Why Stablecoins’ $3.7T Growth Depends More on Market Forces Than Pricing

In 2025, stablecoins have emerged as the leading use case for crypto, gaining traction across institutional flows. Finery Markets data shows stablecoins’ share of transaction volume jumped from 23% in 2023 to 62% in Q1 2025. Citi now projects the market could grow to $1.6–$3.7 trillion by 2030, with rising M&A activity—such as Stripe’s $1.1 billion acquisition of Bridge—signalling confidence in this growth.Regulatory Progress and LimitationsHowever, adoption requires more than payment on-ramps and regulatory clarity. The GENIUS Act and MiCA are major steps, but they primarily address issuance and backing. For stablecoins to serve as financial infrastructure, they must also thrive in secondary markets that meet institutional standards.Stablecoins as Efficient Fiat-Blockchain BridgesToday, stablecoins are used mainly in “bridge mode,” offering efficient fiat-blockchain transfers. USDC processed $850 billion in such flows. Other examples include Monerium’s EURe and BRLA Digital’s real-pegged token, which offer compliant access to the crypto economy in local currencies. These models clearly outperform traditional rails in cost and speed.USDC & EURC are the first stablecoins recognized by the Dubai Financial Services Authority (DFSA)!This reinforces Circle’s position as the only major global stablecoin issuer compliant with European Union (MiCA) regulations and Canada’s new listing rules.This recognition… You may find it interesting at FinanceMagnates.com: Stablecoins Could Reach $3 Trillion Market Cap by 2029 amid Institutional ETF Adoption.Infrastructure Gaps and Institutional NeedsStill, much of the infrastructure is focused on issuance and custody, with gaps in trading environments. True institutional adoption needs stablecoins to trade with deep liquidity, low latency, and regulatory oversight. The next phase requires integration into robust secondary markets, including:Trading venues offering diverse stablecoin pairsLiquidity providers supporting fiat and crypto conversionsDeFi platforms enabling cross-chain swaps and collateralizationCustodians and compliance tools tailored for institutional needsAs a tech provider enabling $2 billion in monthly stablecoin OTC turnover, we see a strong shift to private, bilateral trading environments. Institutions now seek tailored execution, aggregated liquidity, and best execution principles—contrasting with exchange volumes dominated by algorithmic trading.Details on the GENIUS ACT • Would establish a regulatory framework for some U.S. dollar-backed stablecoins — first of its kind• J.D. Vance says the Trump administration doesn't see stablecoins as a threat to the U.S. dollar — "It's quite the opposite" • Could potentially… Market Growth and Regulatory ImpactStablecoins are the only digital assets to record triple-digit growth in 2024 and 2025. Regulatory changes like MiCA are reshaping volumes: delistings of USDT have fueled over 30x YoY growth in USDC in Q1 2025. This shows the importance of regulatory-grade secondary infrastructure.Why U.S. Capital Investment is Surging, and What It Means for Crypto's Future America is back in innovation mode.States like Wyoming and Texas are exploring stablecoins. Capital investment in the U.S. just hit an all-time high, even after adjusting for inflation.We're seeing… Closing the Loop: Beyond PaymentsThe real promise of stablecoins lies beyond payments: programmable money powering FX, liquidity management, securities settlement, and tokenized money markets. But this future hinges on one missing piece—compliant, liquid, secondary trading infrastructure. The rails are built, issuance is live, and demand is growing. It’s time to close the loop.