Making the Leap to Broader Use Cases Over a decade after they first came into existence, stablecoins are now one of the most prominent use cases of blockchain technology. Not only do they provide trading liquidity, but they offer access to USDpegged tokens in a dollar-hungry global economy. They also strive to enable faster and cheaper global payments 24/7. As of December 2024, stablecoins have achieved $12 trillion in transfer value, up from $7 trillion in 2023, a milestone driven by declining fees and improved scalability. For context, Visa’s payment volume for the fiscal year 2024 was $13.2 trillion, suggesting that stablecoins may surpass this level in the near future.23 With that said, it is important to note that these metrics are not directly comparable, as Visa transactions largely reflect consumer spending rather than trading flows or remittances. Both active addresses and the number of stablecoin transfers achieved a new high in October 2024, with the latter reaching a total of approximately 4.4 billion. However, the number of transactions is still a far cry from traditional payments companies, as Visa processed 234 billion transactions in 2023. Nevertheless, the endurance of stablecoins speaks to not only digital assets trading but also other use cases—primarily remittances, cross border payments and, ultimately, the desire to easily access dollars as a store of value versus other currencies. It is no coincidence that the bulk of stablecoins are pegged to the USD. A recent survey conducted by Castle Island Ventures in emerging market countries reported that 47% of respondents used stablecoins to save in dollars, 43% for better conversion rates, and 39% to earn yield.24 0 1 2 3 4 5 6 7 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Trillions Stablecoin 1-Year Transfer Value (Ethereum) Source: Fidelity Digital Assets via Coin Metrics, 12/11/24. Fidelity Digital Assets® 2025 Look Ahead | 22
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