Stablecoins grossed more transaction volume than Visa in 2024 — Report

Bitwise Investments , a cryptocurrency index fund and asset management company, has released a market review report on cryptocurrencies for the first quarter of the year. 

The firm found that for the first time ever, the total volume of transactions involving stablecoins surpassed the yearly total of all payments facilitated by the global finance giant, Visa. 

Talking points 

• According to the report, Visa, which executes fiat payments in more than 200 countries globally, has consistently grossed more in transaction volume since 2018, when stablecoins came to the fore. 
• In its annual report, Visa said it processed $13.2 trillion in 2024, $900 billion more than the year before. 
• Bitwise, quoting data from Coin Metrics, stated that the total transaction volume of stablecoins within the same period came just over VISA’s reported volume. 
• In addition, stablecoins held as assets under management (AUMs) by global financial institutions rose to $218 billion in value, 13.5% more than the previous three months. 

Dive deeper 

• Stablecoins are at an all-time high in terms of usage and adoption numbers. 
• A reason for this, especially for countries in the Global South, is that fiat-pegged stablecoins provide easy access to otherwise scarce foreign exchange. 
• Last year, Chainalysis gathered that stablecoins accounted for almost half of the total crypto transaction volume in the region and more than double the volume of the most dominant crypto, bitcoin. 
• Chris Maurice, CEO of the pan-African exchange Yellow Card, confirmed a noticeable tilt in adoption towards stablecoins. He added that the shift is not isolated from forex shortages plaguing most African countries. 

Maurice said: 

“About 70% of African countries are facing an FX shortage, and businesses are struggling to get access to the dollars they need to operate. Stablecoins provide an opportunity for these businesses to continue to operate, grow, and strengthen the local economy.” 

• In addition, stablecoins have also proven to be a useful tool to settle cross-border transactions seamlessly. 
• Last month, global payments firm and issuer of the stablecoin USDC, Circle, announced the launch of a system for facilitating international payments and money transfers using stablecoins. 
• It partnered with several legacy financial institutions and fintechs, a move that further highlights a tilt towards stablecoins by traditional financial entities.