Stablecoins are rapidly outpacing traditional payments rails, emerging as a major payments layer expected to be worth trillions of dollars as institutions, governments, and businesses accelerate real-world adoption across the global financial infrastructure.
Regulatory transparency supports explosive growth in stablecoins, setting the trajectory for a multi-trillion dollar market
The cryptocurrency industry is witnessing what some have described as the fastest modernization of financial infrastructure in history. Reese Merrick, Ripple’s senior executive officer and managing director for the Middle East and Africa, shared a detailed assessment of stablecoin adoption acceleration, scale, and actual usage across global markets on social media platform X earlier this month.
Merrick elaborated on why stablecoin activity has become a central benchmark for the industry, writing:
In 2025, stablecoin trading volume has become one of the most widely cited metrics in the cryptocurrency industry. This is primarily because it outperforms traditional payment processors in terms of raw payment amounts.
He highlighted the pace of expansion, adding: “By the end of the year, transaction volume is expected to reach approximately $28-30 trillion (up 50-60% year-on-year).” This number highlights how stablecoins have evolved beyond crypto trading infrastructure to systems that process payment volumes comparable to, or even greater than, traditional financial rails.
read more: Ripple CEO identifies three stablecoin trends that will reshape traditional finance
He went on to outline how usage patterns have changed significantly across blockchain networks, explaining that “stablecoins now account for approximately 30% of all on-chain transaction activity (up from approximately 20-25% a year ago), with daily active users accessing more than 10 million addresses each day to transact with stablecoins.” Industry observers increasingly see these indicators as evidence that stablecoins are becoming the primary payment mechanism for cross-border remittances, institutional trading, and liquidity management. Its usefulness in instant payments and asset tokenization has also sparked interest from commercial banks and fintech companies seeking programmable alternatives to traditional cash systems.
Merrick also emphasized that adoption is spreading beyond crypto-native participants. “Institutions are starting to get serious, retail payments are starting to take off, governments are starting to regulate, and it’s crazy to think where this trajectory will take us in a few years,” he wrote.
Outlining the long-term significance, he concluded:
We are witnessing the fastest modernization of financial infrastructure in history.
As regulatory clarity increases through frameworks such as the US’s GENIUS Act and the European Union’s MiCA regime, stablecoins are increasingly positioned as a connectivity infrastructure for global finance. Market forecasts suggest that its capitalization could double or triple over the next few years, reaching trillions of dollars by the end of the decade, due to its stability, efficiency, and increased integration into mainstream financial and payment systems.
FAQ 🧭
- Why is stablecoin volume an important indicator for crypto investors?
Stablecoin payment volumes have surpassed traditional payment processors, signaling real-world adoption and positioning stablecoins as core financial infrastructure rather than speculative tools. - How fast is the stablecoin market growing? Why is it important?
Ripple executives say stablecoins are expected to reach $28 trillion to $30 trillion in circulation by the end of the year, growing 50% to 60% year over year, and are expanding faster than traditional payment rails, creating long-term benefits for infrastructure providers. - What does the increased usage of on-chain stablecoins indicate about demand?
Stablecoins currently account for approximately 30% of all on-chain transactions and more than 10 million daily active addresses, with demand expanding beyond transactions to payments, liquidity management, and cross-border remittances. - How will regulation impact stablecoin investment prospects?
Regulatory frameworks such as the US GENIUS Act and the EU MiCA reduce uncertainty and accelerate institutional adoption, supporting predictions that stablecoin market capitalization could reach trillions of dollars over the next decade.
