Stablecoin at $35 Trillion in Volume but Little Help in Real Payments

The ability to provide fast transactions is one of the main promises of stablecoins, but the data tells a different story. According to a new report by McKinsey and Artemis Analytics, the volume of stablecoin transactions reached over $35 trillion last year, but most of these are still not used in actual daily payments.

The focused study contains an impressive finding: out of $35 trillion in blockchain transactions, only about 99% are not directly related to payments. Researchers estimate that only $390 billion reflects real commercial activity, such as supplier payments, payroll processing, and remittances for overseas workers.

Large Volume, But Limited Actual Application

To understand the strength, context is necessary. The global payment market has already reached over $2 quadrillion per year. In this scale, the $390 billion from stablecoins accounts for only 0.02% of the entire market—a very small fraction that shows how much the mission of digital currencies in financial services is still in its early stages.

The significant portion of stablecoin volumes actually comes from traders and internal operations. Crypto enthusiasts use stablecoins for trading across various exchanges, not as a means of payment. Many transactions are also protocol-level operations that have no direct influence on end users.

However, this situation does not mean that stablecoins lack potential. Instead, traditional payment companies like Visa and Stripe are beginning to explore blockchain infrastructure. Stablecoin issuers such as Circle and Tether continue to offer their tokens as alternatives to long and costly international remittance systems.

Where Stablecoins Are Really Used

The McKinsey-Artemis report identifies three main uses:

Business-to-Business Payments: B2B transactions lead in actual stablecoin applications, with an estimated $226 billion annually. Businesses see the value in quick settlement and lower transaction costs.

Payroll and International Remittance: The global workforce relies on $90 billion in stablecoin-based payroll and remittance services. For workers sending money to their families abroad, stablecoins offer a faster alternative than traditional money transfer services.

Capital Market Activities: Automated settlements in financial markets account for $8 billion of activity. Blockchain infrastructure provides 24/7 settlement capabilities that are not available in traditional systems.

Long-Term Potential But With Challenges

The data reflects a more accurate baseline for the industry. While headline numbers are impressive, real progress is measured by how stablecoins are becoming essential tools for businesses and individuals who need fast and inexpensive transactions.

The gap between $35 trillion and $390 billion is not a collapse of the industry, but a clarification of where the true opportunities lie. For stablecoins to become a mainstream payment solution, adoption at the consumer level needs to increase, and regulatory clarity across different countries must be strengthened. But the momentum is already there—the partnerships of traditional payment giants demonstrate serious interest in the future of blockchain-based payments.