- Stablecoins now surpass Visa in weekly transaction volume as major firms like Stripe and Mastercard drive global adoption.
- The UAE is fast-tracking stablecoin growth with a dirham-backed token and multibillion-dollar crypto investments.
- Chamath Palihapitiya predicts dollar stablecoins will dominate 2025 as regulators and institutions align worldwide.
Stablecoins will play a crucial role in determining the direction of digital banking, according to Chamath Palihapitiya. In accepting stablecoins, he cited significant actions taken by Visa, Mastercard, and Stripe. He predicted that dollar-denominated tokens might be the largest financial success of 2025. It is noteworthy that banks can now issue and manage stablecoins thanks to Visa’s Tokenized Asset Platform.
Source: Chamath Palihapitiya
Mastercard followed by enabling global merchants to accept stablecoins. Moreover, Stripe launched a pilot to simplify access to U.S. dollars through stablecoin payments for companies outside the U.S. and EU. Stablecoins now process more weekly transactions than Visa, signaling a seismic shift in digital payments.
Global Adoption Accelerates
Besides U.S. firms, international players are also ramping up their involvement. The UAE positions itself as a digital asset hub. This week, according to Reuters, Abu Dhabi’s sovereign wealth fund ADQ, IHC, and First Abu Dhabi Bank (FAB) revealed plans for a new dirham-backed stablecoin. Consequently, the UAE is strengthening its foothold in the stablecoin market. The proposed token, subject to regulatory approval, will be fully backed and issued by FAB. It will serve both consumers and institutions across diverse payment use cases.
Additionally, AE Coin — the country’s first dirham-backed stablecoin — was introduced in December. Moreover, MGX’s $2 billion investment in Binance further underlined the UAE’s aggressive crypto strategy. These developments confirm the region’s intent to dominate the evolving stablecoin ecosystem. With regulatory clarity and infrastructure in place, adoption is accelerating rapidly.
Stablecoins as the Second Killer App
According to Palihapitiya, stablecoins now rank just behind Bitcoin in terms of real-world utility. He explained how the latest deep dive from his team aims to demystify stablecoins. The report highlights the drivers behind large-scale investment by Visa, Mastercard, and Stripe. Hence, the crypto market is no longer just speculative. It offers real solutions for cross-border payments and financial inclusion.
The U.S. government is also prioritizing clear regulations for stablecoins in 2025. This alignment between private innovation and public policy could fuel exponential growth. With powerful stakeholders aligning globally, stablecoins are no longer a niche. They are becoming central to the future of finance.
