Stablecoins: The Next Big Crypto?

After tracking crypto markets for years, 2025 feels markedly different. While most investors focus on Bitcoin hitting new highs, something bigger is happening under the radar.

Stablecoins are exploding. And the data backs this up completely.

The numbers tell the whole story. The stablecoin market hit $223 billion in February 2025. That’s larger than most countries’ GDP. But here’s what really stands out – stablecoins processed $8.5 trillion in Q2 2024 alone. That’s double what Visa handled in the same period.

When moving serious money, security matters. That’s why Atomic Wallet stands out for managing stablecoins. It’s non-custodial, which means users control their keys. No exchange can freeze funds or disappear overnight. The platform supports multiple networks including Ethereum, Solana, and offers a dedicated Avalanche wallet for those preferring the AVAX ecosystem’s fast transaction speeds and low fees.

The Big Banks Are Coming

Here’s the development that changes everything. JPMorgan, Bank of America, Citigroup, and Wells Fargo are secretly planning their own stablecoin. The Wall Street Journal broke this story in May 2025.

Consider this carefully. These are the same banks that called Bitcoin “rat poison” just a few years ago.

Their strategy? Use Zelle and The Clearing House infrastructure to launch a joint bank-backed stablecoin. They recognize that crypto companies are capturing market share, and they’re responding aggressively.

JPMorgan already operates JPM Coin, processing billions in internal transactions. Wells Fargo tested Digital Cash for cross-border payments. Bank of America’s CEO Brian Moynihan stated publicly they’ll launch a stablecoin once regulation clarifies.

The institutional shift is undeniable.

Congress Actually Delivered

For once, Washington moved decisively. The GENIUS Act passed the Senate 66-32 in May 2025. The House has a similar bill called the STABLE Act.

This isn’t vague crypto framework language. These are specific rules for stablecoin issuers:

• Must be federally approved or bank subsidiaries
• 100% backing in cash and Treasuries
• Monthly audits and public reporting
• Clear redemption rights

Regulatory clarity transforms entire markets. Companies can finally build without fear of sudden regulatory changes.

RLUSD: Ripple’s Strategic Move

Ripple launched RLUSD in December 2024 under New York banking regulations. Initial skepticism was understandable given the crowded stablecoin market.

But the execution tells a different story. RLUSD is already facilitating cross-border payments through Ripple’s established network. They’ve processed $70 billion in payments across 90 countries.

Former Reserve Bank of India Governor Raghuram Rajan joined their advisory board. So did Kenneth Montgomery from the Boston Fed. These aren’t crypto enthusiasts. They’re serious central bankers backing regulated stablecoins.

RLUSD operates on both XRP Ledger and Ethereum. This multi-chain approach provides DeFi access while maintaining regulatory compliance.

Europe Sets the Standard

The EU isn’t lagging behind. Their MiCA regulation became fully operational by Q1 2025. Exchanges had to delist non-compliant stablecoins by January.

This created a clean regulatory environment. No more regulatory uncertainty. Institutional capital flows where rules are clear and consistent.

Singapore and Hong Kong are implementing comprehensive frameworks. They want to establish themselves as stablecoin hubs before the US market dominates completely.

Real Use Cases Are Scaling

Beyond the speculation, here’s what’s actually happening in the market:

• Cross-border payments: A Philippine worker in Dubai can send money home in seconds for minimal fees. Traditional remittance companies charge 7-10%. Stablecoins charge 0.1%.
• Business payments: Companies use stablecoins for supplier payments and payroll. No waiting 3-5 business days for bank transfers. Capital moves 24/7.
• Treasury operations: CFOs hold stablecoins as cash equivalents. They earn yield while maintaining dollar exposure.
• DeFi lending: Institutions lend stablecoins at 4-8% annually. Traditional banking offers nothing comparable.

The Infrastructure Is Operational

Here’s what the data shows. A Fireblocks survey found 86% of financial institutions report their infrastructure is ready for stablecoins. The industry has moved past pilot programs.

Payment processors are integrating stablecoin capabilities. Stripe offers stablecoin payouts to merchants. Mastercard partnered with MoonPay for stablecoin payments across 150 million merchants.

The infrastructure exists. Volume is the only missing piece.

However, it’s important to note that a significant portion of stablecoin transaction volume comes from automated trading bots rather than real economic activity. Industry data suggests that bots account for approximately 70% of all stablecoin transactions, with some networks like Solana seeing up to 98% bot activity. This means the comparison with traditional payment processors like Visa should be viewed with this context in mind.

Market Leadership Remains Concentrated

USDT dominates with $139.5 billion market cap. Regardless of controversy, Tether moves global markets.

USDC holds $56 billion. Circle went public and prioritized regulatory compliance.

But the trend is clear: institutional stablecoins are growing faster. RLUSD, JPM Coin, and bank-issued tokens target enterprises, not retail traders.

Significant Risks Remain

Optimism must be balanced with realism. Several risks could derail stablecoin adoption:

• Regulatory overreach: Politicians might ban private stablecoins to protect central bank digital currencies.
• Technical failures: Smart contract vulnerabilities or key management failures could destroy market confidence.
• Market concentration: If Tether experienced severe problems, it would devastate the entire ecosystem.
• Banking competition: Once major banks launch stablecoins, they might attempt to eliminate crypto-native competitors.

Market Outlook for 2025

Three trends will drive the next phase:

Banking integration: More traditional banks will launch stablecoins. They cannot ignore $8.5 trillion in quarterly transaction volume.

Yield integration: Interest-bearing stablecoins will compete directly with bank deposits. Why accept 0.5% savings rates when stablecoins offer 4%?

Global expansion: As regulation clarifies, expect stablecoins beyond dollar-denominated tokens. Euro, yen, and pound stablecoins are inevitable.

The Analysis

Stablecoins solve fundamental problems. They’re faster than traditional banking, cheaper than legacy payment systems, and operate continuously. Most importantly, they’re becoming regulated and institutional-grade.

The $223 billion market cap represents the beginning, not the peak. When major banks launch their stablecoins and Congress passes federal legislation, exponential growth becomes likely.

This transition has moved beyond speculation into infrastructure development. And infrastructure investments typically generate substantial returns.

The stablecoin transformation is happening now. The question is whether market participants are positioning appropriately.