Stablecoins are no longer just a speculative tool in the crypto ecosystem — they’re rapidly evolving into a foundational layer for digital finance, especially in emerging markets. A groundbreaking new report titled Stablecoins: The Emerging Markets Story, jointly released by global payments leader Visa, Brevan Howard, and Castle Island Ventures, sheds light on how these digital assets are being used in real-world financial scenarios.
The study marks the first comprehensive effort to track actual stablecoin usage across key developing economies — Brazil, Nigeria, Turkey, Indonesia, and India — surveying 2,500 active users. What it reveals is a powerful shift: stablecoins are increasingly being adopted not for trading or speculation, but for practical, everyday financial needs.
Soaring Transaction Volumes Signal Mainstream Utility
In the first half of 2025 alone, stablecoin transaction volume reached an astonishing $2.6 trillion**, with projections estimating a full-year total of **$5.28 trillion — a significant leap from 2023’s $3.7 trillion. This surge isn’t driven by hype, but by real utility.
More than half of respondents — 57% — reported increasing their stablecoin usage over the past year. Even more telling, 72% expect to use them even more in the future, signaling strong confidence in their long-term role in personal finance.
This growing adoption reflects a broader trend: stablecoins are becoming the preferred medium for value transfer in regions where traditional banking infrastructure is unreliable or inaccessible.
Stablecoins as Financial Infrastructure in Emerging Economies
In countries like Nigeria and Turkey, where inflation erodes local currency value and capital controls restrict movement of money, stablecoins offer a lifeline. They enable individuals to preserve wealth, send remittances without high fees, and engage in global commerce with minimal friction.
For example:
- A freelancer in Jakarta can receive payments from a client in the U.S. within minutes, avoiding bank delays and costly intermediaries.
- A small business owner in Lagos can pay suppliers in Dubai using USDC without needing correspondent banking relationships.
- Families in Istanbul can receive remittances from abroad instantly, bypassing exchange rate markups and processing lags.
These aren't hypotheticals — they’re daily realities for millions now using stablecoins as part of their financial toolkit.
The report emphasizes that stablecoins are increasingly viewed not as speculative assets, but as digital cash — reliable, fast, and globally interoperable.
Dominance on Public Blockchains
One of the most striking findings is that 70% to 80% of all settlement value on public blockchains now flows through stablecoins. This dominance underscores their role as the backbone of decentralized finance (DeFi) and on-chain economic activity.
While volatile cryptocurrencies like Bitcoin and Ethereum see fluctuating trading volumes, stablecoin usage continues to rise steadily. Monthly active users have grown consistently, reaching record highs even during broader market downturns.
This decoupling from crypto market cycles suggests that stablecoin adoption is driven by real economic demand, not price speculation.
Why Are Stablecoins Gaining Traction?
Several key factors explain the accelerating adoption:
1. Cross-Border Remittances
Traditional remittance channels often charge 5–10% in fees. Stablecoins reduce that to less than 1%, with near-instant settlement.
2. Currency Stability
In high-inflation environments, holding local currency can mean losing purchasing power daily. Pegged digital assets like USDT or USDC provide a hedge.
3. Financial Inclusion
Over 1.4 billion adults remain unbanked globally. Stablecoins require only a smartphone and internet access — lowering barriers to entry.
4. Merchant Payments
An increasing number of merchants — from online retailers to local vendors — now accept stablecoins directly, especially in tech-forward urban centers.
👉 See how next-gen payment solutions are integrating stablecoins for faster, cheaper transactions.
From Niche Tool to Core Financial Layer
The Visa-backed report concludes that stablecoins have transitioned from niche instruments to core infrastructure within the digital economy. They’re no longer just used by crypto enthusiasts but by ordinary people managing real financial challenges.
Use cases now span:
- Peer-to-peer transfers
- Salary disbursements
- E-commerce payments
- Savings and wealth preservation
- Microtransactions and gig economy payouts
As regulatory clarity improves and integration with traditional payment rails expands, this trend is expected to accelerate further.
Frequently Asked Questions (FAQ)
Q: What exactly is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as the U.S. dollar, euro, or gold. Examples include USDT (Tether), USDC (USD Coin), and DAI.
Q: Are stablecoins safe to use?
A: Safety depends on transparency and backing. Reputable stablecoins undergo regular audits and hold reserves matching their circulating supply. Users should stick to well-established issuers with clear compliance practices.
Q: How do stablecoins help in countries with high inflation?
A: In economies where local currencies lose value quickly (e.g., Turkey, Argentina), stablecoins allow citizens to store savings in a more stable asset, protecting against rapid devaluation.
Q: Can I earn interest on stablecoins?
A: Yes. Many platforms offer yield-bearing accounts or DeFi protocols where users can lend their stablecoins and earn returns, often higher than traditional savings accounts.
Q: Is stablecoin usage legal everywhere?
A: Regulations vary by country. Some nations embrace them (e.g., Singapore, UAE), while others impose restrictions. Always check local laws before using or investing in stablecoins.
Q: How does this report impact the future of digital payments?
A: It validates that stablecoins are not a passing trend but a critical component of modern finance. Their integration into mainstream payment networks could redefine how money moves globally.
The Road Ahead: Bridging Digital and Traditional Finance
With major institutions like Visa actively researching and supporting stablecoin ecosystems, the bridge between traditional finance and digital assets is solidifying. The next phase will likely involve deeper integration with banking systems, regulated issuance, and wider merchant acceptance.
As technology evolves and trust grows, stablecoins may soon become as commonplace as digital wallets or contactless cards — especially in regions where financial innovation is not just convenient, but necessary.
👉 Explore how you can start using stablecoins securely and efficiently today.
The data is clear: stablecoins are here to stay. With 72% of users expecting increased usage and transaction volumes climbing steadily, they are no longer an alternative — they’re becoming the new normal in global finance.