Stablecoins are no longer a niche tool for crypto traders. They have rapidly emerged as one of the largest settlement networks in the world.
Stablecoins Hit $33tn in Volume as 'Digital Dollar' Economy Eclipses Traditional Rails
9 January 2026 - 11:00 CET
By Sandmark staff
Total stablecoin transaction volumes jumped 72% last year to a record $33tn. This figure, based on data from Artemis Analytics and cited by Bloomberg, underscores how digital dollars are increasingly being used beyond speculative markets.
The data places stablecoin throughput on a scale that now rivals or exceeds major global card networks but operates largely outside the traditional banking system.
The velocity divergence
The report highlights a sharp divergence between where assets are held and how they are used.
USDC, issued by Circle Internet Group, dominated transactional activity with $18.3tn in flows during 2025. Tether’s USDT followed with $13.3tn.
This flips the market capitalization narrative. Tether remains the largest stablecoin by outstanding supply with roughly $187bn in circulation compared to $75bn for USDC. However, USDC has become the preferred vehicle for high-frequency capital movement. Its dominance in decentralized finance (DeFi) allows the same digital dollar to be recycled repeatedly through lending protocols, trading pools and automated market makers.
In contrast, USDT is commonly used as a store of value or for payment settlement in emerging markets. This results in a lower velocity of money as holders in inflation-prone jurisdictions tend to hoard rather than spend.
The GENIUS catalyst
Policy shifts in Washington have played a decisive role in this expansion. The US moved to formalize stablecoins under the GENIUS Act, passed in July 2025.
By establishing federal legal standards for issuance and reserves, the legislation removed the compliance gray zone that had previously kept Wall Street at bay. That clarity encouraged broader institutional engagement as major banks and payment processors began integrating stablecoin rails for instant 24/7 settlement.
Global risks remain
Despite the US policy clarity, international bodies remain wary. The International Monetary Fund has warned that large-scale stablecoin adoption could disrupt traditional banking by diverting deposits and weakening the transmission of monetary policy.
Momentum, however, continues to build. Stablecoin transaction volumes reached a record $11tn in the final quarter of 2025 alone. Bloomberg Intelligence estimates that annual stablecoin payment flows could reach $56tn by the end of the decade.
