Where Money Moves - Edition #3

The momentum behind stablecoins is more visible than ever: in volumes that now surpass major card networks, in new entrants from global banks, and in the policy debates cropping up from Brussels to Washington. Given the past few weeks, it is clear that a new global financial architecture is taking shape.

Why? Because stablecoins are more than just digital dollars - they are the backbone of today’s crypto markets and the foundation for a new global financial system. In short, understanding where stablecoins are today helps reveal where modern finance is headed next. 

Stablecoin Spotlight: What’s Top of Mind

According to new data, stablecoin transaction volume officially surpassed Visa for the first time ever.

This marks a massive turning point. Having revolutionized electronic payments half a century ago, Visa has long been the gold standard of global payments: well trusted and globally adopted. But stablecoins just moved more money. And they did it without a central operator, without banking hours, and with radically lower fees.

Beyond demonstrating true product-market fit, this highlights that the escalating network effects of stablecoins are now in full motion. The proof is in the real users, real value, and real velocity of money ramping up in real time. While policymakers debate what stablecoins might become, the market has already decided what they are: better than the traditional payments system.

What’s New with Stablecoins

1️⃣ Circle launches Circle Payment Network (CPN)

Circle has unveiled CPN, a proprietary orchestration layer for USDC and EURC transfers. CPN will link select banks to enable remittances, invoicing and payroll, while routing every transaction through Circle‑controlled rails. The launch signals an effort to dominate the whole stablecoin payment stack, aiming to capture processes that were previously provided by third parties building USDC‑based services.

2️⃣ European regulators to revisit MiCA amid growing US dollar dominance in stablecoins

Despite MiCA being only very recently implemented, there have been reports that the ECB believes that MiCA may not be fit for purpose and the legislation may require to be amended in light of US regulatory developments that could result in USD stablecoin supply significantly increasing which in turn would reroute European savings into the US.

3️⃣ Stablecoin competition explodes as banks and other institutions enter the arena

From JPMorgan to regional banks, financial institutions are now actively exploring or launching stablecoins to stay relevant in an increasingly programmable, around-the-clock financial environment. The next economic era will increasingly blur the lines between decentralized and traditional finance. 

In Other News

• Trump-backed Stablecoin USD1 teases airdrop, adding political weight to the stablecoin movement.

• Mastercard and Bleap will launch a non-custodial debit card that connects stablecoin payments with traditional payment rails.

Stablecoin Adoption Snapshot

1️⃣ Stablecoin Supply & Growth

Stablecoin supply continues to grow unabated, with USD₮ remaining the undisputed leader in total stablecoin supply. This continues the uninterrupted surge in stablecoin supply that has remained unbroken since October 2024.

• Total stablecoin supply: $231.3 billion (+0.53% from 30 days ago)

• USD₮ remains dominant: 63.9% market share ($147.8 billion)

• Stablecoins now account for over 1.09% of the US M2 money supply 

2️⃣ Adoption Continues to Surge

Stablecoin transaction volume has continued to climb the past two weeks, alongside a steady increase in new wallets holding stablecoins.

• $3 trillion in stablecoin transaction volume over past 30 days (via 646.7 million transactions)

• $450 billion in weekly transfer volume across major stablecoin projects

• 158.7 million wallets hold stablecoins, (up 2.9% from 30 days ago)

• 96.6 million wallets holding Tether's stablecoin, making it the clear leader

3️⃣ Stablecoin Liquidity by Chain

Ethereum and Tron remain the biggest hubs of stablecoin liquidity, with Tron seeing the biggest gains in recent weeks. At the same time, several smaller chains, including Base and Avalanche, saw their stablecoin supply drop off slightly. 

• 55.67% of all USD stablecoin liquidity is on Ethereum, followed by Tron at 30.29%

• Ethereum is continuing to lose market share of the stablecoin market, with the supply of stablecoins sitting on the network down by 3% in 2025

All data and charts in the Stablecoin Adoption Snapshot are courtesy of our partner, Token Terminal. Please note that while the underlying data points are accurate, certain chart segments may appear incomplete as Token Terminal continues integrating Solana. For fully verified data sets, refer to the figures provided throughout this newsletter.

Plasma: Where Money Moves Next

From stablecoins seeing more transaction volume than Visa, to issuers launching payment orchestration layers, the network effect of digital dollars is in full swing. As this momentum continues to surge, the blockchains stablecoins rely on will matter more than ever.

That’s why we’re building Plasma. As stablecoins transition from crypto-native assets to a global money standard, they need faster, cheaper, reliable and more programmable settlement infrastructure. Plasma is designed from the ground up for this future.

Whether you're a developer, investor, or simply watching where money moves next - Plasma is where the future is being built.

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