In a historic milestone for the cryptocurrency sector, stablecoins have surpassed Visa in annual transaction volume as of April 2025, signaling a major shift in the global payments landscape. Recent data shows stablecoins processed $12.3 trillion in transactions over the past year, narrowly outstripping Visa’s $11.8 trillion. This achievement highlights the growing embrace of digital currencies and their potential to challenge traditional payment giants like Visa and Mastercard. This article explores the implications for the crypto market, payment systems, and the broader economy.
Stablecoins Outshine Visa: The Data
Stablecoins, cryptocurrencies pegged to stable assets like the U.S. dollar, have seen remarkable growth. In 2024, their transaction volume surged by 85%, driven by adoption in cross-border payments, DeFi platforms, and everyday purchases. Tether’s USDT and Circle’s USDC dominate, holding over 90% of the stablecoin market. USDT accounted for $8.5 trillion in transactions, while USDC managed $2.9 trillion, boosting the total stablecoin market cap to $226 billion by April 2025, a 28% increase from 2024.
Visa, a leader in payments, has long excelled with its ability to handle 24,000 transactions per second (TPS). However, stablecoins have leveraged blockchain technology to close the gap. Innovations like the Lightning Network for Bitcoin and the Raiden Network for Ethereum enable stablecoins to process transactions in milliseconds, with some networks achieving millions of TPS, far exceeding Visa’s capacity.
Factors Behind Stablecoins’ Rise
Stablecoins have overtaken Visa due to several advantages. First, their low fees make them ideal for cross-border payments, where Visa charges 2-3% per transaction. Operating on blockchains like Ethereum, Solana, and Polygon, stablecoins keep fees below 1%, saving billions annually. For example, a $10,000 USDC transfer on Solana costs under $0.10, compared to $200-$300 via Visa’s global network.
Second, stablecoins are highly accessible. Unlike Visa, which requires a bank account or credit, stablecoins need only a smartphone and internet, empowering the unbanked in regions like Latin America and Africa, where adoption is skyrocketing. Companies like Bridge, which raised $58 million for stablecoin remittances, partner with platforms like Bitso to serve millions in emerging markets.
Third, stablecoins are central to DeFi, powering lending, borrowing, and trading on platforms like Aave and Uniswap. With $300 billion in total value locked (TVL) across DeFi protocols by April 2025, this activity drives stablecoin demand, fueling transaction growth.
The Future of Payments
Stablecoins surpassing Visa suggests a broader transformation. Analysts predict stablecoins could handle 30% of digital payments by 2030, up from 12% today. Traditional players are adapting—Visa has collaborated with Circle to integrate USDC, and World Network is reportedly in talks with Visa for stablecoin payments using Worldcoin’s biometric system.
Challenges remain, however. Regulators like the SEC and ESMA warn that stablecoins could pose risks to financial stability, particularly over USDT’s reserve transparency. Compared to Visa’s robust fraud protections, stablecoins face hurdles in building consumer trust.
Conclusion
Stablecoins topping Visa in 2025 marks a pivotal moment for digital payments, showcasing blockchain’s potential. As they expand in DeFi and remittances, stablecoins are reshaping global transactions. Regulatory and trust issues will shape their future, but for now, the crypto market celebrates a landmark victory.
