The stablecoin market has quietly grown into a financial giant that now rivals some of the world’s biggest payment systems. With a total market value of $308 billion as of October 2025, these digital dollars have been expanding for 25 straight months and show no signs of slowing down.
To put this growth in perspective, stablecoins now handle more transactions than you might expect. Last year alone, they processed $46 trillion in total volume, which doubled from the previous year. That’s like handling five times more money than PayPal moves around.
Even more impressive, monthly volumes approached $1.25 trillion in September 2025, which is getting close to what the entire ACH banking network handles.
Two major players dominate this space like a friendly duopoly. Tether leads the pack with $183 billion in circulation, while USDC follows with $75 billion. Together, they control about 87% of the entire stablecoin market. Think of them as the Coca-Cola and Pepsi of digital money.
What makes this particularly interesting for traditional banks is how stablecoins are being used. Unlike other cryptocurrencies that people buy hoping to get rich quick, stablecoins serve as actual digital cash.
People use them to send money across borders, make purchases, and store value without the wild price swings that make other digital currencies feel like roller coasters. However, savvy investors understand that chasing digital assets often leads to disappointment when excitement fades, making stablecoins’ stability more appealing for practical use.
Banks are starting to pay attention because stablecoins now hold over $150 billion in U.S. Treasury bonds, ranking them as the 17th largest holder globally. That’s more than many entire countries own.
Plus, more than 1% of all U.S. dollars now exist as tokenized stablecoins, which sounds small but represents a massive shift in how money moves. This growth has pushed stablecoin market dominance to 7.80% from 7.45% just one month earlier.
Looking ahead, experts predict the stablecoin market could reach $500 to $750 billion in the coming years, with some forecasts suggesting $2 trillion by 2028. With regulatory clarity increasing through legislation like the bipartisan GENIUS Act, the path forward for stablecoin growth appears more certain than ever.
Whether this will completely upend traditional banking remains unclear, but one thing is certain: digital money is no longer just an experiment. It’s becoming a real alternative that banks can’t ignore.
