Stablecoin payments exceed $5T amid FX fee challenges
Stablecoin payments have surpassed $5 trillion in 2025, marking a 47% surge since the 2024 U.S. election. New data from Visa and blockchain analytics firm Allium shows over one billion stablecoin transactions valued at $255 billion, driven by investor optimism, regulatory clarity, and corporate use cases. However, FX fees—spreads, conversion charges, intermediary costs, and slippage—continue to inflate the cost of cross-border payments.
Startups like BVNK, Thunes, and Aquanow are targeting underserved corridors, streamlining exotic routes such as Sri Lanka to Cambodia, and focusing on “last mile” on- and off-ramps. These firms highlight that while stablecoin payments aren’t always the cheapest, they offer faster, more capital-efficient transfers compared to traditional systems.
Regulatory developments in the U.S., including the GENIUS Act and proposed standards for 1:1 backing and regular audits, could boost stablecoin supply by $25–75 billion. Banks and payment giants like Visa are exploring fiat-backed tokens to bypass SWIFT and settle transactions in minutes. Ripple’s $200 million acquisition of Rail and Thunes’s $150 million funding round underscore growing institutional adoption. As regulation, infrastructure, and new use cases converge, stablecoin payments are poised for continued bullish expansion.
Bullish
The report that stablecoin payments have now exceeded $5 trillion underscores accelerating adoption and liquidity in the market. Despite persistent FX fees, regulatory progress—such as the GENIUS Act and USDC21 standards—could unlock an additional $25–75 billion in supply, mirroring the post-MiCA surge in European stablecoin issuance. Banks and payment leaders like Visa are integrating stablecoin rails, while Ripple’s acquisition of Rail and major funding rounds by startups indicate deepening institutional commitment. In the short term, traders may see increased volume and volatility around stablecoin on-ramps and off-ramps. Over the long term, enhanced transparency, 1:1 asset backing, and improved FX infrastructure are likely to strengthen market confidence and deepen liquidity pools. The combination of regulatory clarity, expanded corridors, and corporate buy-in supports a bullish outlook for stablecoin markets.