In the ever-evolving world of crypto, stablecoins have emerged as one of the most critical and practical innovations in the DeFi space. While Bitcoin and Ethereum often steal the spotlight, it’s stablecoins that quietly power much of the digital economy - from trading and remittances to everyday payments and DeFi protocols.

Active stablecoin wallets grew 53% between February 2024 and February 2025, according to data from Artemis and Dune. The global stablecoin market cap has now surpassed $247 billion, a 54% increase year-over-year, and stablecoins processed over $35 trillion in transactions during this 12-month period - more than double Visa’s annual volume!

So, what are stablecoins? And why are they becoming so important to both traditional and decentralized finance?

A stablecoin is a type of cryptocurrency designed to maintain a stable value, usually by being pegged to a real-world asset - such as the U.S. dollar, the euro, or even gold.

Stablecoins aim to bridge the gap between traditional finance and the crypto ecosystem, offering a digital currency that avoids the volatility associated with assets like Bitcoin or Ethereum. This makes them ideal for a range of applications: from payments and remittances to saving and settlements.

Stablecoins aim to bring stability to crypto markets by anchoring their value to an external reference point. Historically, physical assets like gold served as the backbone of economic stability:

Similarly, stablecoins are designed to offer trust, stability, and reliability in the digital space - providing users with a secure and transparent way to store or transfer value.

Stablecoins have become a cornerstone of modern crypto infrastructure, offering the stability of traditional currencies with the speed, programmability, and borderless nature of blockchain technology. Their application shines through in a few specific areas:

Stablecoins are revolutionizing cross-border payments. Traditional remittance services often take days and charge high fees, due to the number of intermediaries transactions need to pass through. Stablecoins, however, enable near-instant, low-cost transfers, facilitated entirely by a blockchain. In countries with unstable currencies, this can be life changing.

Stablecoins are unlocking faster, global payments for both businesses and consumers. Consumers can pay for goods with stablecoins – removing the hassle of currency exchange and reducing the costs they have to pay to access international product and services. Businesses can accept crypto as payment without volatility risks, with platforms like Monolo instantly converting crypto payments into stablecoin settlements.

Stablecoins are a key trading tool, allowing investors to exit volatile positions without needing to off-ramp to fiat. Most crypto exchanges use stablecoins like USDT and USDC as base pairs.

The role of stablecoins is expanding fast, and not just within Web 3. Stablecoins are offering real-world utility that can, and is being implemented right now:

As stablecoins grow in usage, influence, and market capitalization, governments around the world are racing to establish clear legal frameworks to govern them. In the United States, a major regulatory turning point arrived in 2025 with two pivotal pieces of legislation that defined the future of dollar-backed digital assets.

U.S. president Donald Trump signed a landmark bill to regulate cryptocurrency in July 2025. The legislation, called the GENIUS act, is the first major law to provide a legal framework for stablecoins. The act includes key features such as licensing requirements for stablecoin issuers, monthly disclosures by issuers and regulatory collaboration with the Federal Reserve, FDIC and the OCC to oversee risk, payment infrastructure and financial stability.

U.S. lawmakers passed the Clarity for Stablecoins Act in 2025 to create clear legal frameworks for issuance and use. This act complements the GENIUS act by defining stablecoins legal status, outlining use case protections and providing interoperability guidelines. The U.S. have started taking definitive steps forward with the introduction of stablecoin specific laws, providing a level of clarity for both issuers and users.

Whilst the US is advancing regulation, they're not the only ones. This is a trend seen across the world:

Stablecoins are no longer just a crypto convenience - they're becoming a cornerstone of modern finance. As adoption grows and transparency improves, their role, utility and use-cases continue to expand.

The GENIUS Act has already catalyzed institutional adoption. According to Fireblocks’ 2025 Global Insights report, more than 300 banks and payment providers are now actively running stablecoin infrastructure. These institutions process over 35 million stablecoin transactions each month, with regulated stablecoins accounting for roughly 15% of the global volume. Legislation has also helped RLUSD, and other compliant coins gain ground in regulated markets.

With growing institutional interest and clearer regulatory frameworks, stablecoins are poised to become a lasting and essential bridge between traditional finance and the decentralized future.

At Jiggle, we believe crypto should be accessible, secure, and practical. That’s why we’ve made it easy to buy, store, send, and pay with stablecoins right from your Jiggle Wallet.

Got more questions? Reach out to our agents via our live chat. Alternatively, contact us in the Jiggle app or send us an email at [email protected]. Whatever you chose, our agents are available 24/7 and will be able to assist you!

Jiggle is not affiliated with any third-party platforms, external links, or any other third-party resources mentioned in this article. As such, Jiggle cannot guarantee the performance of third-party products or services, or that the steps shown and the information provided will always be accurate.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risks. Always conduct your own research before investing.