Stablecoins: The Basics
- info122712
- Jan 3
- 2 min read
Stablecoins are a class of digital assets designed to maintain a stable value, most commonly by being pegged to a fiat currency like the US dollar. Unlike traditional cryptocurrencies that experience significant price volatility, stablecoins aim to combine the price stability of cash with the speed, transparency, and programmability of blockchain technology:
24/7 settlement
Instant finality
Global accessibility
Programability
Capital efficiency
These digital assets have become a foundational layer of modern digital finance, enabling everything from crypto trading and cross-border payments to decentralized finance and institutional settlement.
Global stablecoin usage has expanded rapidly, signaling that these assets are now functioning as real financial infrastructure rather than speculative instruments. According to data published by Visa Economic Empowerment Institute, global stablecoin transaction volume increased from over $3.5 trillion in 2023 to more than $5.7 trillion in 2024.
This growth reflects rising adoption across payments, trading, and on-chain settlement, particularly in regions where speed, cost efficiency, and access to US dollar liquidity are critical
At the same time, the total supply of stablecoins has expanded to match this demand. Currently in 2026, total stablecoin supply exceeds $300 billion, following roughly $100 billion of net growth during the previous year. This supply acts as an institutional liquidity float, representing readily deployable capital used for trading, settlement, treasury management, and cross-border flows.
Unlike idle cash in legacy systems, stablecoin balances can be mobilized instantly across exchanges, counterparties, and blockchain networks. The growth of this float underscores why institutions increasingly view stablecoins not just as digital cash equivalents, but as an essential component of modern market structure and OTC liquidity management.
