On December 12, 2025, the stablecoin market reached a pivotal milestone, totaling $310 billion in value. That marks a 70% year-over-year increase and underscores a shift in how digital assets are used globally. Stablecoins are designed to maintain price stability by anchoring to an underlying asset, typically the US dollar, which helps address cryptocurrency volatility and acts as a bridge between traditional finance and the decentralized economy.
The market is led by Tether’s USDT ($172B) and Circle’s USDC ($145B), together accounting for roughly 80% of global stablecoin activity. On many major exchanges, stablecoins account for about 80% of total trading volume, effectively becoming the default cash leg of the digital asset market. Beyond trading, stablecoins show transformative potential in cross-border payments by enabling near-instant settlement at a fraction of traditional costs.
Transfers using stablecoins can settle in minutes at costs well below traditional rails, with reports of reductions up to 95% in some remittances. In high-inflation economies such as Argentina and Venezuela, stablecoins are increasingly used as stores of value and a form of financial inclusion where banking access is limited. Institutional demand is rising, with studies showing nearly half of surveyed institutions using stablecoins operationally and 41% piloting implementations; regulators are shaping the space through MiCA and the GENIUS Act, pushing fiat-backed stablecoins to full reserves and regular audits to align crypto with traditional finance.
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