Stablecoins Drive The Future

It’s 2025 and stablecoins have officially gone mainstream. Once only used as a temporary parking spots for traders between Bitcoin and Ethereum transactions.

These U.S dollar and euro pegged digital currencies are now growing thanks to traditional financial giants like Visa and Mastercard in terms of global transaction volumes. From massive infrastructure upgrades to multi-chain support and new regulations. Stablecoins are rapidly becoming the centre point of the next generation payment ecosystem.

Visa Expands It's Stablecoin Venture

Visa the world’s largest payment network has expanded its stablecoin offerings and is now supporting four major stablecoins USDC, PYUSD, USDG, and EURC across four blockchains being Ethereum, Solana, Stellar and Avalanche. This move marks a significant step forward in Visa’s mission to build an interoperable layer for global stablecoin adoption.

Visa's stablecoin strategy began in 2021 with a USDC pilot but the firm has now moved far beyond experimentation. Its integration of PayPal’s PYUSD, Paxos’ Global Dollar (USDG) and Circle’s euro denominated EURC shows the companies expansion into stablecoin use. The company is now helping clients settle transactions in digital dollars and euros directly on chain, eliminating the need for slow and expensive fiat based cross border transfers.

US 27 Trillion in Stablecoin Transactions

The scale of adoption is staggering. Visa’s analysis shows that stablecoins accounted for US 27 trillion in global transaction volume across 1.25 billion transactions in 2024 alone. That figure puts stablecoins firmly in the realm of mainstream payment systems and now rivalling legacy networks not just in usage but also in reach.

This surge is driven by multiple factors which include high inflation in many fiat currencies, cross border payment friction and the want for programmable money in B2B and retail environments. As more enterprises and financial institutions embrace stablecoins for settlement. The infrastructure powering these transactions must evolve to handle increasing scale and speed.

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Alchemy becomes Visa's go to

That’s where infrastructure players like Alchemy dubbed the “AWS of crypto” step in.%20Program%20since%20January%202023.) Founded in 2017 by Stanford computer scientists, Alchemy provides the backend tools and APIs powering many decentralized applications. It also supports data and transaction flow for major stablecoin issuers like Circle and Paxos.

Alchemy has announced its new Cortex Engine architecture which it states slashes response times from 300-400 milliseconds down to under 50 milliseconds. This 66% reduction in latency makes stablecoin payments faster than ever approaching the NASDAQ-scale throughput that traditional markets rely on.

Stablecoins are no longer fringe financial tools. Their fast settling programmable nature makes them ideal for modern digital commerce especially in emerging markets, remittances, B2B settlements and cross border payments. And with major players like Visa building bridges between TradFi and DeFi, the barriers to entry for mainstream adoption are crumbling.

Interesting times indeed, what are your thoughts on the future of stablecoins?

image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services

Posted Using INLEO