Stablecoins Expand in Payments, Yet Most Activity Remains Internal

Why It Matters

Understanding the split between internal and external stablecoin activity clarifies where the technology delivers real economic value and where it still needs to prove itself. As B2B and consumer payments accelerate, stablecoins could reshape cross‑border transactions, reduce costs, and increase financial inclusion—making this shift highly relevant for fintech innovators, regulators, and anyone involved in the future of payments.

Summary

The episode examines a McKinsey-Artemis Analytics report showing that while stablecoins process roughly $35 trillion a year, only about $390 billion is tied to real‑world payments, with most activity still internal to exchanges, custodians, and protocols. External payment use is growing fast, especially B2B transactions which jumped 733% to $226 billion, alongside consumer‑to‑consumer, consumer‑to‑business, and payroll/remittance flows. Cryptocurrency analyst Joel Hugentobler highlights stablecoins’ 24/7 liquidity, speed, and programmable controls as key benefits, but notes that broader adoption hinges on better user experience and stronger merchant incentives. He points to emerging compliance work and card‑wallet partnerships as early steps toward wider external use.