Stablecoin Transactions Hit $35 Trillion Annually, Yet Real Payments Account for Only 1%

Last year, stablecoin activity on blockchain networks reached an astronomical $35 trillion in transaction volume. However, a groundbreaking analysis from McKinsey and Artemis Analytics reveals a sobering reality: only about 1% of this massive figure actually represents genuine real-world payments. The majority of stablecoin transactions are driven by cryptocurrency trading, internal protocol transfers, and other activities that never reach end users.

The report pinpointed approximately $390 billion in authentic payment activity—covering vendor payments, employee payroll, international remittances, and capital market settlements. While this represents significant growth in stablecoin adoption, it accounts for merely 0.02% of the global payments market, estimated at over $2 quadrillion annually.

Separating the Signal from the Noise

The $35 trillion headline often circulates in crypto discussions as evidence of stablecoins’ competitive strength against traditional payment networks like Visa and Mastercard. Yet this comparison lacks context. The vast majority of stablecoin transaction volume consists of internal transfers, automated protocol-level functions, and speculative trading activity that doesn’t translate into actual commerce.

McKinsey and Artemis researchers emphasize that understanding this distinction is critical. The inflated volume figures can mislead stakeholders about stablecoins’ current market penetration. Traditional payment firms including Visa and Stripe are increasingly exploring stablecoin infrastructure, while projects like Circle and Tether promote their tokens as solutions for expensive and slow international transfers. These initiatives will likely drive genuine payment activity upward, but the baseline is currently much lower than aggregate transaction volumes suggest.

Where Stablecoins Are Actually Being Deployed

The research identified three primary use cases driving authentic stablecoin payments:

Business-to-Business (B2B) transactions represent the largest segment, generating approximately $226 billion in annual volume. Companies use stablecoins to streamline supplier payments and cross-border commerce settlements.

Global payroll and remittances account for roughly $90 billion yearly. Workers in developing economies increasingly receive wages through stablecoins, while families rely on these tokens to send money across borders with lower fees than traditional wire services.

Capital markets activity contributes approximately $8 billion, primarily through automated settlement functions and institutional fund transfers on blockchain networks.

The Path Forward

McKinsey and Artemis Analytics stress that low current adoption rates don’t undermine stablecoins’ long-term potential. Instead, accurate baseline measurements help the industry understand its true position and identify growth requirements. As infrastructure improves, regulatory clarity emerges, and institutional participation accelerates, the proportion of genuine payment activity relative to total stablecoin volume will likely expand significantly. The $35 trillion annual figure serves as a reminder that growth is occurring, but distinguishing real economic activity from pure trading volume remains essential for informed market assessment.