Stablecoins vs Traditional Payments: Visa Left Behind as On-Chain Dollars Explode

Introduction

Stablecoins are rapidly emerging as a serious competitor to traditional payment networks like Visa. Over the past month, the 30-day average stablecoin transaction volume has quietly surpassed Visa’s, signaling growing adoption of crypto payments and on-chain dollars. Capital is flowing back into the crypto market at scale, with issuers like Circle and Tether minting more than $14 billion in fresh stablecoins since the recent market downturn, including a single $750 million USDC mint by Circle in just a few hours. This surge underscores stablecoins’ role as key liquidity rails in the broader digital asset and DeFi ecosystem.

Institutional interest is also rising, especially around Real-World Assets (RWAs). Standard Chartered projects the RWA market could reach $2 trillion by 2028, with stablecoins as a major driver. Tokenized exposure to money market funds, equities, and income-producing real estate is expected to accelerate this trend, even as regulators remain cautious about DeFi’s deeper integration with off-chain assets. The expansion of stablecoins hints at a future where tokenized dollars and on-chain finance increasingly compete with, and complement, traditional financial infrastructure.

Meanwhile, Solana is solidifying its position as a leading hub for tokenized dollars and stablecoin adoption. On Solana, USDC, USDT, and PayPal’s PYUSD sit in the $1B+ market-cap tier, while USDG, BlackRock’s BUIDL, and Ondo’s USDY occupy the $100M–$1B range. According to DeFiLlama, total stablecoin supply across chains is nearing all-time highs, with Solana capturing a meaningful share of the recent growth. With USDT dominance still above 60% and new mints accelerating, Solana continues to attract RWA issuers and stablecoin liquidity, reinforcing the network’s role in the next wave of crypto payments and on-chain settlement.

Background

Over the last year, one of the most important stories in payments hasn’t been about a new card network or a big bank. It’s about stablecoins.

Dollar-pegged “digital dollars” like USDT and USDC are now moving Visa-scale – and even Visa‑beating – volumes across public blockchains. At the same time, new mints from issuers like Circle and Tether are pushing total stablecoin supply back toward all‑time highs, with Solana emerging as a key chain for tokenized dollars and real‑world assets (RWA).

For DeFi and fintech builders, this isn’t just a crypto milestone. It’s a structural shift in how value moves, who controls the rails, and where innovation is happening.

What Are Stablecoins, Really?

Stablecoins are crypto tokens designed to track the price of a reference asset, most commonly the U.S. dollar. The dominant segment today is reserve‑backed stablecoins, where each token is backed (in theory) by cash, short‑term Treasuries, or other high‑quality liquid assets.

Common examples:

• USDT (Tether) – the largest by market cap

• USDC (Circle) – widely used by fintechs and institutions

• PYUSD (PayPal USD) – PayPal’s dollar stablecoin

• USDG, BUIDL, USDY – newer entrants with RWA and yield components

Why they matter for payments and DeFi:

• Price stability – they behave like dollars, not like volatile crypto assets

• 24/7 settlement – transactions clear within seconds or minutes, globally

• Programmability – smart contracts can hold and move stablecoins automatically

• Composability – the same token can be used across exchanges, wallets, DeFi protocols, and apps

In practice, stablecoins function as on‑chain dollars: the base money for DeFi and a bridge between traditional finance and crypto rails.

Stablecoin Transaction Volume Has Surpassed Visa

Multiple data sets now point to the same conclusion: stablecoin transaction volumes have overtaken Visa’s payment volume on key timeframes.

• Bitwise’s crypto market review shows that stablecoin transfer volume in 2024 was roughly $27.6 trillion, exceeding the combined transaction volume of Visa and Mastercard, as highlighted by the World Economic Forum and others World Economic Forum.

• An analysis of Q1 2025 data found that dollar‑linked stablecoins moved about 14 trillion compared with Visa’s 13 trillion in the same period, according to research summarized by Almond FinTech.

• Separate coverage of Bitwise’s long‑term chart shows that stablecoins went from virtually zero volume in 2018 to Visa‑scale by 2023–2024, and in some quarters have already processed more value than Visa alone, as noted by CryptoDnes.

A few years ago, Visa’s transaction volume was nearly 10x larger than stablecoin volume. That gap has closed in under half a decade.

This doesn’t mean stablecoins are “bigger than Visa” in every meaningful sense (we’ll come back to that nuance), but it does highlight a crucial point: on‑chain payment rails are now operating at global card‑network scale.

The Return of Capital: $14B+ in Fresh Stablecoin Mints

After recent market volatility, stablecoins saw a pronounced return of capital:

• Circle rapidly minted around 750 million in USDC in over just a few hours,on top of repeated 250 million batches throughout the month.

