Stablecoins are stealthily becoming the go-to route for transferring money across the internet. Think of them as a high-speed toll road built on blockchain, overtaking ageing networks like Visa and Mastercard for on-chain transactions. Their value is pegged to a steady asset, typically the U.S. dollar, which offers users a solid anchor when conventional cryptocurrencies sway like ships in rough seas.
Image 1: (Source: criptomo)
These digital assets, typically pegged to the US dollar, provide a stable alternative in a crypto ecosystem known for its rollercoaster volatility. While Bitcoin and Ethereum swing wildly, stablecoins offer users a firm footing—like walking a straight path while others navigate a storm.
And the numbers don’t lie. Stablecoins have now surpassed both Visa and Mastercard in blockchain transaction volume by roughly 7%, establishing themselves as a foundational layer in the online payments space. That kind of momentum is hard to ignore—it signals not just growth, but a shift in the entire ecosystem of money.
Behind the scenes, a key enabler of this transformation is Alchemy, a tech powerhouse quietly building the infrastructure that keeps the stablecoin machine humming. Noam Hurwitz, their engineering lead, likens this shift to someone “hitting fast-forward on how payments work.” It’s not just speed—it’s a complete redesign.
Major platforms like PayPal and Stripe are jumping onboard for a simple reason: stablecoins let them move funds instantly—even outside of banking hours. Gone are the delays, fees, and cutoffs of traditional rails. Think of it as a postal service that delivers round-the-clock, rain or shine.
The Infrastructure Behind the Movement
Alchemy is the invisible backbone here, powering the stablecoin capabilities for Robinhood Wallet, Visa, Circle, Stripe, and more. According to Hurwitz, they’re not just providing plumbing—they’re orchestrating a smarter financial rhythm, where transactions just flow.
And stablecoins are no longer limited to casual transfers. They’re becoming multi-functional financial tools. Tether (USDT), for example, invested almost $113 billion in U.S. Treasuries last year and generated around $13 billion in returns—elevating its role well beyond just a dollar substitute.
Beyond investments, stablecoins are gaining traction in areas like international payments and decentralised prediction markets, such as Polymarket. Slowly but surely, they’re embedding themselves into the core of institutional financial strategies.
But there are challenges. Blockchain networks are still fragmented, making smooth interoperability difficult. Institutions want speed and reliability, but the current systems don’t always deliver. Hurwitz points out a key concern—can these still-maturing networks support the demands of large-scale, high-stakes financial operations?
Even so, big banks aren’t standing on the sidelines. JPMorgan recently unveiled Kinexys, a blockchain-based tokenized deposit system. In essence, it allows real-time banking with around-the-clock access and seamless digital settlements—bringing traditional finance closer to crypto’s speed.
Challenges on the Road to Mass Adoption
On the policy front, the U.S. Senate has passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), laying down regulatory tracks to help tame the fast-moving crypto frontier. This gives both established banks and startups the confidence to innovate within clear legal bounds.
Looking to the horizon, Hurwitz believes most financial operations will migrate to Layer 2 blockchains—the faster, more scalable networks that build atop existing blockchains. He imagines a world where these systems talk to each other effortlessly, creating a truly borderless, frictionless global payment web—all anchored by stablecoins quietly doing the hard work in the background.
Image 2 (Source: Blocktrade)
It’s a bold vision: a global financial grid powered by programmable dollars that never sleep. But the path forward isn’t without hurdles.
The Bank for International Settlements (BIS), in its 2025 report, expressed skepticism. Stablecoins, it argued, don’t meet all the essential traits of traditional money—namely uniqueness, flexibility, and structural integrity. They may work well in niches, but replacing fiat currency entirely? Not just yet.
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Still, there’s no denying that stablecoins are shaking up the financial landscape. With companies like PayPal, Stripe, and JPMorgan getting involved—and regulators starting to draw up clear roadmaps—digital dollars are stepping into the spotlight.
This is just the beginning. The tools still need refining, the networks need to connect more smoothly, and regulatory frameworks must continue to evolve. Yet one thing is clear: stablecoins are no longer just background noise in the crypto orchestra—they’re becoming the lead instrument.
