Stablecoin Payments Surpass $5T as FX Costs Remain Stubborn

Stablecoin transactions have exceeded $5 trillion across one billion payments this year, according to data from Visa and Allium. The sector's market capitalization has surged 47% to $255 billion since November 2024, fueled by regulatory clarity and expanding corporate use cases.

These dollar-pegged tokens are fulfilling their promise as a faster, cheaper alternative to traditional payment rails—particularly in underserved markets where banks have limited reach. Cross-border transfers that previously took days now settle in minutes, creating new opportunities for global commerce.

Yet persistent foreign exchange costs continue to plague both fiat and crypto transactions. Currency conversions still incur spreads, fees, and slippage—especially during on-ramp and off-ramp movements between blockchain and traditional banking systems.