Stablecoins have emerged as one of the most dynamic segments of the cryptocurrency market, with their total transaction volume soaring by 83% year-on-year to surpass $4 trillion between July 2024 and July 2025, according to a new report by blockchain analytics firm TRM Labs. The report revealed that stablecoins now account for roughly 30% of all crypto transactions, solidifying their position as the dominant medium for digital asset transfers worldwide.
TRM Labs’ Head of Policy and Strategic Partnerships for APAC, Angela Ang, told Decrypt that the rise of stablecoins represents “just the beginning of the adoption curve,” suggesting the trend will continue as more institutions explore blockchain-based settlement systems. She emphasised that despite record usage, stablecoins still represent only a small share of the global money supply. “As institutions seek to leverage digital assets for use cases like value transfer, interest will continue to surge,” Ang said.
The market remains heavily concentrated and largely U.S. dollar-driven, with Tether’s USDT and Circle’s USDC controlling a combined 93% of total supply. More than 90% of fiat-backed stablecoins are pegged to the U.S. dollar, underscoring the currency’s ongoing dominance in digital finance. The total market capitalisation of stablecoins currently stands at around $312 billion, according to CoinGecko, and prediction platform Myriad indicates that 56% of participants expect the figure to exceed $360 billion by early 2026.
However, the same characteristics that make stablecoins attractive for legitimate purposes—speed, low transaction fees, and global accessibility—are also fueling their role in illicit activities. TRM’s report noted that while 99% of stablecoin use remains lawful, these tokens accounted for about 60% of illicit crypto transactions over the past year. The firm attributed this to the convenience and stability that stablecoins offer compared to volatile cryptocurrencies like Bitcoin and Ethereum. Investment scams made up the bulk of illegal activity, while extortion and blackmail cases within the stablecoin ecosystem jumped by 380% between January and July 2025.
Regionally, South Asia has emerged as the world’s fastest-growing hub for crypto activity, with transaction volumes in the region up 80% year-on-year to reach $300 billion. India ranked as the top country for overall crypto adoption, followed by the United States and Pakistan, while Bangladesh placed 14th despite its crypto ban. TRM credited South Asia’s rapid growth to its youthful population, tech-savvy workforce, and increasing regulatory clarity, such as Pakistan’s plans to establish a Virtual Assets Regulatory Authority (PVARA).
As global regulators continue to develop frameworks for digital currencies, analysts suggest that stablecoins could play a central role in the next phase of financial infrastructure—bridging the gap between traditional banking systems and decentralised finance.
