Stripe accepting stablecoins and the forthcoming integrations of Apple Pay and Google Pay, which are eliminating the final hurdles for everyday usage.
Platforms like Helio and Decaf empower merchants to settle in stablecoins through Shopify and other e-commerce platforms. These tools are crucial in developing regions where credit card networks are either inefficient or entirely absent. Freelancers and gig workers increasingly rely on stablecoins for direct payments, avoiding losses due to currency conversions and delays in banking processes.
Behind the scenes, processors like MoonPay, Ramp, and Alchemy Pay manage intricate compliance requirements, facilitating fiat transitions and KYC verification. This supportive infrastructure is crucial for ensuring the smooth and compliant use of stablecoins at scale.
The Emergence of a Stablecoin-Native Economy
An innovative financial ecosystem is taking shape. In various regions, particularly in Latin America and Southeast Asia, stablecoins are already outperforming local banking services: Individuals are opting to hold stablecoins as an alternative to local fiat to preserve their wealth. For example, during the period from July 2023 to July 2024, 47% of transactions below $10,000 were conducted using stablecoins, underscoring their significance in daily transactions and remittances.
The pressures of high inflation and the devaluation of local currencies have led users to increasingly store savings in stablecoins, while businesses are turning to them for real-time treasury operations, and developers are creating native stablecoin applications that bypass traditional banks entirely.
Chains like Solana and Tron together handle $77 billion in stablecoin transactions by providing speed and cost efficiencies that traditional finance cannot match. New entrants like Codex aim to incentivize stablecoin distribution by sharing sequencer fees directly with issuers.
These networks are fine-tuned for finality, cost, and throughput—in line with the high demands of stablecoin finance.
The revenue-sharing models employed by issuers such as Paxos and Agora create network effects—encouraging fintech apps, payment processors, and even traditional banks to integrate and proliferate stablecoins.
What Lies Ahead?
The forthcoming phase of growth will concentrate on widespread adoption and the maturation of regulations. Nation-state stablecoins are likely to emerge, and businesses will progressively incorporate yield-bearing stablecoins into their treasury strategies.
Consumers will engage in transactions using stablecoins in a seamless manner—often without explicit awareness—as financial products increasingly incorporate them as fundamental infrastructure rather than relying solely on fiat. At current trends, the stablecoin market cap is projected to surpass $400 billion by next year.
The year 2025 stands to be pivotal for the U.S. in establishing leadership in digital finance. With regulatory frameworks gaining clarity and the necessary technological infrastructure already established, the successful passage of both the GENIUS Act and STABLE Act could enable the U.S. to define the next chapter in global digital payments.