CAPE TOWN, 8th August, 2026 (WAM) -- The market capitalization of stablecoins nearly tripled between 2021 and 2025 but has remained relatively flat over the last year at around $300 billion, according to a top IMF official.
''Nearly 99% of stablecoins are denominated in US dollars. Reserves are largely held in short-term T-bills and reverse repos, although some issuers also use less liquid and riskier backing assets,'' said Dan Katz, IMF First Deputy Managing Director, in remarks at the University of Cape Town, South Africa.
According to some sources, total stablecoin transaction volume exceeded $30 trillion in 2025, of which $6.1 trillion was cross‑border. However, the bulk of this activity remains within the crypto ecosystem, and much of it is driven by bots and algorithmic arbitrage.
''The Bank for International Settlements estimates that there were only $390 billion in payment-related stablecoin flows in 2025. This is in the context of a global cross-border payments market that is estimated at around one quadrillion U.S. dollars annually,'' he added.
He noted that advances in artificial intelligence may also accelerate the adoption of stablecoins.