USDT Dominates Stablecoin Lending Revolution as Visa Reports $670B On-Chain Credit Activity

In a groundbreaking analysis released today, Visa has identified stablecoins as a disruptive force poised to transform the $40 trillion global credit market. The payments giant's comprehensive study reveals that on-chain lending using stablecoins has reached an impressive $670 billion in volume over the past five years, signaling a fundamental shift in how credit markets operate. USDT, along with USDC, currently dominates approximately 90% of all stablecoin lending activity, demonstrating their established position as the backbone of decentralized finance lending protocols. The report highlights accelerating institutional adoption, with average loan sizes growing significantly from $76,000 to $121,000, indicating increasing confidence and larger-scale participation from professional investors and financial institutions. Despite this rapid growth, Visa notes that stablecoin lending still represents only 1.7% penetration of traditional credit markets, suggesting enormous untapped potential for future expansion. This analysis comes at a pivotal moment for digital assets, as traditional financial giants increasingly recognize the efficiency, transparency, and accessibility advantages that blockchain-based lending offers compared to conventional credit systems. The growing institutional interest, combined with the proven track record of stablecoins in facilitating secure and efficient lending, positions this sector for continued exponential growth as more traditional financial players enter the space and existing protocols mature.

Visa Sees Stablecoins Disrupting $40 Trillion Credit Market

Visa's latest analysis positions stablecoins as a transformative force in global credit markets, with $670 billion in on-chain lending volume recorded over five years. The payments giant observes accelerating institutional interest as average loan sizes grow from $76,000 to $121,000, though cautions this represents just 1.7% penetration of traditional credit markets.

USDC and USDT dominate 90% of stablecoin lending activity, mirroring their stranglehold on the $307 billion stablecoin market. This concentration raises systemic concerns, with the IMF warning of potential risk contagion should volatility strike the sector.

The report frames blockchain-based lending as an inevitable evolution rather than replacement for traditional finance. "Programmable money creates new risk assessment paradigms," analysts note, pointing to real-time collateral tracking and automated settlement as key advantages over legacy systems.

Tether Freezes $13.4M USDT Across Ethereum and Tron Networks

Tether Holdings has frozen $13.4 million worth of USDT across 22 wallet addresses on the ethereum and Tron networks, according to on-chain monitoring firm MistTrack. The largest portion, $10.3 million, was held in a single Ethereum address (0xecbd8), while a Tron address (TYzDeb) contained another $1.4 million.

The action continues Tether's pattern of compliance with law enforcement requests, though the specific reasons for this freeze remain undisclosed. This development coincides with ongoing legal scrutiny, including a Texas lawsuit alleging Tether unlawfully froze $44.7 million in a separate incident.

Historically, Tether has frequently frozen funds on TRON and Ethereum networks, including $12.3 million on Tron in June 2025 and similar interventions earlier that year. The stablecoin issuer maintains these measures combat illicit activity while critics question their transparency.

The Undervalued Altcoin Crypto Investors Wish They’d Discovered Sooner – Meet $SPY

SpacePay's $SPY token emerges as a dark horse in the crypto payments race, solving a persistent industry pain point. The London-based project enables merchants to accept cryptocurrency through existing card machines—no hardware upgrades required. A simple Android software update unlocks compatibility with 325+ crypto wallets, including ETH, BNB, and USDT.

The solution arrives as over 400 million global crypto holders struggle to spend digital assets. SpacePay automatically converts transactions to local fiat at point-of-sale, eliminating volatility concerns for businesses. This seamless integration could accelerate crypto's transition from speculative asset to practical payment tool.