USD Stablecoins Make Up 1.1% of U.S. M2 Money Supply – Expanding into Global Markets

# Stablecoin Adoption Soars with Market Surpassing $239.3 Billion, Capturing 1.1% of U.S. M2 Money Supply Plasma, a leading pioneer in stablecoin payment infrastructure, reports that USD-pegged stablecoins now make up 1.1% of the U.S. M2 money supply, with the total issuance exceeding $239.3 billion. This significant portion of the M2 money supply has been effectively tokenized, seamlessly circulating in the cryptocurrency ecosystem. Token Terminal's data shows that stablecoins constituted just 3% of on-chain transaction volume in 2020 but surged past 50% by 2024. The annual stablecoin transaction volume has now reached $32.8 trillion. This extensive usage is evident with over 1 billion transactions conducted by around 200 million unique addresses, surpassing the transaction volumes handled by Visa during the same timeframe. TetherUS (USDT) leads the stablecoin market, holding over two-thirds of the total market share with a supply above $142 billion. Interaction with USDT spans over 400 million users, a number comparable to PayPal's user base. Once viewed merely as speculative assets, stablecoins have now become widely adopted digital dollars with substantial real-world utility. # Ethereum and TRON Dominate Stablecoin Activity Despite Infrastructure Challenges Stablecoin transactions are primarily conducted on Ethereum (ETH) and TRON (TRX). By early 2025, Ethereum hosts nearly $130 billion in stablecoin issuance, while TRON supports $66 billion. Although Ethereum is a pioneer, it faces issues like network congestion and high transaction costs, making it less suitable for micro-transactions. TRON commands a significant share of USDT transactions, processing over $5.4 trillion in USDT transactions in 2024 alone, which accounts for more than 69% of global USDT activity. TRON's success is driven by its low transaction fees and fast speeds, attracting exchanges and arbitrage traders. However, concerns over centralization and high average transaction fees—around $3 per transfer—persist. Current infrastructure struggles with high costs, network congestion, and centralization. Blockchains today are not fully optimized for stablecoin use, hindering growth and wider adoption. # Trailblazing New Realms in Global Finance The future of stablecoins extends far beyond the crypto market, reaching into global finance. Their increasing role spans eurodollar replacements, international trade finance, and payments in emerging markets. ### Eurodollar Replacement Stablecoins, functioning similarly to the U.S. dollar, offer a more efficient alternative for the 80% of dollar-denominated trade occurring outside traditional banking systems. ### International Trade Tether's recent use in a $45 million crude oil transaction in the Middle East highlights stablecoins' potential. By eliminating intermediaries and reducing costs, stablecoins are enhancing transaction efficiency in global trade. ### Payments in Emerging Markets Stablecoins are lifelines in countries like Turkey, Argentina, Nigeria, and Brazil. In 2024, stablecoin users in 17 nations paid $4.7 billion in premium fees, a figure projected to rise to $25 billion annually by 2027. ### Trade Credit Major financial institutions are exploring stablecoin solutions. MUFG is piloting trade settlement solutions in emerging markets, leveraging public blockchains for swift and secure transactions. # Revolutionizing Traditional Finance and Unlocking Trillions in Opportunities Stablecoins are set to supplement or even replace conventional financial instruments. By improving payment efficiency and accessibility, the stablecoin market could achieve trillions in market capitalization and hundreds of trillions in annual transaction volume by 2030, unlocking tens of trillions of dollars in opportunities long-term.