The stablecoin market has surpassed a record high of $310 billion (approximately 449 trillion won). This represents a dramatic growth of over 70% compared to a year ago. This growth is significant in that it is driven by increased real-world usage, not speculative price fluctuations. Stablecoins are now moving beyond mere auxiliary tools within the cryptocurrency market to become a key pillar of the global financial infrastructure.
Stablecoins are digital assets designed to minimize price volatility. Unlike Bitcoin or Ethereum, stablecoins are backed by fiat currencies like the US dollar or real assets, or their price is fixed using algorithms. This structure allows them to be utilized in real-world financial applications such as payments and remittances. The key difference between stablecoins and existing cryptocurrencies is that the amount is not lost during the remittance process and the recipient receives the exact value.
The current market is effectively a two-party system. Tether's USDT holds approximately $172 billion, while Circle's USDC accounts for over 80% of the total market, with approximately $145 billion. This demonstrates that reliability and distribution networks are becoming more important criteria for selecting stablecoins than technological perfection.
The area where stablecoins have spread most rapidly is cross-border payments. Traditional international remittances require multiple financial institutions and clearing processes, taking several days and incurring fees of 2-3%. In contrast, stablecoins allow payments to be completed within minutes, with fees as low as less than 1%. Some global remittance services claim to have reduced costs by up to 95%.
Utilization in high-inflation countries is also notable. In Argentina and Venezuela, stablecoins are increasingly being used as a store of value instead of their local currencies. This demonstrates how digital assets can serve as an alternative to increasing financial accessibility in environments with inadequate banking infrastructure.
Institutional investors and companies are also moving quickly. According to a 2025 report by global infrastructure company Fireblocks, more than half of financial institutions are already using stablecoins in their practices, while the remainder are considering adoption or conducting pilots. Applications are intertwined with traditional finance, including cross-border remittances, supply chain payments, and business-to-business settlements.
Even corporate finance departments are beginning to recognize stablecoins as a financial management tool, going beyond mere payment methods. While banking systems restrict fund movements on weekends and public holidays and expose users to exchange rate risks, stablecoins enable immediate settlement 24 hours a day. The ability to monitor fund flows in real time also offers significant advantages for companies.
What's interesting is that institutions are choosing stablecoins over new cryptocurrencies as the starting point for their blockchain experiments. This is because stablecoins are closer to "digital cash," which most closely resembles traditional currency flows. They are considered a viable option for testing the effectiveness of blockchain without drastic price fluctuations.
Stablecoins are also a key asset class in the DeFi market. Major platforms like Aave and Curve use stablecoins as the basic unit of deposit and lending, and experiments with yield-generating stablecoins that offer a fixed rate of return are ongoing. The fact that more than half of all DeFi assets are comprised of stablecoins underscores the importance of this asset class.
Despite this, the market size still falls short of $1 trillion. Analysts suggest that the current market is closer to an "accumulation phase," as changes in financial infrastructure tend to occur gradually and then rapidly expand after a certain point. For full-scale mass adoption, regulatory-friendly on- and off-ramps connecting banks and wallets, payment tools for merchants, and user-centric interfaces that mask the complexities of blockchain are needed.
Institutional movements are reinforcing trust. The European Union's MiCA and the US's GENIUS Act require stablecoins to be 100% funded with high-quality assets and undergo regular audits. This signals that stablecoins are increasingly entering a regulatory framework similar to that of banks.
Technology is quietly transforming finance. Unlike Bitcoin, which attracts attention due to its rapid price fluctuations, stablecoins are expanding their influence through practical use. The utility experienced by a wide range of stakeholders, from institutions and corporations to developers and users in emerging markets, demonstrates the potential for this asset class to remain the most realistic link between cryptocurrencies and traditional finance.
