Stablecoin transaction volumes surged 72% to $33 trillion in 2025, driven by regulatory clarity and expanding institutional adoption.

Circle's USDC processed $18.3 trillion in transactions while Tether's USDT handled $13.3 trillion, according to Bloomberg.

The combined activity represents the fastest annual growth since stablecoins emerged as payment infrastructure.

What Happened

The GENIUS Act established federal stablecoin regulations in July, creating frameworks that encouraged institutional participation.

Transaction volumes accelerated through Q4, reaching $11 trillion compared to $8.8 trillion in Q3.

Major retailers including Amazon and Walmart explored stablecoin initiatives following the legislation.

World Liberty Financial launched its USD1 token in March.

USDC's transaction dominance stems from heavy DeFi usage where tokens circulate frequently.

USDT maintains a $187 billion market capitalization advantage despite lower transaction flow.

The divergence reflects different use cases: USDC powers DeFi while USDT functions for payments.

Bloomberg Intelligence projects flows could reach $56 trillion by 2030.

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Why It Matters

Regulatory clarity removed barriers that previously limited institutional stablecoin adoption.

The shift toward mainstream usage signals stablecoins transitioning from crypto tools to broader financial infrastructure.

Fourth-quarter acceleration suggests momentum building as adoption expands.

Transaction volume growth outpacing market cap increases indicates genuine usage expansion rather than speculation.

USDC's transaction leadership despite smaller size demonstrates how stablecoins serve distinct market segments.

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