In a major shift for global finance, stablecoins have overtaken traditional card networks like Visa and Mastercard in onchain transaction volume, signaling their rapid evolution into the default settlement infrastructure for the internet.
From Niche to Mainstream: Stablecoins Reshape Digital Payments
Once seen as speculative crypto tools, stablecoins have grown into essential financial instruments, enabling cheap, fast, and borderless transactions. According to Alchemy, a leading Web3 infrastructure provider, the adoption of stablecoins is now “explosive” — and it’s transforming how value moves online.
Stablecoins surpassed Visa and Mastercard in onchain volume by over 7%, highlighting a turning point in digital payments.
Platforms such as PayPal, Stripe, and Robinhood are integrating stablecoins to enhance their payment systems, drawn by their efficiency, 24/7 availability, and programmability. These digital dollars are being used across everything from cross-border payments to decentralized prediction markets, such as Polymarket.
Why Stablecoins Are Winning
Stablecoins offer four critical advantages over traditional systems:
- Speed: Transactions settle in seconds, not days.
- Cost-efficiency: Lower fees compared to banks or credit cards.
- Global Reach: Borderless by default.
- Security: Enhanced through blockchain verification.
Furthermore, Tether (USDT) — the largest stablecoin — holds over $113 billion in U.S. Treasurys, more than entire countries like Germany. This makes stablecoins not only payment tools but also major institutional players in traditional finance.
“Tokenized money is the base of the tokenized financial system,” said an Alchemy executive, emphasizing their systemic importance.
Institutional Momentum: JP Morgan and the Rise of Tokenized Deposits
Institutions are no longer watching from the sidelines. JP Morgan’s Kinexys, a tokenized deposit offering, now enables yield-bearing, onchain deposits with real-time liquidity. It marks a new era of 24/7 banking on blockchain rails.
This trend reflects growing demand for enterprise-grade blockchain infrastructure, even as concerns persist around the fragmented nature of the current blockchain landscape. Developers and institutions alike face technical hurdles in ensuring reliable, secure, and interoperable services.
GENIUS Act Signals U.S. Support for Stablecoin Growth
The recent passage of the GENIUS Act in the U.S. Senate is set to bring regulatory clarity to the sector. The bill provides federal guardrails for stablecoins, giving both startups and traditional finance players a clear framework to innovate within.
This has boosted confidence among investors and developers, laying the groundwork for mainstream adoption of stablecoins in both retail and institutional markets.
Looking Ahead: Stablecoins and the Internet of Money
With continued infrastructure improvements, cross-chain interoperability, and regulatory support, stablecoins are well-positioned to become the invisible engine powering the next phase of internet commerce.
Despite pushback from institutions like the Bank for International Settlements, which questions their suitability as “true money,” stablecoins continue to demonstrate real-world utility far beyond speculative crypto trading.
Stablecoins are not just a trend — they are the foundation for a tokenized future of finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.