90% of institutional players have been using or exploring the usage of stablecoins in their operations, says the report from Fireblock. Stablecoin has been the centre of attraction of the market and remains the most traded.
Fireblock sampled 295 institutions, traditional banks and financial institutions, total 49% of which said they have already used stablecoins for their payment operations.
It is worth noting that around 23% of them are in pilot phase yet nearly 18% are at primary stage and in ideation phase.
However the report further quotes that, 10% of institutions are still uncertain about whether to use or not.
Several other reports quote that stablecoin circulation has surged significantly in the past 52 weeks, and USDT and USDC have minted tokens worth billions of dollars.
The report quotes, “ With EURI, we’re not just launching one of the first MiCA-compliant stablecoins; we’re setting a new standard for the region. As the first European bank to issue a regulated e-money token, we’re bridging traditional finance and Web3. EURI is a tool that brings utility such as faster cross-border payments, smart escrow solutions, and seamless transactions across tokenized platforms.”
Stablecoins are now leading the market in terms of trading volume
Over the past few years, crypto has gained massive traction globally, but its legalization rate remains slow, which is one of the primary reasons behind stablecoins’ surge in circulation.
Many nations don’t permit direct purchase of crypto from their traditional and to buy crypto users use stablecoins, first buying them from fiat currency and then later used to direct crypto like Bitcoin, Ethereum, Doge and Shiba Inu.
Stablecoin transfer volumes surpassed Visa and Mastercard combined transaction volumes by 7.68% in 2024, reaching $27.6 trillion. Recent data shows that stablecoins are becoming more and more dominant, with transaction volumes reaching $1.82 trillion in a single month.
On centralized exchanges, stablecoins such as Tether and USD Coin; USDT alone accounts for more than 75% of the market share of CEX trading volume. Their extensive use as a link between fiat and cryptocurrency assets is mostly to blame for this.
Since they account for 45% of the liquidity on decentralized exchanges, stablecoins are essential to DeFi , adoption has also been aided by its ability to provide quick and inexpensive cross-border transactions, especially in areas with volatile currencies.
In 2024, Solana surpassed Ethereum and Tron as the most popular stablecoin transfer blockchain, with 73% of its stablecoin supply linked to USDC. Solana’s expansion in the DeFi and dApp ecosystems is consistent with this change.
Although it still led, USDT’s domination of trading volume on CEXs decreased marginally to 75.7%, while USDC and First Digital USD gained ground at 13.6% and 10%, respectively.
