Stablecoin’s path to 2025: Key growth drivers and TradFi integration

The following is a guest post from Uldis Tēraudkalns, Chief Revenue Officer at Paybis.

The stablecoin market supports the general trend: today, its total market cap surpassed $225 billion. Data from DefilLama shows a jump from under $140 billion at the end of 2023, while another jump of over $25 billion followed Donald Trump’s President-elect win in November. 

Payment Industry’s Big Bet on Stablecoins

Global businesses are embracing stablecoin payments at a growing rate. According to VISA reports, the total transaction volume using stablecoins has exceeded $4.7 trillion in the past 30 days. Major moves, like Stripe’s acquisition of stablecoin platform Bridge, are accelerating this trend, while analysts project that the stablecoin market cap might reach $400 billion in 2025.

On-chain data shows that stablecoins are becoming the go-to choice for many, challenging traditional funding methods. This surge isn’t random. Specific drivers have impacted the sector and its place in global finance, while there are still several pro-crypto scenarios yet to play out across the industry, revealing a roadmap to 2025.

What Drives Stablecoin Adoption in 2025?

Four key factors could supercharge stablecoin adoption. First, the US is on the verge of creating a stablecoin law that could build trust and draw in more investors. At the same time, payment and remittance tools are embracing stablecoins, bringing them into everyday use.

Third, global trade is starting to embrace stablecoins, too, moving toward faster and cheaper digital transfers. A few countries are exploring national Bitcoin reserves, and several altcoins are waiting for ETF approvals. With time, as these initiatives develop, the demand for stablecoins will likely increase as users use them to buy and swap other assets.

Fourth, infrastructure improvements, such as the development of Layer-2 protocols, help introduce more scalable, fast, and low-cost transactions, creating new opportunities for innovators and a better user experience in general.

Stablecoins emerge as safe-haven in high risk regions

Stablecoins lower the risk of traditional funding methods and offer better transparency in transactions. More and more investors — especially in underdeveloped or developing regions — are seeing them as a stable store of value that supports digital transactions across borders, as well as a tool to hedge against volatility. 

As banks consider issuing stablecoins to stay competitive, investors get new opportunities to back projects that follow broader financial trends. The curiosity nation states and central banks show for exploring strategic Bitcoin highlights the shift. And lastly, in the Eurodollar market, stablecoins emerge as a handy, efficient tool to manage cash flow and currency risks for companies, governments, and individuals.

A Shift in Financial Policies and Infrastructure

To date, countries like Bhutan and El Salvador have enjoyed substantial returns from strategic Bitcoin reserves, and over 20 US states are looking to establish their own reserve pools. With inflation concerns on the rise, a strategic shift in national digital asset policies is likely — the precedent could inspire other nations to follow and give more momentum to the stablecoin adoption.

Retail self-custody wallets are expected to adopt a payment-for-order flow model similar to TradFi practices. At the same time, banks find themselves in a new competitive race: scrambling to stay relevant in a financial ecosystem that grows more digital and decentralized, many plan to issue their own stablecoins by late 2025.

Political appointments, such as President-elect Trump’s choice of Howard Lutnick as Secretary of Commerce, create another layer of interest and show that both the public and private sectors are ready to rethink finance.

Regulation’s Part 

The EU’s Markets in Crypto Assets (MiCA) regulation has already set the pace for the stablecoin ecosystem. Although MiCA has its critics, the legislation creates a clear and standardized framework for issuers. 

This regulatory clarity creates a more stable environment, encouraging more players to enter the market. As similar measures emerge across the US, transparent rules are helping reduce risks and build trust, leading to more predictable market behavior for both investors and users.

Stablecoins and the Future of Global Finance

The rise in stablecoin market cap and the spike linked to political events point to a broader transformation. The adoption of stablecoins is not a passing phase: the market now includes large-scale investments from major corporations, banks, and fintech players, driving toward a faster, cheaper, and more transparent financial system.

Improved technology, enhanced product offerings, and stronger regulation will continue to drive this change, with Fortune 500 companies preparing to offer crypto options and tech companies showing an increasing appetite for risk. These developments point to a future where stablecoin transactions become the norm.

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