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Stablecoins are rapidly evolving from a niche vertical in the cryptocurrency ecosystem into a foundational element of the global financial system, expanding beyond their initial role as lower-risk alternatives to volatile cryptocurrencies.
One of the most significant and impactful applications of stablecoins is in payments, with growing adoption across cross-border payments, peer-to-peer (P2P) remittances, business-to-business (B2B) payments, and treasury management, according to a new report by Financial Technology (FT) Partners, a fintech-focused investment bank.
Released in May, the report provides an update on the current state of the stablecoin market, exploring the technology’s use cases in consumer, B2B, and cross-border payments. It highlights the emergence of stablecoins and other blockchain-based payment systems as alternatives to traditional financial rails, such as card networks and SWIFT.
Unlike traditional banking systems, which often involve slow routing and settlement processes, crypto payments operate on their own decentralized networks, enabling real-time payments, the report says. These types of payments offer a number of advantages, it says, including greater accessibility, since anyone with a digital wallet can use them without needing a bank account. Furthermore, transaction fees are often more than 50% lower than traditional rails, with near-instantaneous settlement.
In addition, stablecoins can be combined with smart contracts to support payment-versus-payment systems, where transactions are settled only when both parties confirm their payment instructions. This reduces counterparty risk and increases efficiency, the report says.
Additional institutional use cases are growing as well. In March 2024, BlackRock launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which digitizes traditional assets like cash, US Treasury bills and repurchase agreements. The product allows investors to earn yield while holding these assets as blockchain-based tokens on networks such as Ethereum and Solana.
Research by CB Insights indicates that within the stablecoin market, the payment processing segment remains relatively early in its commercial development, with roughly half of the leading companies in this space remaining in the initial stages of commercial maturity.
However, this space is demonstrating significant growth potential. CB Insights expects stablecoin payment companies to receive US$454 million in funding this year, a more than tenfold increase from the US$45 million they received in 2024.
Interest in stablecoins as a payments continues to accelerate this year. In February, Stripe acquired stablecoin player Bridge for a staggering US$1.1 billion, its largest acquisition to date. The deal marks a bold bet on stablecoins as a core payments technology rather than merely speculative assets, and underscores Stripe’s conviction that stablecoin payment acceptance is a significant value driver for its business moving forward.
Bridge is crypto infrastructure company that builds technology to make using stablecoins and digital assets easier for businesses and developers. It provides APIs and tools that let companies send, receive, and settle payments in stablecoins across different blockchains, focusing on near-instant and low-cost international transfers.
Stripe is not alone in doubling down on this space. In May, Visa invested in BVNK, a provider of enterprise-grade infrastructure for stablecoin payments, shortly after the startup launched an embedded wallet that unifies fiat currencies and stablecoins on one single platform. Around the same time, Visa also announced a card-issuing product in partnership with Bridge, allowing cardholders to make purchases using stablecoin balances.
Mastercard has similarly expanded its stablecoin footprint, enabling stablecoin payments at 150 million partnering merchants through partnerships with platforms like Crypto.com, MetaMask, OKX, and Kraken.
Standard Chartered, meanwhile, is working on a HKD-backed stablecoin in partnership with Animoca and HKT, while Facebook’s parent company, Meta, is reportedly considering using stablecoins for payouts.
The stablecoin market has seen consistent growth. In August, total market capitalization reached a new all-time high of US$278 billion, according to crypto news outlet CoinDesk, marking the 23rd consecutive month of growth. On centralized exchanges, trading volume in stablecoin pairs hit US$2.47 trillion, an eight-month high.
Tether (USDT) continues to lead the market with a US$167 billion capitalization. The stablecoin accounts for for more than 80% of total stablecoin trading volume on centralized exchanges. Circle’s USD Coin (USDC) follows with a market capitalization of US$67.1 billion, and an 11.1% market share.
Corporate enthusiasm is fueling much of this surge, with companies like Walmart, and Expedia exploring their own stablecoins to streamline global payments, reduce processing fees, and lessen reliance on traditional financial infrastructure. Companies owned by Wall Street giants such as JP Morgan Chase, Bank of America, Citigroup, and Wells Fargo are also considering launching a joint stablecoin.
Favorable regulatory developments are further boosting the sector. The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) was signed into law on July 18, 2025, marking the country’s first major national cryptocurrency legislation. The bill aims to regulate the stablecoin market, creating a clearer framework for banks, companies and other entities to issue digital currencies.
Standard Chartered projects that the stablecoin market could grow nearly tenfold to US$2 trillion by 2028.
As stablecoins continue to transition into mainstream finance, Fintech News Singapore will be hosting a webinar discussing the drivers behind their adoption, potentials success factors, and their role in making payments faster, cheaper, and programmable.
Speakers will include Tianwei Liu, CEO & Co-Founder, StraitsX; Evy Theunis, Head of Digital Assets, Institutional Banking Group, DBS Bank; Sam Lin, COO, dtcpay; and Amy Zhang, Head of APAC, Fireblocks.
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