Stablecoins, once considered a niche tool for crypto-native traders, are fast evolving into foundational pillars of the digital financial system. After 18 months of declining global stablecoin assets, adoption is accelerating rapidly, driven by three macroeconomic forces: their utility as savings instruments, their growing role in cross-border payments, and their embedded value in decentralised finance (DeFi) for generating above-market yields.

Galaxy Digital‘s latest research projects stablecoin supply will reach $300 billion by the end of 2025 and cross $1 trillion by 2030. This is not merely a milestone in crypto growth; it signals a profound shift in global financial dynamics.

Stablecoins as a Safe Haven

In countries where inflation is endemic and currency volatility undermines confidence, stablecoins are emerging as a vital savings mechanism. Markets such as Argentina, Turkey, and Nigeria plagued by capital controls, weak banking systems, and volatile local currencies have organically cultivated demand for dollar-denominated digital assets.

By bypassing the limitations of traditional finance, stablecoins like USDC and USDT allow individuals to preserve wealth in a more stable store of value. In Argentina, for example, stringent currency controls (like the Cepo Cambiario) have historically suppressed access to U.S. dollars. But now, stablecoin-powered apps like Lemoncash, RedotPay, and Rain are enabling residents to save and spend in digital dollars. Lemoncash alone claims to hold $125 million in deposits, capturing nearly 30% of Argentina’s centralised crypto market.

That $416 million in total AUM for Argentina’s crypto apps may seem modest, but it already represents over 1% of the country’s M1 money supply. When scaled across dozens of similar economies globally, the macroeconomic implications become immense. In many cases, stablecoin wallets are replacing commercial bank accounts, shifting the locus of monetary power beyond national borders.

Stablecoins Challenge the Cross-Border Payment Status Quo

Traditional cross-border payments via SWIFT are costly and time-consuming. Stablecoins are disrupting this paradigm by offering near-instant, low-cost settlements on public blockchains. Within national borders, domestic real-time payment networks are competitive. But for international transfers, stablecoins provide a clear advantage.

Galaxy estimates that B2B payments using stablecoins already exceed $100 billion annually, with Artemis reporting $3 billion in monthly volume across just 31 firms. Year-on-year, B2B stablecoin payments quadrupled between February 2024 and February 2025. This explosive growth signals a structural shift, not just a temporary uptick.

By acting as a global payment layer, stablecoins are bridging the fragmented world of international finance. Their utility is further enhanced through card integrations (e.g. RedotPay, GnosisPay, Exa), enabling users to spend stablecoin balances directly at merchants via Visa and Mastercard networks. This transforms stablecoins from speculative assets into real-world financial tools.

DeFi, Arbitrage, and the Expansion of Digital Credit

The third leg of stablecoin growth is tied directly to the evolution of decentralised finance. Platforms like Aave, Maker, and Compound allow users to lend, borrow, and earn yield using stablecoins. Unlike fiat bank deposits, these protocols offer interest rates that often exceed U.S. Treasury yields.

In 2021, DeFi rates responded to demand for leverage in trading and yield farming. In 2024, products like Ethena’s USDe link stablecoins to on-chain arbitrage strategies, unlocking sustainable yield opportunities. Galaxy’s analysis suggests that as long as DeFi remains a hub of innovation, stablecoin supply will rise to meet the demand for capital in these micro-markets.

What’s crucial is the spread between DeFi rates (on platforms like Aave) and U.S. Treasury yields. When this spread is positive, DeFi’s total value locked (TVL) grows. When it narrows or inverts, capital exits DeFi. This cyclical relationship highlights stablecoins’ dual identity: as digital claims on off-chain dollars and as native currencies of the on-chain economy.

Rewriting the Rules of Banking: Stablecoins and Credit Disintermediation

The implications of this stablecoin expansion reach far beyond crypto. They threaten to disintermediate traditional banking by reducing reliance on local deposit-taking institutions. Instead of placing money in a local bank, consumers now store value in tokenised dollars, which are often backed by U.S. Treasuries and bank deposits in developed markets.

Consider a user in Argentina who converts $20,000 worth of pesos into USDC. That money shifts from the national bank (Banco de la Nación Argentina) to $17,500 in U.S. Treasuries and $2,500 in deposits at major American banks like BNY Mellon. Effectively, credit creation in Argentina declines, while the U.S. benefits from new sources of demand for its government debt.

In fact, stablecoin issuers have already become major buyers of U.S. Treasuries. Galaxy notes that they are now the twelfth largest holder, poised to enter the top five as assets grow. If stablecoins reach $1 trillion in market cap, they will become systemic actors in global credit markets, exerting pressure on short-term interest rates and shifting the global financial centre of gravity toward the U.S.

The Forced Evolution of Asset Management

A future where stablecoin issuers become significant allocators of capital is no longer speculative. Tether has already emerged as a non-bank lender, and others may follow suit, evolving into decentralised financial institutions (DFIs) that outsource credit allocation to third parties or become limited partners in large private credit funds.

This trend mimics the post-2008 shift from bank lending to non-bank financial institution (NBFI) lending, accelerated by Basel III. As stablecoins capture more liquidity, they will open new channels for asset management. BlackRock, Apollo, and KKR could soon be managing money on behalf of stablecoin issuers.

Tokenised treasuries may also become a new class of fixed-income products providing on-chain yield in dollar-denominated terms. Platforms like Superform, Maker’s sUSDS, and Ethena are pioneering this trend, enabling stablecoin holders to earn yield while maintaining liquidity.

The Stablecoin Supercycle Has Just Begun

Galaxy’s report makes one thing clear: stablecoins and DeFi are not fringe experiments. They are foundational innovations capable of reshaping global finance. By 2030, stablecoins will not only serve as digital cash, but as savings instruments, payment rails, and key players in global credit creation.

This poses both opportunities and challenges. For emerging markets, stablecoins offer protection against inflation and financial repression. For DeFi, they unlock capital for decentralised innovation. But for traditional banks and regulators, they pose existential questions: How to sustain credit creation in the face of deposit flight? How to regulate global money that doesn’t respect borders?

The answers remain uncertain. But the trajectory is undeniable: stablecoins are becoming the backbone of a new financial architecture. And the $1 trillion milestone may just be the beginning.