According to a new report by Andreessen Horowitz (a16z), stablecoins — cryptocurrencies pegged to the value of traditional currencies, most commonly the U.S. dollar — have become a major force in the global economy. Their total transaction volume over the past 12 months reached an astonishing $46 trillion, marking an 87% year-over-year increase.

Institutions Enter the Game

The year 2025 confirms the trend of growing institutional adoption of crypto. Financial giants such as BlackRock, Visa, Fidelity, and JPMorgan Chase, along with fintech firms like Stripe, PayPal, and Robinhood, are expanding their digital asset services and pushing cryptocurrencies from the fringes into the mainstream.

According to a16z, technological progress is also fueling this growth. Modern Blockchain networks can now process more than 3,400 transactions per second, over 100 times faster than five years ago. This makes stablecoins an efficient tool not only for trading but also for cross-border payments. “In the past, stablecoins were mainly used for speculative crypto trading. Today, they’re the fastest, cheapest, and most global way to send a dollar,” the a16z report notes.

Stablecoins as a Macroeconomic Force

The State of Crypto 2025 report describes stablecoins as a new “global macroeconomic power.” Their market capitalization has reached $316 billion, according to CoinMarketCap, with more than 1% of all U.S. dollars now existing as stablecoins on public Blockchains.

Stablecoins also hold more than $150 billion in U.S. Treasurys, making them the 17th-largest holder of U.S. government debt — ahead of many sovereign nations. The largest share belongs to Tether, which holds around $127 billion in Treasury bills.

Alongside the dominant Tether (USDT) and Circle (USDC), which are fully backed by real-world assets, attention is turning to the newer Ethena project and its synthetic dollar USDe, whose circulating supply has surpassed $11 billion.

Regulation Takes Shape

Regulatory changes are also playing a key role in the rise of stablecoins. In the United States, the GENIUS Act was recently approved, setting clearer rules for stablecoin issuers, including mandatory reserves and increased transparency. The goal is to boost consumer confidence and reduce systemic risks. In the United Kingdom, regulation is progressing more slowly, but authorities are working on a legislative framework expected by the end of next year.

Peter Sumer, CEO of BITmarkets

Sources:

https://a16zcrypto.com/posts/article/state-of-crypto-report-2025/