Stablecoins: The Financial Shakeup Surpassing Visa and Mastercard Combined

When Bank of America (BAC) launched its BankAmericard experiment in 1958, few could have predicted that this bank’s plastic rectangle would eventually process trillions in global transactions. 

The early years were rocky – by some accounts, the program was hemorrhaging millions. Yet, within a decade, the concept had spread nationwide. And by the 1990s, the network we now know as Visa (V) was facilitating over $1 trillion in annual volume. 

It’s a familiar pattern in financial innovation: what starts as a niche solution, often dismissed or misunderstood, gradually reveals its potential to rewire the entire system. Today, stablecoins – the blockchain-based tokens pegged to traditional currencies – are following a remarkably similar trajectory. 

Once confined to crypto trading desks, they processed an astounding $27.6 trillion in transaction volume in 2024, surpassing Visa and Mastercard (MA) combined, while their total circulation has climbed past $215 billion. 

Like those early credit card networks, which maintained the familiar concept of dollar-denominated transactions while remodeling the underlying rails, stablecoins are preserving the stability of traditional currency while fundamentally transforming how money moves through the global economy.

In other words, we’re in the early days of a financial revolution; and a major catalyst is set to throw it into overdrive within the next few months…

Why the Stage Is Set for a Stablecoin Surge

Most cryptocurrencies – like Bitcoin (BTC-USD), Ethereum (ETH-USD), Solana (SOL-USD), etc. – are volatile. Their prices swing up and down daily. That can be exciting for traders… but terrible if you just want to pay for coffee or send money to a friend.

Stablecoins fix that problem. Typically backed by cash or U.S. Treasuries held in reserve by the issuing company, they are designed to equate to $1 per coin. They’re similar, stable, and reliable.

But they’re also more convenient. Because stablecoins live on the blockchain, they move at the speed of the internet. Transfers are instant. Fees are minimal. They’re available 24/7, unlike our traditional banking systems.

And now the concept could be about to go mainstream. 

As we explained in a recent issue on the topic, the GENIUS Act – signed into law in July – and CLARITY Act – currently in the Senate – are establishing the new regulatory framework for stablecoins. It may not sound exciting, but this is the “green light” moment for mass adoption. 

For years, banks and corporations alike have been hesitant to delve into cryptocurrencies. They knew stablecoins were faster and cheaper, but they didn’t want to touch them without clear regulations. These acts fix that.

Clarity equals credibility. And credibility is exactly what’s been missing.

The CLARITY Act is expected to pass by late 2025 or early 2026. When it does, platforms issuing stablecoins will finally know which rules apply, who regulates them, and how to comply.

And adoption could happen fast once those rules are in place.

The Market Opportunity: $55 Trillion in Stablecoin Payments

The most obvious entry point is cross-border payments: a massive market with sky-high fees. Roughly $190 trillion moves across borders every year, with about $150 trillion processed through SWIFT, the decades-old global banking network that’s slow, expensive, and outdated.

Stablecoins are better in every way, like the financial equivalent of upgrading from a fax machine to fiber optic internet.

Last year, less than 1% of cross-border flows used stablecoins. But Bloomberg projects that number could reach 25% by 2030. That represents more than $55 trillion in annual flows moving onto stablecoin rails within just a few years.

Once businesses and consumers see how easy this is, usage won’t stop at cross-border transfers. Payroll, e-commerce, point-of-sale payments – everything is up for grabs.