Stablecoins Beat Visa Global Transaction Volume with Nearly $1 Trillion

The cryptocurrency sector has reached a milestone as stablecoins now process numbers higher than the Visa global transaction volume. According to Bitwise’s Q1 2025 market report, dollar-pegged cryptocurrencies settled 27.6 trillion$edgingoutVisa’s\; transaction\; volume\; of$26.9 trillion, and surpassed Mastercard by 7.7%.

This stunning reversal comes just five years after stablecoins handled barely 10% of Visa global transaction volume. The sector’s explosive 30% quarterly growth has been fueled by surging demand for dollar-denominated digital assets in cross-border commerce and decentralized finance.

How Stablecoins Caught Visa in Global Transaction Volume

Three key factors propelled this historic shift in Visa global transaction volume:

1. Enterprise Adoption – Major corporations now use stablecoins for B2B payments to avoid traditional banking delays

2. Emerging Market Demand – Countries facing currency instability increasingly rely on USDT and USDC

3. DeFi Expansion – Stablecoins power over 60% of all decentralized finance activity

Remarkably, stablecoins now rank among the top 15 holders of U.S. Treasuries, demonstrating their growing integration with traditional finance. Ethereum processes 95% of this Visa global transaction volume, with Tether (USDT) and Circle (USDC) dominating market share.

How Stablecoins Caught Visa in Global Transaction Volume

The stunning reversal in Visa global transaction volume dominance didn’t happen overnight. Stablecoins achieved this milestone through a perfect storm of technological advantages and market demand. Three key factors explain how digital assets surpassed the payment giant’s processing volume:

1. Enterprise Adoption – Major corporations now use stablecoins for B2B payments, avoiding traditional banking delays and high FX costs. Companies like Tesla and Microsoft have integrated stablecoin settlements for international suppliers.

2. Emerging Market Demand – Countries facing hyperinflation (Argentina, Turkey) and capital controls (Nigeria, Vietnam) increasingly rely on USDT and USDC for daily transactions and dollar access.

3. DeFi Expansion – Stablecoins now power over 60% of all decentralized finance activity, facilitating $12B+ in daily lending, trading and yield farming across Ethereum, Solana and emerging L2 networks.

The infrastructure supporting this growth has matured dramatically. Ethereum processes 95% of this Visa global transaction volume equivalent, while new entrants like PayPal’s PYUSD and Visa’s own stablecoin settlement systems demonstrate institutional confidence. Remarkably, stablecoin issuers now rank among the top 15 holders of U.S. Treasuries, holding more government debt than most mid-sized nations. This symbiotic relationship with traditional finance suggests the Visa global transaction volume competition is just beginning.

novation,” said Jack Forestell, Visa’s Chief Product Officer. “We’re bridging traditional finance with crypto’s efficiency.”

The Great Volume Debate: Understanding the True Nature of Stablecoin Transactions

While stablecoins surpassing Visa global transaction volume marks a significant milestone, financial analysts urge caution when interpreting these numbers. The data reveals complex nuances in how these volumes are generated:

• Market Dynamics: Kraken’s Dan Held notes that “a substantial portion of stablecoin activity represents exchange arbitrage rather than commercial transactions,” suggesting the volumes may overstate real economic activity.
• Payment Reality: Visa’s internal research indicates only 12% of stablecoin transfers constitute genuine consumer or merchant payments.
• Professional Dominance: Chainalysis reports show 68% of stablecoin volume originates from professional traders and institutional actors, not retail users.

However, the trend remains significant. Citigroup projects that as merchant adoption expands, stablecoins could process $5 trillion in Visa global transaction volume equivalents annually by 2028. This growth potential highlights the evolving role of stablecoins, even if current volumes don’t perfectly mirror traditional payment networks. The debate continues as regulators and economists work to develop more precise measurement frameworks.

The Future of Global Payments

The competition for Visa global transaction volume supremacy signals a broader transformation:

✓ Traditional Finance adopting crypto infrastructure
✓ Emerging Markets leapfrogging legacy banking
✓ Consumers gaining faster, cheaper alternatives

As Visa integrates stablecoins and blockchain firms court regulators, one truth emerges: the future of Visa global transaction volume may depend on who best blends old and new financial systems. Get the latest update on The Bit Gazette.