In the bustling halls of Consensus Toronto on May 15, 2025, industry leaders, policymakers, and crypto enthusiasts converge to dissect the latest in blockchain, bitcoin, and beyond. Amid this fervor, stablecoins—a once niche innovation now at the heart of digital finance—are under the spotlight, as experts delve into their origins, evolution, and regulatory landscape.
The Stablecoin Surge
Stablecoins, digital tokens pegged to traditional currencies or commodities, have rapidly transformed the digital asset ecosystem. Harvey Li of Tokenization Insights highlights this seismic shift, likening stablecoins to email’s impact on the internet. “Stablecoins have become blockchain’s first killer app,” Li asserts, noting their role in enabling cost-effective global value transfer.
Since Tether’s debut in 2015, stablecoins have grown from a tool for crypto traders to a cornerstone of digital finance. Their utility spans beyond trading to encompass cash management, payments, and even real-world asset tokenization. According to Visa, stablecoin transaction volumes reached a staggering $5.5 trillion in 2024, underscoring their critical role in the market. This trend is further exemplified by initiatives like Visa and Baanx’s launch of USDC stablecoin payment cards, which integrate stablecoins into everyday transactions.
Trading and Beyond
The initial appeal of stablecoins lay in their stability amidst crypto market volatility. Today, they anchor over $30 trillion in annual trading volume, supporting both centralized and decentralized exchanges. Platforms like Uniswap and PancakeSwap regularly report monthly volumes in the hundreds of billions, fueled by stablecoin liquidity.
Beyond trading, stablecoins are revolutionizing the tokenization of real-world assets (RWAs). The burgeoning on-chain U.S. Treasury market exemplifies this, offering crypto investors exposure to low-risk yields with unmatched flexibility. As BlackRock and others enter this space, the potential for stablecoins to reshape traditional finance grows.
Cross-Border Payments Revolution
Stablecoins are also making waves in cross-border payments, a domain long plagued by inefficiencies. With instant, low-cost transfers, stablecoins offer a compelling alternative to the antiquated correspondent banking system. Research from a16z highlights their efficiency, with transactions 99.99% cheaper and faster than traditional methods.
This shift is gaining traction in the West, as evidenced by Stripe’s acquisition of Bridge and PayPal’s innovations with PYUSD. The adoption of stablecoins for retail payments is no longer a distant possibility; it’s a burgeoning reality. In line with this, Mesh’s addition of Apple Pay to enable crypto spending settled in stablecoins marks another step towards mainstream acceptance.
Regulatory Winds in Europe
Trevor Koverko of Sapien sheds light on the regulatory landscape in Europe, where stablecoins are gaining traction under the Markets in Crypto-Assets (MiCA) regulation. By providing a clear legal framework, MiCA aims to bolster stability and investor confidence, albeit at the cost of market competition.
Europe’s approach could position it as a stablecoin hub, though challenges remain. Koverko notes, “Europe’s regulatory clarity is appealing, but it must navigate complex licensing processes and adapt to the rapid pace of crypto innovation.”
The Road Ahead
As stablecoins cement their role in the financial ecosystem, questions linger about their future trajectory. Will regulatory frameworks stifle innovation, or will they pave the way for wider adoption? Can Europe harness its regulatory advantage to become a global leader in stablecoin innovation?
In the dynamic world of digital finance, stablecoins appear poised for continued growth and influence. Their journey from niche tools to financial mainstays illustrates the transformative power of blockchain technology—one that industry leaders and policymakers will further explore in the coming months and years.
Source
This article is based on: Crypto for Advisors: Stablecoins Explained
Further Reading
Deepen your understanding with these related articles:
- Ripple Offered $4B-$5B for Stablecoin Issuer Circle: Bloomberg
- SEC Ditches PayPal’s PYUSD Probe, Removing Key Regulatory Hurdle for Its Stablecoin
- World Liberty’s Stablecoin Will Be Used to Close MGX’s $2B Binance Investment: Eric Trump
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