• Tether (USDT) and other issuers joined in, bringing new issuance above $14 billion since the last major market drawdown.

This surge in new mints signals two things:

1. Capital is re‑entering crypto rather than staying on the sidelines in bank deposits or money funds.

2. Institutions, trading firms, and fintech platforms still view on‑chain dollars as useful collateral and settlement assets, even after cycles of volatility.

In parallel, standard market infrastructure is forming around these tokens: custodians, compliance tooling, blockchain analytics, and banking integrations all reduce friction for larger players.

RWAs, Treasury Bills, and the Next $2 Trillion Market

Stablecoins are increasingly tied to real‑world assets (RWA) in two ways:

1. Reserves – Leading issuers back their stablecoins with short‑term U.S. Treasuries and cash equivalents, making them some of the largest indirect holders of U.S. government debt globally.

2. Tokenized yield products – Products like BlackRock’s BUIDL and various on‑chain money‑market tokens wrap Treasuries or money‑market funds into programmable, tokenized forms.

Standard Chartered has projected that the RWA tokenization market could reach around $2 trillion by 2028, with stablecoins as a core driver of that growth, alongside tokenized money market funds, equities, and income‑producing real estate.

Citi’s Future of Finance think tank goes even further on the stablecoin side:

• It estimates the stablecoin market (roughly 240 B at the time of their report could grow to 1.6 trillion by 2030, and in a bullish scenario as high as $3.7 trillion, potentially surpassing today’s entire crypto market cap, as summarized by CCN.

Crucially, Citi and others expect use cases to shift from trading to payments. Payments are estimated to represent about 16% of stablecoin transactions today, but that figure could rise toward 50% as enterprises adopt on‑chain settlement for everyday use cases.

Solana’s Tokenized Dollar Stack: From USDC and USDT to BUIDL and USDY

While Ethereum remains the core settlement layer for stablecoins, Solana has emerged as a major venue for tokenized dollars and RWAs:

• USDC, USDT, and PayPal’s PYUSD each sit comfortably in the $1B+ market‑cap tier on Solana.

• A second tier — including USDG, BlackRock’s BUIDL, and Ondo Finance’s USDY — occupies the 100M–100M–100M–1B bracket.

• Data from DeFiLlama shows total stablecoin supply near all‑time highs, with Solana capturing a meaningful share of recent growth.

Why Solana is attractive for stablecoins and tokenized assets:

• High throughput, low latency – Near‑instant confirmation times and high TPS capacity suit payments, trading, and micro‑settlement.

• Low fees – Sub‑cent transaction costs make small‑ticket on‑chain payments viable.

• Growing RWA and DeFi ecosystem – Protocols issuing tokenized Treasuries, yield‑bearing dollars, and structured products are increasingly choosing Solana as a primary or secondary deployment target.

With USDT’s dominance still above 60% globally and new mints flowing to multiple chains, Solana stands out as a preferred venue for “crypto‑native dollars” and RWA issuers looking for scalable infrastructure.

Stablecoins vs Visa: How Comparable Is the Volume?

The headline “stablecoins vs Visa” can be misleading if taken at face value. The raw numbers are astonishing, but not all volume is created equal.

Key differences:

1. Economic intent

   • Visa volume is dominated by real‑world purchases: point‑of‑sale transactions, online commerce, bill payments.

   • Stablecoin volume includes a mix of genuine economic activity and intra‑crypto flows: DEX trades, collateral shuffles, liquidity provisioning, arbitrage, and protocol‑to‑protocol interactions.

2. Recycling of capital 

   Market‑structure experts point out that professional traders can generate hundreds of millions in on‑chain volume with relatively small amounts of capital, by cycling the same stablecoins through multiple venues. That inflates raw transaction metrics.

3. Transaction quality

    Analyses by Visa and independent researchers have suggested that a relatively small share of on‑chain stablecoin transactions reflect end‑user payments in the traditional sense. Some estimates have put “genuine” payment transactions at around 10% of total stablecoin activity, though methodologies vary.

4. Measurement methods

   • Stablecoin volumes are often measured as gross on‑chain transfer value.

   • Card‑network metrics are typically netted and categorized differently (e.g., cleared transactions, chargebacks, reversals).

So while it is accurate to say that stablecoin transaction volume has surpassed Visa’s on key timeframes, it is not accurate to claim that stablecoins have replaced Visa in terms of real‑world payment utility.

A more nuanced takeaway:

Stablecoins have reached card‑network‑scale throughput, but the composition of that volume is different — more trading and DeFi activity, less retail spend.

For builders and strategists, the important point is that the rails are there: stablecoins have proven they can handle trillions in value, and the mix of use cases is steadily shifting toward payments.

