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In a historic shift for global finance, stablecoins have officially surpassed Visa in annual transaction volume, signaling a major milestone for the crypto economy. However, while the headline numbers suggest rapid mainstream adoption, experts are cautioning that the rise brings significant risks, particularly around redemption pressure during market stress.
According to new data from blockchain analytics firm ChainPulse, stablecoins like USDT, USDC, and DAI processed over $10 trillion in transactions over the past twelve months, edging out Visa’s reported $9.8 trillion in payment volume. The explosive growth of stablecoins has been fueled by their increasing use in cross-border payments, decentralized finance (DeFi), and digital commerce.
“Stablecoins are no longer niche instruments,” said Laura Kim, a senior analyst at ChainPulse. “They are now integral to the global flow of money — but that scale comes with new systemic risks.”
One of the chief concerns is redemption pressure — the risk that, in times of market panic or regulatory crackdowns, holders could attempt to cash out en masse, forcing stablecoin issuers to liquidate reserves at unfavorable prices. Such a scenario could destabilize not just the crypto market, but ripple into traditional financial sectors linked to stablecoin reserve assets like Treasury bills and corporate bonds.
In a recent report, the Financial Stability Board (FSB) warned that major stablecoins could “amplify shocks” in times of financial stress if their issuers are unable to meet large-scale redemption demands quickly and transparently.
Some issuers, including Circle (issuer of USDC), have responded by enhancing transparency around their reserves and establishing liquidity facilities. Others, such as Tether (issuer of USDT), continue to face scrutiny over the quality and composition of their backing assets.
Despite the risks, industry leaders argue that stablecoins are fundamentally strengthening the financial system by making money movement faster, cheaper, and more accessible.
“Stablecoins are solving problems traditional finance has failed to fix for decades,” said Marcus Reid, CEO of crypto payments firm FlowNet. “The focus now must be on building trust, transparency, and robust redemption mechanisms.”
Regulators across the U.S., Europe, and Asia are intensifying their focus on stablecoins, with new rules expected to mandate regular audits, reserve disclosures, and operational safeguards.
As stablecoins continue their rise and cross traditional financial thresholds, the coming years will test whether the sector can maintain its momentum — or whether cracks under pressure will reveal vulnerabilities that regulators have long warned about.
