Stablecoins Take Off in 2025 as PayPal, Stripe, and Washington Back the Push

With Stripe acquiring Bridge and PayPal integrating PYUSD
for merchant payments, 2025 is quickly shaping up to be a pivotal year for
stablecoins. These moves come amid a surge in stablecoin usage, with more than
$33 trillion in transactions processed last year—outpacing traditional networks
like Visa and Mastercard.

Analysts and institutions alike are beginning to
frame stablecoins not just as a crypto tool, but as a foundational piece of the
growing financial system. Standard Chartered has projected that the stablecoin
market could grow to $2 trillion by the end of 2028, from the current $230
billion.

A Practical Tool for Global Transactions

Stablecoins, typically pegged to fiat currencies like the
U.S. dollar, have proven their utility in cross-border payments and
remittances. Their promise lies in enabling fast, low-cost transactions
globally.

For instance, sending $200 from the U.S. to Nigeria via stablecoins
may cost less than a cent, compared to over $7 using traditional methods. In a
world with over a billion unbanked individuals, this efficiency could be
transformative.

Market Leaders and Growing Diversity

Today, Tether’s USDT and Circle’s USDC dominate the market
with an 89% share, and both are dollar-backed. However, new entrants such as
EURC and XCHF—tied to the euro and Swiss franc—are expanding the concept’s
reach.

With the possibility of a stablecoin law under the next U.S.
administration, institutions, enterprises, and governments could join the
ecosystem, unlocking competition and driving innovation.

Today, we’re unveiling a new stablecoin, PayPal USD (PYUSD). It’s designed for payments and is backed by highly liquid and secure assets. Starting today and rolling out in the next few weeks, you’ll be able to buy, sell, hold and transfer PYUSD. Learn more https://t.co/53RRBhmNHx pic.twitter.com/53ur2KmjU7

— PayPal (@PayPal) August 7, 2023

Regulatory Momentum Builds in the U.S.

Even major banks are paying attention. Bank of America
recently signaled it may issue its own stablecoin, should legal clarity emerge.
Bipartisan discussions in Washington suggest legislation could arrive within
President Donald Trump’s first 100 days in office.

Deloitte has echoed this
momentum, calling 2025 “the year of stablecoins,” citing rising market
capitalisation, swelling transaction volumes, and positive signals from
regulators.

Boosting Demand for U.S. Treasuries

The implications go beyond payments. Stablecoin issuers have
become significant buyers of U.S. Treasury notes, holding over $120 billion in
2024. That’s more than countries like Germany or South Korea. These digital
dollar proxies are not only reinforcing global demand for the greenback but
also offering the U.S. government a novel way to strengthen its debt markets
and dollar dominance.

🚀The stablecoin market cap has surged 32% in the past 6 months, climbing from $168.78 billion to $223.61 billion. With M2 now at $21.76 trillion, stablecoins make up 1% of the global money supply. 💸 Are we on the brink of seeing on-chain assets challenge the traditional… pic.twitter.com/KCGIKbCQ4j

— SoSoValue (@SoSoValueCrypto) April 24, 2025

User Adoption on the Rise

A report from Artemis and Dune highlights how user
engagement has grown. Active stablecoin wallets have jumped 53% this year, from
19.6 million to 30 million. Monthly transfer volumes more than doubled
year-over-year in February, reaching $4.1 trillion. Growth is being driven by
both institutional adoption and broader accessibility, particularly in payments
and DeFi applications.

Stablecoins Bridge Finance and Crypto Growth

Stablecoins are increasingly bridging traditional finance
and the decentralized economy, offering a stable alternative to volatile
cryptocurrencies for both individuals and institutions. With regulatory
frameworks developing and major players entering the space, stablecoins are
moving beyond experimentation to become a critical layer in global finance.

As
the ecosystem matures, early adopters strengthen their positions while new
entrants prepare to join, making 2025 a pivotal year for stablecoins to take center
stage in digital money.

This article was written by Mohadesa Najumi at www.financemagnates.com.