Why Enterprises and Fintechs Are Moving to On‑Chain Dollars

Beyond speculation, there are very concrete reasons why SMBs, fintechs, and even Fortune 500s are integrating stablecoins into their payment and treasury workflows:

1. Cross‑border payments and remittances 

   Stablecoins enable near‑real‑time, 24/7 cross‑border transfers with significantly lower friction than correspondent banking. Multiple reports highlight their growing role in international B2B flows and remittances, especially in emerging markets.

2. Treasury efficiency and yield

   • Corporates can hold tokenized T‑bill exposure or yield‑bearing stablecoin wrappers (e.g., money‑market tokens) while retaining on‑chain liquidity.

   • Settlement in and out of DeFi strategies or crypto counterparties becomes operationally simpler.

3. Programmable payments 

   Smart contracts allow for conditional, programmable disbursements:

• Streaming payroll

• On‑chain revenue sharing

• Automated escrow and milestone‑based payouts

4. Financial inclusion and inflation hedging 

   In regions with unstable banking systems or high inflation, USD‑pegged stablecoins offer a practical store of value and a way to participate in global commerce (World Economic Forum).

   
   

5. Regulatory momentum and clarity

   • Legislative initiatives such as the GENIUS Act in the U.S. are building clearer rules for fiat‑backed stablecoins, which 90% of Fortune 500 executives say is key for innovation.

   • Major banks and payment companies are exploring or outright issuing stablecoins, further normalizing the asset class.

The net effect: stablecoins are evolving from a trading tool to a core payments and treasury primitive.

Visa Is Not Standing Still

The “stablecoins vs Visa” narrative can sound adversarial, but Visa is actively integrating stablecoins into its own stack rather than ignoring them.

Recent initiatives include:

• Stablecoin-based settlement pilots on Ethereum and other networks, where Visa uses stablecoins to settle obligations between issuing and acquiring banks.

• Partnerships with crypto and fintech companies to issue cards funded by stablecoin balances, allowing users to spend on‑chain dollars anywhere Visa is accepted.

The strategic logic is straightforward:

• For users and businesses, the best experience is interoperability: the ability to move between traditional cards and accounts and on‑chain wallets and stablecoins seamlessly.

• For Visa and other networks, supporting stablecoins is a way to capture volume on both sides of the bridge.

In other words, the future of payments is less “stablecoins vs Visa” and more stablecoins with Visa and other incumbents, competing and cooperating across different layers of the stack.

Key Concepts for DeFi and Fintech Teams

For a DeFi or fintech audience thinking about product strategy, a few concepts are particularly relevant:

1. Stablecoins as Settlement, Not Just Balance

Treat stablecoins as a settlement layer rather than just an asset:

• You can denominate pricing in local currencies, but settle B2B flows in USDC/USDT to reduce friction.

• Use stablecoins under the hood while keeping the UX familiar (IBANs, cards, local currency balances).

2. Tokenized RWAs as Yield‑Bearing “Cash Equivalents”

Tokenized money‑market funds and Treasury products — like BUIDL or USDY — behave like a yielding cash reserve:

• Ideal for treasury management in crypto‑native organizations.

• Useful for fintechs that want to offer on‑chain yield with transparent, high‑quality collateral.

Risk management, regulatory treatment, and counterparty assessment remain critical, but the building blocks now exist on public chains.

3. Chain Selection Matters

Solana, Ethereum, and L2s each have different trade‑offs:

• Ethereum & rollups – Deepest liquidity, broadest DeFi ecosystem, well‑understood security model.

• Solana – High throughput and low fees, increasingly attractive for retail‑scale on‑chain payments, consumer apps, and RWA issuers.

• Other L1s/L2s – May target niches like gaming, specific regions, or regulatory environments.

For payments or consumer products, latency and cost often matter more than maximum decentralization. For high‑value settlement, security and ecosystem depth take priority.

The Bottom Line: Trillions Are Already On‑Chain

Stablecoins have quietly crossed an important threshold:

• Trillions of dollars in stablecoin transaction volume now rival — and in some periods exceed — Visa’s payment volume (CryptoDnes, Almond FinTech, World Economic Forum).

• Capital is flowing back into the space, with over $14B in new stablecoin issuance following recent market stress.

• Solana and other high‑throughput chains are becoming core venues for tokenized dollars and RWAs, not just trading.

• Forecasts from major banks like Standard Chartered and Citi suggest that RWAs and stablecoins could reach multi‑trillion‑dollar scale by the end of the decade.

For DeFi protocols, fintechs, and financial institutions, the message is clear:

Stablecoins are no longer a side story of crypto. They’re becoming foundational payment infrastructure, operating at global scale and increasingly integrated with the rest of the financial system.

The next competitive edge won’t come from asking whether to use stablecoins, but how deeply to embed stablecoin rails into your products, risk models, and business strategy.