As the year comes to an end, businesses in the payments industry are likely to reflect on their achievements and challenges. Meanwhile, the crypto sector remains focused on the future.
2024 has been a whirlwind of a year for the sector, marked by courtroom battles involving regulatory agencies and crypto platforms, along with a surge in total market value, driven in part by Donald Trump’s presidential election victory.
One standout area of the industry has been stablecoins, which have enjoyed a record-breaking year. According to Chris Harmse, Co-Founder and Chief Business Officer at BVNK, this growth stems from increasing adoption as a mainstream payment method.
Harmse said: “Around $17trn stablecoin transactions were made in 2024, with payments accounting for an estimated $5trn of those, which is over a third of the volume processed by Visa.”
He anticipates that this growth will persist well into the future. “In 2025, we predict that global payments volume will continue to move on-chain. Stablecoin payments will surpass $8trn, cementing their place as a core global payment rail,” he stated.
The role of regulation in stablecoin growth
Regulation plays a crucial role in supporting the continued growth of stablecoins.
Throughout this year, at events attended by Payment Expert representatives, conversations about crypto regulation have frequently highlighted the desire for standardised rules across markets. While achieving uniform regulations globally may be an unattainable goal, it’s a pursuit that could greatly simplify operations for everyone involved in the industry.
Harmse also shares this view, stating that in 2025 “we’ll see greater global harmonisation of rules around stablecoins in the world’s major economies in 2025. The US and the UK will pass new regulations, as they compete with places like Singapore, UAE and Europe to become hubs for digital asset innovation.”
This vision might not be entirely out of reach, especially with Trump showing more support for cryptocurrency than his predecessors. Meanwhile, efforts to attract startups and investors in the UK have intensified as the country seeks to address a significant debt gap, described by Chancellor of the Exchequer Rachel Reeves as a “black hole.”
“In Europe, we’ll see more MiCA-compliant regulated stablecoins offered, and new paths to market, where stablecoin issuers could enter into partnerships with Europe’s EMIs to issue MiCA-regulated stablecoins,” Harmse continued.
“Globally, we’ll see bifurcation in crypto policy, as regulators tackle stablecoins first as a form of electronic money, before moving onto more complex crypto use cases.”
Europe has already made significant strides in stablecoin applications, with cross-border transactions emerging as a primary focus. However, as Harmse highlighted, 99% of stablecoins by market cap are currently US Dollar-denominated.
He believes new regulations in regions like Europe and the UK will help Euro and GBP stablecoins gain momentum in the coming year. He said: “We’ll also see more providers offering local on and offramp between stablecoins and local fiat currencies, creating deeper, liquid markets for stablecoins internationally.”
Stablecoins as a global payout method
One of the significant advantages of crypto transactions, including stablecoins, is the speed at which payments can be processed – often far surpassing traditional methods. This efficiency makes stablecoins particularly well-suited for global payouts, especially for gig workers and freelancers who rely on quick access to their earnings.
According to Harmse, stablecoins are poised to become a cornerstone of global payouts. He explained: “In 2025, we’ll see the rise of stablecoins as a global payout method for individuals: as marketplace platforms enable their international creators, sellers, hosts, and contractors to get paid faster in stablecoins.”
The stablecoin orchestration layer
Harmse also highlighted the growing importance of what he calls the “stablecoin orchestration layer,” a development he sees as central to the future of payments.
“If 2023 was the year of blockchain infrastructure upgrades, 2024 is the year of blockchain abstraction,” he explained. As regulatory frameworks instil greater trust in stablecoins, more businesses are eager to adopt them.
However, many companies prefer not to deal with the complexities of choosing blockchains, managing gas fees, or configuring wallets.
This is where stablecoin payment orchestration comes in. Companies involved in this anticipate playing a pivotal role in providing the infrastructure that simplifies stablecoin transactions, making them as seamless and straightforward as traditional bank payments.
Harmse concluded: “We’ll see a shift towards an easier, more accessible way for businesses to use stablecoins, just like making bank payments.”
