The evolution of stablecoins and their adoption across industries

Stablecoins were first introduced in 2014 as a response to the volatility of cryptocurrencies such as Bitcoin. The idea was simple: create a digital token that could move instantly on blockchain rails but hold a stable value. By pegging to assets like the US dollar or euro, stablecoins offer a practical way to combine the efficiency of crypto with the predictability of fiat money.

What began as an experiment quickly gained traction. By 2018, USDC was launched, bringing a greater focus on transparency and regulation. The boom of decentralised finance (DeFi) in 2020 further accelerated adoption, with stablecoins providing the liquidity that powered lending and trading protocols. By 2023, annual stablecoin transaction volumes exceeded $10 trillion, signalling their arrival as a mainstream payment tool.

Why stablecoins are gaining traction

The success of stablecoins lies in their ability to solve real problems. Traditional international transfers can take days, involve several intermediaries, and come with high fees. Stablecoins move in minutes, 24/7, and at a lower cost.

They also remove exposure to price volatility, which makes them suitable for everyday business use. A merchant accepting Bitcoin risks losing value during settlement, but with stablecoins the amount received is predictable.

‍Types of stablecoins

Stablecoins maintain their value in different ways, each with its own strengths and risks:

• Fiat-backed stablecoins hold reserves of fiat currency or equivalent assets. Examples include USDC and USDT. These are the most widely used and trusted by institutions.
  
• Crypto-collateralised stablecoins such as DAI are backed by other cryptocurrencies, often over-collateralised to absorb volatility. They are widely used in DeFi ecosystems.
  
• Algorithmic stablecoins rely on supply and demand mechanisms to maintain their peg. Some have faced challenges, most notably TerraUSD in 2022, which highlighted the risks of algorithmic models.
  
  

The market has gravitated toward fiat-backed stablecoins, especially those with transparent audits and regulatory oversight. Under the EU’s MiCA regulation, USDT is not available to European residents, since its issuer is not compliant with European regulations. This is why Payhound offers its European clients fully compliant alternatives such as USDC.

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Adoption across industries

Payments and remittances

Stablecoins are transforming cross-border payments. Workers sending money home avoid costly wire transfers, while businesses can settle globally with speed and certainty. According to McKinsey, tokenised money flows, including stablecoins, already account for more than $27 trillion annually.

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iGaming and affiliates

Operators and affiliates deal with high transaction volumes and global partners. Stablecoins provide instant deposits, payouts and commissions, all while reducing operational costs. For fast-moving markets like iGaming, they help remove the bottlenecks of traditional finance.

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Institutional finance

Corporates and funds are adopting stablecoins for treasury and settlement. Regulatory frameworks are helping, with the EU’s MiCA regulation and the US GENIUS Act offering clear rules for issuers. This is paving the way for wider institutional use.

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High-value transactions

Real estate deals and luxury purchases are increasingly conducted in stablecoins. The ability to close large international transactions quickly and securely appeals to both buyers and sellers.

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What the numbers show

The adoption of stablecoins is reflected in the data:

• In 2023, stablecoins processed more than $10 trillion in transactions, according to the Bank for International Settlements.
  
• Stablecoins accounted for over $1.3 trillion in fiat inflows to the crypto economy in 2025 (Chainalysis).
  
• Dollar-backed stablecoins dominate the market, representing 99% of fiat-backed issuance (JPMorgan Research).
  

These figures show that stablecoins are no longer an experiment. They are an essential part of global payments.

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How Payhound supports stablecoin adoption

At Payhound, we see stablecoins as a practical bridge between digital assets and traditional finance. For businesses across industries, they bring speed, predictability and global reach.

We currently support USDC (ERC20 and SOL) and USDT (ERC20, TRC20, SOL). Due to regulatory requirements, USDT is only available to clients outside the EU. This ensures businesses have the flexibility to choose the stablecoin rails that best fit their operations.

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Our platform provides:

• Instant conversion of stablecoins to fiat
  
• Locked exchange rates for predictable settlements
  
• Integration with existing systems through API
  
• Comprehensive monitoring for transparency and security
  

By combining stablecoin flexibility with regulated infrastructure, Payhound enables companies to adopt digital payments confidently and without disruption.

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Looking ahead

Stablecoins have matured into one of the most significant payments in digital finance. They are reshaping industries that rely on fast, reliable and international settlement. From remittances and institutional finance to iGaming, affiliates and real estate, the demand for stablecoin payments continues to grow.

With Payhound, businesses gain the support and infrastructure to integrate stablecoins securely, ensuring they remain competitive as digital payments become the global standard.

For more information, contact us at info@payhound.com or visit www.payhound.com.