Stablecoins: A Year in Review

Key Takeaways: In 2025, the stablecoin market cap surpassed $300 billion and moved $50 trillion in total transaction volume, signaling the asset class has crossed the line from niche utility to established financial infrastructure. With the U.S. GENIUS Act signed into law and global standards like MiCAR taking hold, adoption has rapidly expanded beyond crypto markets into major payment networks, banks, and corporate treasuries. As this regulatory clarity integrates digital currency with the mainstream economy, BitGo is powering the essential institutional layer, providing the secure, compliant infrastructure required to launch these assets at scale.

Introduction

Stablecoins began as a liquidity tool inside the crypto ecosystem. In 2025 stablecoins moved $50 trillion in total transactions and have reshaped how value moves across borders and between institutions. With regulated frameworks emerging and traditional finance building on stablecoin rails, the asset class has crossed the line from niche to institutional.

The Year in Data

In 2025, the stablecoin market cap surpassed $310 billion, a 54% rise into the end of 2025. Active on-chain users climbed from roughly 19.6 million to 30 million, while monthly stablecoin transfer volume grew over 115% to more than $4 trillion.

The stablecoin market has expanded 6,250% since 2020, a reflection of true adoption, suggesting that they are not simply a part of a hype cycle, but are exhibiting sustained adoption. Stablecoins have become a fixture of digital liquidity, useful in both bull and bear markets for traders, speculators, or users seeking currency stability. As banks get more involved, stablecoins are quickly becoming foundational to the next-generation of financial infrastructure.

TradFi Adoption

Source: A16Z 

Traditional finance made real progress with stablecoins this year with some of the largest names in the industry starting their foray into the digital currencies. While payment processors appear to be taking the lead with stables, financial institutions like BlackRock, JPMorgan, and Fidelity are increasingly embracing digital dollar alternatives like tokenized deposits and money market funds. 

Bain & Company notes that they are now “moving toward the financial mainstream.” In fact, stablecoins now generate more on chain transaction volume than any other crypto use case. That shift reflects growing demand from payment networks, fintechs, and corporates for faster, programmable settlement.

Mastercard and Fiserv are rolling out stablecoin-based merchant payments, bringing blockchain-settled dollars into traditional commerce to their vast networks of users. Ripple entered the market through a $200 million acquisition of a stablecoin platform. Zelle, a $1T payment processor network also announced a stablecoin integration this year. 

Source: Citibank

Ten major banks are now exploring issuing stablecoins pegged to G7 currencies. Citibank even published a report this year projecting a $1.9T stablecoin market capitalization by 2030 as their base case for the market’s growth over the next 5 years. 

Bank-issued stablecoins also signal a shift in how traditional institutions compete and collaborate in digital finance. If more banks issue their own tokens, stablecoins could function as interoperable cash instruments across institutions, improving settlement efficiency and increasing interbank competition, which may ultimately benefit consumers through better services and lower costs.

From tokenized deposits and money market funds to proprietary stablecoins issued over private banking blockchains, big banks and Wall Street appear to be embracing digital dollars at an accelerated pace with 2025 emerging as a potential tipping point for adoption. 

Regulatory Maturation

Regulation is also starting to catch up with the digital revolution. In the United States, the GENIUS Act has been signed into law, with rulemaking now underway to establish clear reserve and disclosure requirements for stablecoin issuers. The CLARITY Act, still moving through Congress, outlines a broader framework for digital asset custody and market structure, aiming to define how institutions can safely hold and manage tokenized assets within existing regulatory systems. 

Across the Atlantic, the EU’s MiCAR framework codifies similar standards for custodians and payment service providers. Together, these developments signal a decisive step toward legitimacy and global regulatory alignment. KPMG’s latest report highlights a global convergence: the FATF, UK FCA, and Singapore’s MAS are moving toward unified rules for stablecoin issuance and oversight. 

Even macroeconomists are taking note. Research shows that stablecoin issuers’ Treasury holdings are now large enough to affect short-term yields, underscoring their systemic importance. Treasury Secretary Scott Bessent has also highlighted stablecoins as a tool for strengthening global demand for U.S. Treasuries, a signal that policymakers increasingly view digital dollars as strategically important to the broader financial system.

Institutional Usage Requires Institutional-Grade Protections

With corporates, fintechs, and payment providers holding stablecoins on balance sheets, the question is no longer if institutions will engage, but how they can do so safely and securely. Stablecoins offer fast, frictionless movement of value, but that same speed can benefit malicious actors if safeguards are weak. 

Security is top of mind for most digital asset clients. Proper infrastructure, including segregated accounts, cold storage, compliance workflows, policy controls, and real-time auditing, has become essential for managing operational risk and maintaining trust at scale.

Preparing for 2026 and Beyond

Stablecoins have reached mainstream adoption, and 2026 is poised to be a pivotal year as regulatory clarity takes hold in major markets. With defined rules for reserves and custody, institutions can now integrate stablecoins directly into treasury, settlement, and global payment operations. As banks issue fiat-backed tokens and asset managers move products on-chain, the industry focus is shifting from experimentation to scaling trusted, compliant systems.

BitGo provides the foundation to launch and manage these assets responsibly. By offering secure multi-chain custody, proof-of-reserve tools, and on-chain compliance capabilities, custodians like BitGo serve as the backbone of the stablecoin ecosystem. The institutions building on this secure framework today will be the ones shaping how digital dollars move in 2026.

Through Stablecoin-as-a-Service, BitGo helps banks, fintechs, and corporations issue and manage tokens under a GENIUS-ready framework that integrates seamlessly with existing treasury and settlement systems. As stablecoins evolve into programmable financial infrastructure, BitGo continues to bridge traditional finance and the digital asset economy.

FAQ

Why are banks and corporates adopting stablecoins?

Stablecoins provide faster, cheaper settlement while maintaining price stability. For banks and corporates, they unlock near-instant payments, improved cash management, and cross-border efficiency within a regulatory structure that mirrors traditional finance. Growing retail demand for digital dollars has also been a strong force shaping the pace of adoption. 

Why do corporates find stablecoins useful?

Stablecoins allow firms to manage global cash positions more efficiently, settle invoices faster, and reduce costs associated with international transfers. They also support automated cash flows and real-time treasury visibility. As more retail users transact in stablecoins, it benefits corporations to open up stablecoins as a means of payment.

What makes regulation like the GENIUS Act and MiCAR important?

These frameworks establish clear rules for reserve management, redemption rights, and supervision, giving both issuers and users the confidence that stablecoins are transparent, compliant, and redeemable at par.

What are institutions hoping to see next in the stablecoin market?

Banks and payment providers are looking for consistent global standards, more interoperability between public and private blockchains, and clearer guidelines for accounting, tax, and reporting. Many institutions will rely on real-time reserve attestations, programmable payment capabilities, and standardized APIs that allow stablecoins to fit directly into existing financial infrastructure.

How does BitGo fit into this ecosystem?

BitGo provides the custody and compliance layer that underpins institutional stablecoin use, securing reserves, enabling proof of solvency, and connecting stablecoins to traditional settlement networks through regulated infrastructure.