Total stablecoin transactions reached $10 billion in August, up from $6 billion in February.
In July, the United States passed the GENIUS act, a bipartisan bill establishing a federal framework for the issuance, trading, and custody of stablecoins. The legislation set off a flurry of new stablecoin launches from leading financial services firms, as well as potential launches from a wide range of companies and government agencies.
A report from Artemis, a blockchain firm, highlighted the connection between the passage of the GENIUS act and the resulting surge in stablecoin activity. However, the report also noted that stablecoin usage had already been on a steady upward trajectory. According to Artemis, stablecoin payment volumes in August more than doubled year-over-year, and could reach $122 billion annually if current trends continue.
Increasing Business Adoption
One of the most notable findings from the Artemis study was that business-to-business (B2B) payments have surpassed peer-to-peer (P2P) transactions as the leading use case for stablecoins. B2B payments have surged 113% since February and now account for roughly two-thirds of the stablecoin market.
This surge in B2B activity is also likely linked to the passage of the GENIUS act, as a better-regulated U.S. stablecoin market is proving attractive to many organizations. In a separate study from Ripple, many financial leaders indicated they are open to using stablecoins within the next three years, and roughly a third said they already use them in their day-to-day operations.
The top three use cases cited were cross-border payments, trade settlement, and serving as a traditional bank alternative.
Adding Cross-Border Functionality
Stablecoins have long been touted as a solution to the inefficiencies of cross-border payments. These digital assets offer immediate settlement, low fees, full visibility, and stable value—a strong alternative to the correspondent banking system, where payments are often delayed in a multi-step process that can be both risky and expensive.
This cross-border capability is one of the main reasons why many financial services organizations have launched or considered launching stablecoins. For example, Zelle, which is owned by seven major U.S. banks, recently floated its plans to launch a stablecoin.
While Zelle is currently the largest P2P platform in the U.S., its users must have a bank account to send funds. Adding a stablecoin to its product list could allow the platform to expand its footprint beyond U.S. borders.
