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.
How to Invest In This Boom
Here’s the best part: you don’t need to buy a single stablecoin to benefit from this trend (though, of course, that’s an option, too). There are multiple ways to play it:
- Issuers: Companies like Circle (CRCL) and Tether (USDT-USD) mint the stablecoins. Their revenues scale with adoption because they earn money on the reserves backing their coins.
- Payment Rails: Ethereum, Solana, Avalanche (AVAX-USD), and Stellar (XLM-USD) are the blockchains that process stablecoin transactions. The more stablecoin traffic, the more fees these networks collect.
- Decentralized Finance (DeFi) Platforms
Stablecoins are the backbone of decentralized finance. Every lending, borrowing, and trading app uses them. As adoption grows, volumes on these platforms will explode. - Interoperability Protocols: Stablecoins won’t live on just one chain. They’ll need bridges to move across networks. Companies building this ‘plumbing’ will become indispensable.
- Wallets & Apps: At the consumer level, wallets are the on-ramps. Whoever owns the user experience will capture sticky, long-term customers – and the fees that come with them.
This isn’t about betting on a single coin or company. It’s about recognizing that an entire stack of businesses – from issuers to apps – is about to scale in lockstep.
The Bottom Line: Stablecoins as the Backbone of Crypto Finance
Stablecoins aren’t flashy or volatile. They don’t grab headlines like Bitcoin.
But sometimes, the ‘boring’ innovations are the most powerful…
The U.S. dollar is boring, too – yet, it’s the backbone of the global economy. And stablecoins are about to supercharge it with blockchain technology. Faster. Cheaper. Always on.
And with regulatory clarity on the horizon, stablecoins could be on the cusp of their breakout moment. Investors who position themselves now – before adoption goes mainstream – could be looking at one of the most attractive growth opportunities of the decade.
Stablecoins clearly show us how transforming the financial “rails” can quietly flip the system on its head. But payments aren’t the only corner of the economy being rewired…
Over at Tesla (TSLA), Optimus is setting off another hidden boom – not just in the robot itself, but in the critical suppliers making the sensors, servos, and chips that bring it to life.
The last time we saw this kind of supply-chain gold rush was with the iPhone. Now a handful of little-known companies could ride Tesla’s robotics push into their own trillion-dollar future; and prescient investors are already lining up.
Find out the name of the supplier that could go vertical as Optimus scales.
