In a sign of how far blockchain-based finance has come, stablecoins and crypto debit cards are rapidly transforming how people transact—both online and at the checkout counter. From surpassing Visa and Mastercard in on-chain volume to outpacing traditional banks in micro-payments, the growth of digital asset payments is no longer speculative—it's structural.
According to recent data from blockchain infrastructure firm Alchemy, stablecoins have overtaken traditional card networks in terms of on-chain transaction volume, surpassing Visa and Mastercard by about 7%. These dollar-pegged digital assets are now becoming the default settlement rail of the internet.
“The adoption has been explosive,” said Noam Hurwitz, head of engineering at Alchemy. The appeal is clear: instant, borderless transfers that clear 24/7 for a fraction of a cent. By contrast, legacy card networks remain burdened by settlement delays, geographic restrictions, and higher fees.
Even mainstream players like PayPal, Stripe, and Visa have begun integrating stablecoin rails to streamline settlement, using platforms like Alchemy to abstract away the blockchain complexity behind user-friendly interfaces.
This surge in stablecoin usage is also reshaping global capital flows. Tether (USDT), the largest stablecoin issuer, earned around $13 billion in profit last year and now holds an estimated $113 billion in U.S. Treasurys—more than even Germany’s sovereign holdings. These reserves serve as the backbone of the growing tokenized finance stack, adding credibility and liquidity to the ecosystem.
Momentum further accelerated on June 17 when the U.S. Senate passed the bipartisan GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), which would create a federal licensing framework for stablecoin issuers. Legal experts expect the bill to become law by year-end, clearing the way for mainstream financial institutions to deepen their involvement.
Legacy finance isn’t standing still. J.P. Morgan’s blockchain division Kinexys is piloting a USD deposit token (JPMD) on Coinbase’s Layer-2 Base network, offering features like interest-bearing balances and real-time liquidity for corporate clients. The initiative positions bank-issued tokens as potential “superior” alternatives to traditional stablecoins—at least for institutions.
Despite rapid adoption, challenges remain. The stablecoin market is still fragmented across multiple chains, making it hard for enterprises to assess network reliability, liquidity depth, and counterparty risk. Hurwitz argues the next evolution will come from custom Layer-2 chains, purpose-built for individual platforms but interoperable through cross-chain bridges.
Skepticism also lingers in traditional quarters. The Bank for International Settlements (BIS) recently criticized stablecoins in its 2025 Annual Economic Report, saying they lack the foundational traits of “real money.” Instead, the BIS favors central bank digital currencies (CBDCs) and tokenized bank deposits as more stable pillars of digital finance.
In parallel with stablecoin growth, crypto debit cards are making serious inroads across Europe, particularly in micro-transactions and online shopping.
According to a 2025 report by London-based exchange CEX.IO, 45% of all crypto-linked card transactions in Europe are for amounts under €10, rivaling the traditional dominance of cash and bank debit cards at kiosks, cafés, and local shops.
The shift coincides with a 15% year-to-date increase in new CEX.IO card issuances, signaling that Europeans are embracing the convenience of spending stablecoins and major crypto assets like they would any other payment method.
The trend extends beyond street-level spending. While 21% of euro-area card transactions are remote, 40% of CEX.IO card payments are conducted online, highlighting crypto's growing role in e-commerce. This aligns with data from Crypto.com and Oobit, which report heavy usage on platforms like airline websites, app stores, and online retailers.
June 2025, Cryptoniteuae