Summer of Stablecoin

The combination of billions of stablecoins in circulation, trillions of dollars in completed transactions, growing business adoption from the biggest names in retail, successful IPOs, and rapidly advancing legislation through the U.S. Congress, and you can call it the summer of stablecoin.

The overall growth in stablecoin volume and user base, alongside Circle's triumphant 2025 IPO as the issuer of USD Coin (USDC), the world’s second-largest stablecoin, has significantly heightened interest in this transformative financial technology that merges the stability of traditional currencies with the innovation of blockchain. With over $230 billion in circulation and accounting for 80% of trading volume on major cryptocurrency exchanges, stablecoins are driving positive momentum in the global financial landscape.

One report indicates that in the last year, stablecoins have completed $33 trillion in transactions and make up the second-largest payment network in the world. For context, that volume is nearly 20 times PayPal’s volume, and three times Visa’s volume. Stablecoin volume is rapidly approaching that of the ACH global payments rail system.

Interest from the Biggest Names in Retail and Banking

Stablecoins offer significant benefits for businesses that operate across borders. Traditional payment methods can take days to settle, versus stablecoins' near-instant transactions. Also, businesses are charged more than $30 billion annually in interchange fees on debit and prepaid card transactions alone. Stablecoins are significantly cheaper.

This is why the world’s largest retailers, Walmart and Amazon, are reportedly exploring the launch of their own stablecoins, according to The Wall Street Journal. These efforts would position them alongside a growing group of companies, including Expedia and several major airlines, that are investigating how crypto-based payments might offer advantages over traditional cross-border payment technologies.

Walmart, known for its longstanding fintech initiatives, continues to expand its financial services, including its recently launched credit card. Amazon, on the other hand, is reportedly considering the development of a proprietary stablecoin to facilitate seamless online purchases within its ecosystem.   Shopify recently announced plans to adopt USDC for payments by year’s end, while Stripe is enabling small businesses in over 100 countries to accept stablecoins. Similarly, Google has introduced stablecoin payment options for its cloud services.

Even traditional financial institutions are entering the fray—JPMorgan, Bank of America, Wells Fargo, and other major banks are reportedly exploring the creation of a joint stablecoin. Meanwhile, Apple is considering adding stablecoin functionality to Apple Pay, further signaling the broader adoption of crypto-backed payment methods.

Understanding Stablecoins: A Key Innovation in Modern Finance

Stablecoins represent a transformative financial technology that combines the stability of traditional currencies with the innovation of blockchain. For those unfamiliar with stablecoins, they are digital assets designed to minimize volatility by being backed by reserves of cash or cash-like assets, such as U.S. Treasuries.

Unlike cryptocurrencies like Bitcoin or Ethereum, whose values fluctuate based on market speculation, stablecoins maintain a fixed value, often pegged 1:1 to government currencies like the U.S. dollar or euro. Well-known examples include USD Coin (USDC), Tether (USDT), and Euro-backed stablecoins like EURS.

These unique characteristics make stablecoins an essential tool not only for blockchain transactions but also for decentralized finance (DeFi), cross-border payments, and even the broader financial system. With over $230 billion in circulation and accounting for 80% of trading volume on major cryptocurrency exchanges, stablecoins are driving positive momentum in the global financial landscape.

Why Stablecoins Are Important

• Enabling Financial Stability and Accessibility Stablecoins act as a bridge between traditional finance and digital assets, providing much-needed price stability in the volatile cryptocurrency market. They empower investors and traders by offering a secure way to store value or hedge against market fluctuations. For example, a crypto investor worried about losing value in their Bitcoin holdings can quickly convert them into stablecoins like USDC, which maintain their peg to the dollar.
• Liquidity Backbone of Decentralized Finance (DeFi) DeFi platforms, such as Uniswap and AAVE, use stablecoins as a fundamental source of liquidity. In these ecosystems, stablecoins facilitate lending, borrowing, trading, and earning interest—all without relying on traditional banks or intermediaries. Their reliability and wide adoption underpin the explosive growth of decentralized financial applications.  
• Driving Innovation in Real-World Assets (RWA) Stablecoins are unlocking new opportunities by tokenizing real-world assets like real estate, gold, and U.S. Treasuries. For instance, Tether Gold (XAUt) allows investors to own and trade physical gold digitally. Leading asset managers, such as BlackRock, are exploring blockchain-based Treasury products, signaling mainstream acceptance of this innovation.
• Cross-Border Payments and Financial Inclusion Beyond crypto markets, stablecoins are revolutionizing international payments. Traditional cross-border transactions are often slow and expensive, but stablecoins allow for faster, cheaper, and more accessible transfers. This is especially crucial for people in developing countries who lack access to stable banking infrastructure. Notably, 70% of USDC usage today occurs outside the United States, with rapid adoption in regions like Asia, Latin America, and Africa.

Regulatory Clarity: A Catalyst for Growth and National Competitiveness

Despite their growing importance, stablecoin adoption is constrained by regulatory uncertainty. But the clouds may be clearing due to the U.S. Senate passing the GENIUS Act, the first time that body has passed significant crypto legislation. The weeks ahead will see what the House of Representatives does with the Senate’s bill, but clear and comprehensive regulation can unlock new possibilities, ensuring stablecoins remain a secure and globally competitive financial tool.

Key elements of the legislation include: Strict Backing Requirements: Every stablecoin must be backed 1:1 by safe, approved assets like U.S. dollars or short-term Treasury bills. Consumer Protections: Issuers must provide clear redemption procedures, regular reporting of reserves, and avoid misleading practices. Dual Regulation Options: Smaller issuers (less than $10 billion in stablecoins) can opt for state or federal oversight, provided state standards align closely with federal rules. While the GENIUS Act does not grant federal insurance in cases of issuer failure, it enforces anti-money laundering requirements and prioritizes fund recovery for users in the event of bankruptcy. These measures seek to strike a balance between safety, growth, and innovation.

Congress is motivated to pass legislation to gain the following benefits:

• Strengthening the U.S. Dollar’s Dominance With 98% of stablecoins pegged to the U.S. dollar, stablecoins play a vital role in preserving the dollar’s influence in the global financial system. However, global competitors, such as China’s digital yuan and Russia’s BRICS initiatives, are challenging the dollar's dominance. Regulatory clarity would reaffirm the centrality of U.S.-backed stablecoins in digital transactions, bolstering America’s financial leadership.  
• National Security and Resilience Countries like Venezuela and Iran are using alternative digital payment systems to bypass U.S. sanctions, reducing the dollar’s leverage in international finance. By regulating stablecoins and integrating them into the mainstream financial system, the U.S. can protect its economic interests and preserve its influence.  
• Enabling Institutional Participation and Innovation Regulatory certainty is key to attracting institutions like PayPal, Stripe, and BlackRock to expand their stablecoin-based services. Once rules for safety and compliance are established, large financial players can confidently explore tokenized assets and integrate stablecoins into traditional finance—unleashing substantial growth and innovation.
• Market Expansion: Clear rules will build trust among users, allowing the stablecoin market to scale and innovate further. Global Competitiveness: By establishing a robust stablecoin framework, the U.S. can outpace international competitors and maintain dollar-backed stablecoins as the gold standard for digital payments.
• Integration with Traditional Finance: Large financial institutions will be empowered to embrace blockchain-based assets and offer stablecoin-backed services to their customers.