Stablecoins are now part of daily finance. See how to use them safely in 2025, avoid risks, and pick the right one for your region.
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$2.8 trillion by 2028, that’s the figure Bernstein Research projects for global stablecoin adoption.
In 2025, the retail enthusiasm has prompted payment giants like Stripe, Visa, and Mastercard to make provisions for stablecoin payments. Non-financial giants like Amazon and Walmart are considering launching their own stables.
A few adoption milestones in 2025 that need a mention here:
These recent developments in stablecoins in 2025 have secured their role as a medium of exchange, especially in cross-border payments. However, these tokens aren’t devoid of any vices.
There are notable risks associated with stablecoin payments, including depegging, centralization, blacklisting, etc. This article talks about everyday uses and risks of investing in stablecoins, and how you can avoid mistakes and choose wisely.
At the macro level, the passing of the GENIUS Act in the US and MiCA in the EU (in December 2024) has institutions opting for stables for cross-border payments, intra-bank value transfers, and as reserve assets. The corporate and banking sectors are also seeing them in a new light, as a solution to legacy payment woes.
Some of the major use cases to which stablecoins are being put lately include:
As remote work and the gig economy take over the work 4.0 phase, freelancers are opting for stablecoin payments to bypass cross-border restrictions and FX rates. In the EU, especially, Freelance and contract workers get paid directly in USDC or USDT from their US clients, and save themselves from hefty wire transfer fees, conversion losses, and delays.
Argentina, Turkey, Nigeria, and other third-world countries are emerging markets for these payments. With their home currency facing volatility, people are considering stablecoins as a good investment opportunity. Stables act as an inflation hedge, as they can store their wealth in a much more stable dollar and convert the tokens at their convenience.
Argentina faced triple-digit inflation at one point in time. Today, 60% of Argentina’s crypto transactions are in stables. Stablecoin savings are a new way of an inflation hedge in crypto and emerging markets.
Stablecoin remittances are faster, cheaper, and much more efficient than traditional remittances. Instead of the usual 3-5 day settlement times and 3-6% fees, stables allow cross-border transactions in a matter of a few minutes to an hour, without the need for any bank account, and incur negligible fees.
Google, Apple, Uber, Walmart, Shopify, and other e-commerce giants are either launching their own pegged tokens or are integrating stablecoin payments. Coinbase Payments has partnered with Shopify and now accepts 24/7 USDC transactions.
Travel cards or stablecoin-linked crypto cards backed by payment giants like Mastercard and PayPal are a hot choice among digital nomads and travellers. Stables allow programmable payments on the blockchain. This borderless cash is much needed for global travellers to spend without having to convert to the local fiat.
Stablecoins are of many kinds - crypto-backed, algorithmic, and fiat-backed stablecoins. Each of these has its own distinct issues. Some of the major stablecoin risks you should know about include:
Stables are backed by fiat or crypto in a 1:1 ratio. This is called pegging. At times, this peg can deviate or shatter completely, especially in the case of algorithmic tokens.
TerraUSD (UST)’s collapse in May 2022 erased almost $45 billion in token value and $400 billion from the market. Oftentimes, stablecoin reserves aren’t matched to the minting rate, which can trigger liquidity risks. The coin becomes an open ground for arbitrageurs to attempt trades for maximum profits, which leads to instability and depegging.
Read how stablecoin depegging occurs in detail in this article by Kraken.
Tether’s USDT and Circle’s USDC carry 70% of the market trades on their shoulders. And both of these tokens are centralised, i.e., governed by their parent companies, which can impose sanctions or freeze wallets under law enforcement.
Tether reportedly froze $26 million in the wallets of Russian cryptocurrency exchange Guarantex in March 2025. The GENIUS Act also legitimises those stables that have the provision for freezing wallets as part of the course of law. Tether has frozen assets worth $700 million across 112 wallet addresses after US authorities intervened. Tether claims it has frozen $2.5 billion in USDT between 2017 and 2025.
Regulations directly impact the trust of holders in a stablecoin. The GENIUS Act in the US gives great clarity on stablecoin payments. Many payment gateways, banks, and corporates have announced or issued their own stablecoins.
However, stablecoin regulation like MiCA did not have a very positive impact on the market. After MiCA was enforced in the EU in June 2024, USDT lost 28% of its market share due to non-compliance. Circle issued its own euro-backed stablecoin, and a bunch of other EUR players merged.
Also Read: 2025 Global Crypto Regulations – How Different Countries Are Approaching Cryptocurrencies
Wallet security is paramount for keeping your digital assets safe. Smart contract vulnerabilities in your platform’s code, or software risks in the coin itself, can pose high risks to stablecoin safety. Almost 72% of the users are unaware of the technical risks, such as:
Issuer transparency is also a valid concern because if the token supply isn’t exactly matched to the reserves, liquidity and depegging risks may rise.
A few quick tips on how to choose your stablecoin wisely in 2025:
Once you know what the main risks associated with stablecoins are, you can opt for new blockchain and AI crypto risk tools that can help detect and assess risks, prevent fund losses, and provide analytics for transparency.
Also Read: AI x Blockchain – How Autonomous Agents Are Taking Over DeFi
Wanna know the top choices based on the use cases you want to explore? Here’s a quick snapshot:
(The above list is informational and not financial advice)
Transparency, AML compliance, and liquidity remain the biggest factors deciding the adoption numbers for any stablecoin.
Stablecoins have a combined market cap of $208 billion, and these numbers are expected to grow several-fold in the coming years. The coming years will see greater institutional and enterprise adoption, and the retail remittances, cross-border payments, and DeFi remain the top use cases for stables.
If you are an investor seeking investment opportunities in stablecoins, check for compliance, diversify your assets, and settle payments instantly while sitting anywhere, any time.
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