Stablecoins recorded an annual transaction volume of up to $35 trillion, yet only about $390 billion of that figure represented actual payments, according to a February 2026 analysis by McKinsey and Artemis Analytics. The gap raises a central question for the sector: if stablecoins are moving trillions of dollars, who is actually using them to make purchases?

Stablecoins are cryptocurrencies designed to maintain a steady value by pegging to an underlying asset, most often a traditional currency such as the US dollar. Unlike Bitcoin, which is prone to sharp price swings, dollar-backed tokens such as Tether's USDT and Circle's USDC aim to stay close to $1. They allow holders to store and transfer digital dollars without depending entirely on traditional banking systems.

That characteristic has made stablecoins valuable to cryptocurrency traders, individuals seeking to protect savings from local currency depreciation, businesses settling international payments, and people sending money across borders. Headline transaction figures, however, can be misleading.

Rapid Supply Growth, Trading-First Origins

Stablecoins have existed since 2014, but their popularity surged as cryptocurrency markets expanded. Total supply climbed from under $30 billion in 2020 to more than $300 billion by 2025, and according to the Federal Reserve, the market reached $317 billion as of April 6, 2026 — a 50% increase since early 2025.

USDT and USDC are the two leading stablecoins. Both are pegged to the dollar and backed by reserve assets that, according to the issuers' published disclosures, include cash and short-term US Treasuries, but they operate under different reserve policies and regulatory frameworks. Those frameworks are also coming into focus: the European Union's MiCA regime began applying to stablecoin issuers in mid-2024, and the United States enacted the GENIUS Act in July 2025, setting reserve, disclosure, and oversight requirements for payment stablecoin issuers. In their early years, stablecoins were used primarily for cryptocurrency trading, allowing users to switch between digital assets without converting back to traditional currencies. Exchanges also relied on them for liquidity and transaction settlement.

Trading still dominates, but actual payments made with stablecoins totaled roughly $390 billion annually based on December 2025 figures — approximately 0.02% of global payment volumes. Around $226 billion came from business-to-business transactions and about $90 billion from payroll and remittances.

Cross-Border Footprint Remains Small but Growing

While stablecoins are seeing real-world usage, their impact on the overall global payment system remains limited. A July 2026 report from Allium and FXC Intelligence estimated that stablecoins were involved in $135 billion of the $44.3 trillion retail cross-border payments market in 2025 — about 0.31% of the total, up from $82 billion in 2024. The report also highlighted year-on-year growth of 64% in stablecoin cross-border payments, compared with just 9% for traditional fiat channels. Established payment companies have been building positions in the sector as well: PayPal launched its own dollar stablecoin, PYUSD, in 2023, and Stripe completed its roughly $1.1 billion acquisition of the stablecoin infrastructure firm Bridge in February 2025.

Nigeria: A Case Study in Dollar-Linked Demand

In countries where foreign currency is difficult or costly to access, stablecoins offer an alternative way to hold dollars and send money internationally. Nigeria is a leading example. According to a June 2026 report from the International Monetary Fund (IMF), Nigeria accounted for roughly 60% of stablecoin inflows into sub-Saharan Africa from late 2019 to early 2025. The country recorded about $59 billion in crypto-asset inflows between July 2023 and June 2024, with stablecoins making up more than 65% of Nigeria's cross-border crypto inflows in 2024. By 2025, Nigeria was estimated to have approximately 25.9 million digital-asset users, about 12% of its population — a figure that includes all types of digital assets, not only stablecoins.

For many Nigerians, stablecoins are a practical solution. Freelancers working for overseas clients often receive payments in USDT or USDC. Businesses importing goods may use them to pay international suppliers, and people receiving money from family abroad can access funds through digital wallets. The IMF noted that the depreciation of the naira, high inflation, and limited access to foreign exchange in 2023 and 2024 fueled demand for dollar-linked assets, giving households and businesses a means to preserve value in dollars and transact overseas.

Receiving stablecoins, however, does not mean spending them on everyday purchases. Many users hold them as savings, trade them on exchanges, or convert them to naira through peer-to-peer platforms — a distinction that matters when assessing how deep adoption actually runs.

Benefits and Constraints

Digital assets appeal because they enable cross-border transactions without the constraints of traditional banking hours and processes. Depending on the blockchain and service provider, transfers can settle within minutes. For businesses, stablecoins can simplify access to foreign currencies and ease international payments; individuals gain an alternative channel for receiving money from abroad.

Challenges persist, though. Users need dependable wallets, access to exchanges or payment services, and a way to convert digital dollars into local currency when needed. Factors such as network fees, exchange-rate spreads, fraud, and wallet security also affect transaction costs and safety.

Economic concerns are significant as well. The IMF has cautioned that widespread use of dollar-backed stablecoins could exacerbate digital dollarisation, particularly in countries like Nigeria, potentially weakening demand for local currencies and complicating monetary policy. The Bank for International Settlements noted in its 2026 Annual Economic Report that stablecoins are used primarily for cryptocurrency trading and, to a lesser extent, as stores of value in countries with unstable currencies. Their effectiveness as cross-border payment methods varies, especially once fees and conversion costs are accounted for.

The Real Test of Adoption

Stablecoins have clearly evolved beyond a niche crypto option. Supply has grown, payment volumes are rising, and more individuals and businesses are discovering the benefits of digital dollars. Yet $35 trillion in reported transaction volume does not mean $35 trillion in actual payments. The true measure is how much money reaches workers, suppliers, families, and businesses — the real test of stablecoin adoption.