The Great Paradox of Stablecoins in the Past: Billion-Dollar Volume Without Real Payment Translation

The numbers seem impressive: stablecoins moved more than US$ 35 trillion in transactions during 2024. However, there is a crucial detail that rarely makes headlines. According to a new report by consulting firm McKinsey in partnership with Artemis Analytics, only about 1% of this colossal volume reflected genuine payments in the real world. This finding exposes one of the biggest paradoxes of the cryptocurrency ecosystem: the glaring discrepancy between transactional activity and practical use.

Unveiling the Reality Behind the Massive Numbers

Joint analysis by the two institutions estimated that approximately US$ 380 billion of past activities represented legitimate payments. This figure includes B2B transactions with suppliers, international remittances, payroll processing, and automated settlements in capital markets. Meanwhile, the remaining 99% of the volume corresponds to operations that do not involve end users: cryptocurrency trading, internal transfers between platforms, and protocol operational functions.

To contextualize the magnitude of this difference, the report highlights that the US$ 380 billion represents only 0.02% of the global payments market, estimated at over US$ 2 quadrillion annually by McKinsey. This tiny proportion sharply contrasts with common claims that stablecoins are already competing with giants like Visa and Mastercard.

Where Stablecoins Are Truly Being Used

The report identified three main pillars of genuine stablecoin use during 2024:

Business-to-Business (B2B) Transactions: Leading the segment, operations between companies moved US$ 226 billion, highlighting gradual penetration into international commercial processes.

Global Remittances and Payroll: These operations totaled US$ 90 billion, reflecting the potential of stablecoins to reduce transfer costs and accelerate payment cycles.

Activity in Capital Markets: With US$ 8 billion, automated settlements and blockchain-based settlement processes are beginning to gain traction, though they still represent a marginal fraction.

Increasing Competition in the Stablecoin Payment Market

Recently, the competition to dominate stablecoin-based payments has taken new shape. traditional payment companies like Visa and Stripe have accelerated their structures and integrations with stablecoins, recognizing the potential of this technology. Simultaneously, cryptocurrency-native companies like Circle and Tether are intensifying their promotion of tokens as viable alternatives to slow and costly international transfers.

This dual competition—between incumbent financial players and crypto players—signals a gradual, albeit still nascent, transition toward new payment infrastructures.

Long-Term Potential Beyond the Present

Despite the discouraging finding about the current state, McKinsey and Artemis analysts do not dismiss the future potential of stablecoins. The fact that genuine stablecoin payments are far below routine estimates does not invalidate their long-term relevance as a payment method. Instead, it sets a clear and realistic baseline to assess where the market stands and what barriers need to be overcome for stablecoins to reach significant scale.

For such expansion, clearer regulation across multiple jurisdictions, greater integration with traditional financial systems, reduced onboarding friction, and massive user education about the tangible benefits of this technology will be necessary.