A new report from Visa and Allium reveals that stablecoin transactions have surpassed $5 trillion across one billion payments this year. The total value of stablecoins in circulation has grown by 47% since the U.S. election in November 2024, now valued at $255 billion. This growth is attributed to investor excitement, greater regulatory clarity, and new corporate applications.
While stablecoins have proven to be a faster and cheaper alternative to traditional payment systems, especially for cross-border transactions, they have yet to fully solve the issue of foreign exchange (FX) costs. According to Mike Robertson, CEO of AbbeyCross, the assumption that technology can eliminate these costs is naive, as banks and payment providers often generate revenue from FX spreads and fees rather than transaction charges.
Despite this, several startups are focusing on using stablecoins to improve cross-border payments. London-based BVNK, for example, is targeting "exotic" routes with multiple intermediaries to make transfers faster and more capital-efficient. Other companies like Thunes and Aquanow are working to connect blockchain transactions with "last mile" local currency and wallet provisions.
The industry's future is heavily influenced by regulatory developments, particularly the GENIUS Act in the U.S., which was signed into law in July 2025. This legislation aims to provide federal assurance for stablecoins by requiring them to be fully backed 1:1 with high-quality assets and to undergo regular audits. In response, banks and companies are adapting quickly. Bank of America projects a significant increase in stablecoin supply, and Visa is exploring the use of "stablecoin sandwiches" to bypass traditional networks like SWIFT. Additionally, firms like Ripple and Thunes are making strategic acquisitions and raising funds to deepen their integration with stablecoin networks.
August 2025, Cryptoniteuae