Stablecoins Eclipse Visa with $46 Trillion in On-Chain Volume, Signaling a New Financial Era
Stablecoins have officially stepped into the financial spotlight, recording an astonishing $46 trillion in on-chain transaction volume over the past year—nearly three times the annual volume processed by payment giant Visa. This revelation, detailed in Andreessen Horowitz’s (a16z) 2025 “State of Crypto” report, marks a historic milestone in the evolution of blockchain-based finance.
Once considered a niche tool for cryptocurrency trading, stablecoins have matured into a formidable force in global financial infrastructure. The report emphasizes that they now serve as the backbone for a borderless, decentralized settlement system. Even after adjusting for non-organic transactions—bringing the total to around $9 trillion—the volume still overshadows the likes of traditional players such as PayPal, indicating a seismic shift in how value is exchanged across the globe.
In September 2025 alone, adjusted monthly stablecoin transaction volume reached a record-breaking $1.25 trillion. Notably, this surge occurred independently of broader crypto market activity, underscoring the growing real-world utility of stablecoins beyond speculative trading. Increasingly, they’re being used for remittances, cross-border business payments, and even payroll, reflecting a deeper integration into everyday financial operations.
The supply of stablecoins in circulation now exceeds $300 billion, with Tether (USDT) and USD Coin (USDC) dominating the market. Together, they account for 87% of all stablecoins issued. Ethereum and Tron continue to serve as the primary infrastructure for these transactions, collectively processing 64% of all adjusted volume as of September.
Beyond usage statistics, the macroeconomic implications are staggering. Over 1% of the total U.S. dollar supply now exists in the form of tokenized stablecoins distributed across public blockchains. This tokenization of fiat currency reflects a growing trust in blockchain-based finance and points to its increasing relevance in the traditional economic system.
Stablecoin issuers have also emerged as major financial players in their own right. Collectively, they hold more than $150 billion in U.S. Treasury securities, ranking them as the 17th largest holder globally. This not only signals their financial clout but also embeds them deeper into the global monetary ecosystem.
The a16z report positions 2025 as a pivotal year in the digital asset space, declaring it “the year the world came onchain.” This statement reflects a broader maturation of the crypto ecosystem, where user adoption, technological innovation, and financial integration are converging at scale.
Active participation in crypto has grown substantially, with monthly users now ranging from 40 to 70 million—an increase of around 10 million over the previous year. This rise is underpinned by dramatic improvements in blockchain scalability. Today, distributed networks are capable of handling over 3,400 transactions per second, a hundredfold increase compared to five years ago. This performance leap has enabled more complex applications and higher throughput, making everyday use cases more practical and efficient.
The increasing adoption of stablecoins is also driving innovation in decentralized finance (DeFi). With predictable value and high liquidity, these digital assets are powering lending protocols, yield farming strategies, and cross-chain liquidity pools. As a result, DeFi platforms are becoming more accessible to users who previously avoided volatile cryptocurrencies like Bitcoin and Ethereum.
Moreover, stablecoins are playing a critical role in bridging the gap between traditional finance (TradFi) and decentralized platforms. Financial institutions are beginning to explore stablecoin integration for faster settlements, reduced costs, and 24/7 operability—features that legacy systems struggle to match. Some banks are even piloting stablecoin-based payment rails to modernize their infrastructure.
Regulatory perspectives are also evolving. While many governments remain cautious, the undeniable growth in stablecoin usage is prompting a reevaluation of digital asset policies. Regulatory clarity, especially around reserve transparency and compliance, could further accelerate adoption and build institutional trust.
In emerging markets, stablecoins are becoming lifelines against inflation and currency instability. Citizens in countries facing economic turbulence are increasingly turning to USDC and USDT as safer stores of value and mediums of exchange compared to their local currencies. This trend highlights the transformative power of stablecoins in democratizing access to stable financial instruments.
Meanwhile, developers are working toward creating next-generation stablecoins—some backed by algorithmic mechanisms, others pegged to diversified baskets of assets. This wave of innovation aims to address current limitations, such as dependency on centralized issuers and vulnerability to regulatory intervention.
As the stablecoin ecosystem diversifies, competition is poised to intensify. New entrants are emerging with promises of greater transparency, improved scalability, and enhanced user experience. This competitive landscape could lead to the rise of region-specific or use-case-specific stablecoins optimized for different market needs.
In summary, the explosive growth of stablecoins marks a fundamental turning point in global finance. What began as a utility token for crypto traders has now evolved into a universal medium for digital settlement. With continued advancements in technology, infrastructure, and regulation, stablecoins are well on their way to redefining how money moves in a digitally connected world.