In 2025, cryptocurrency has firmly established its place in the cultural landscape, with Bitcoin’s price now on par with major stock market players such as Tesla and Nvidia. The intersection of traditional finance and emerging technology has become increasingly evident, particularly with the rise of stablecoins. Once considered a niche aspect of the crypto world, stablecoins are now gaining visibility as they integrate seamlessly with established financial systems, demonstrating their potential to function similarly to traditional currencies.
Stablecoins, which are pegged to fiat currencies, are capable of fulfilling various roles traditionally associated with money. They have carved out a significant niche in the financial ecosystem, facilitating everything from bank integrations to remittance services. Unlike the more speculative aspects of cryptocurrency, such as memecoins and Bitcoin, stablecoins represent a stable, practical application of blockchain technology, actively collaborating with existing financial infrastructures. In 2024, global transactions involving stablecoins exceeded $27.6 trillion, and as of 2025, their market capitalization has reached approximately $238 billion—an impressive feat that has largely gone unnoticed by the wider public.
The surge in demand for stablecoins has been significantly driven by major private banks. Back in 2019, JPMorgan developed the JPM Coin to streamline transactions between institutions. As interbank transactions grow, now averaging $1 billion in stablecoin transactions daily, regulatory measures have become necessary.
European Union Takes the Lead in Regulation
The European Union has taken the initiative in regulating stablecoins, implementing the Markets in Crypto-Assets Regulation (MiCA) at the end of 2024. This comprehensive regulatory framework emphasizes consumer protection and anti-money laundering measures. The EU’s approach has allowed stablecoins to permeate everyday life, effectively acting as a Trojan horse for cryptocurrency adoption among the general populace. Trust in this regulatory framework, coupled with detailed user guidance from the European Banking Authority, has fostered stability in the market. This stability is evident in the uptick of EURC stablecoin transactions, which rose from $7 million to $21 million between December and January 2025. The demand for stablecoins, especially in Europe, is increasingly evident as cross-border transactions and remittances become vital in a world characterized by greater mobility and migration.
The United States’ Complex Journey
In the United States, the journey for stablecoins to gain traction has been more complex. While JPMorgan was an early adopter for interbank payments, regulatory challenges hindered broader adoption. Under Gary Gensler’s leadership, the U.S. crypto landscape was marked by skepticism, with Gensler questioning the legitimacy of cryptocurrencies as a viable form of currency. However, since Donald Trump assumed the presidency in 2025, the pace of regulatory evolution has accelerated dramatically, highlighted by the introduction of the GENIUS Act. This legislation clarifies the legal status of stablecoins for both issuers and users, establishing a framework for their use in society.
The Commodity Futures Trading Commission (CFTC) has been designated as the primary regulator for digital commodities and payment stablecoins, reinforcing their legitimacy within the traditional financial system in the U.S. While the U.S. is still catching up to the EU in terms of regulatory clarity, the implications of robust regulations could significantly impact the global market. As the euro gains recognition, the dollar remains a dominant force, and stablecoins will enhance the dollar’s influence further.
With clearer regulations in place, both institutional and consumer adoption of stablecoins is expected to skyrocket. Standard Chartered, a leading bank in the UK, forecasts that the GENIUS Act will catalyze an increase in stablecoin supply, projecting it to rise from $230 billion to $2 trillion by the end of 2028. A significant development in traditional finance is the expected transfer of $1.2 trillion in U.S. treasuries to stablecoin issuers like Tether and Circle by 2030. This shift represents a notable entry of cryptocurrency into the mainstream finance sector, positioning it to hold a larger share of U.S. treasuries than other major economies such as China, Japan, and the UK within just five years.
As the GENIUS Act and MiCA gain traction, and as institutional players drive stablecoin transactions, it’s likely that a substantial portion of global fiat capital flows will be represented in stablecoins. Raj Dhamodharan, Mastercard’s Vice President of blockchain and digital assets, recently emphasized that most individuals may be unaware that they are using stablecoins, as the necessary digital infrastructure for crypto adoption is already being established. The physical currency that supports the numbers displayed on banking apps could soon be linked to digital versions of the dollar or euro, without the public even realizing it. While this transformation may appear unconventional, it is simply a reflection of the banking sector adapting to meet consumer demands, and although the shift may occur quietly, its repercussions will be profound in the years to come.
