Stablecoins have been described as the future of cross-border payments. Compared to regular bank transactions, they are faster and reduce costly payment delays. Although government agencies and traditional finance institutions continue to debate their viability,
stablecoins are slowly becoming the modern alternative to traditional cross-border payments.
Earlier this year, Matt Hougan, Bitwise Asset Management’s chief investment officer, said that in the next five years, stablecoins will dominate the $44 trillion cross-border payment market, and there is enough reason to believe that.
The adoption of cryptocurrency in many countries has boosted the appeal of stablecoins. Many people use it not just for online shopping but also for entertainment, including gaming. For example, sites like
ValueWalk now share lists of no-account casinos, where many accept crypto payments and let players avoid long KYC checks.
These gaming platforms focus on making things quick and easy for players who want privacy and a hassle-free experience.
When stablecoins stormed the finance market, analysts saw it as an experiment. In 2020, the stablecoin market was worth $4 billion, and in the space of 5 years, stablecoins have driven change in the finance market. In January 2025, the total stablecoin supply
was
worth over $210 billion, with Tether (USDT) and Circle (USDC) as the largest issuers in circulation.
Analysts predict that by 2028, the total volume of stablecoin payments could hit $1 trillion. There are predictions that by 2030, 12% of the total cross-border payments will be made in stablecoins, and when the market eventually fully matures, it could hold
10% of the total U.S. money supply and 25% of the U.S. Treasury bill market.
Stablecoins are already winning on cross-border payments, and the market data support this statement. In February, the
stablecoin transaction volume was pegged at $625 billion, which is 21% more than the total stablecoin transactions in February 2024. In terms of payment volume, about $6.3 trillion of stablecoin payments were settled between February 2024 and 2025.
The data is just one part of the story, as financial institutions and crypto platforms have begun to adopt stablecoins for payments. Crypto and web3 companies such as Ripple, Paxos, Bitso Business, and Circle lent credence to the stablecoin industry by integrating
it into their financial payment structure. Large financial institutions such as Mastercard, JPMorgan Chase, and Visa have also joined the trend.
With global finance and crypto leaders adopting stablecoins, it is clear that stablecoins aren’t just an alternative but the future of cross-border payments. Stablecoins are bringing the disruption that the fintech industry has been promising for the past
two decades.
Similar to traditional finance solutions, stablecoins also come with their own challenges. Regulations are the biggest challenge, as not all countries have accepted and regulated stablecoin payments. Some banks also lack the technology and expertise to adopt
stablecoins.
However, with the current developments in the crypto and finance industry, it is becoming more evident that both governments and banks need to adapt to stablecoins or risk being left out. Governments need to implement regulations, like
the GENIUS Act, which was enacted in July.
Such regulations provide clarity for operators. Banks also should invest in staff training on the benefits of this technology because, in the next few years, stablecoins may become the backbone of all cross-border payments.
