$35 trillion worth of stablecoins was moved in one year; who’s actually spending digital dollars?

Stablecoins experienced an impressive annual transaction volume of up to $35 trillion, but only about $390 billion of that amount was used for actual payments, according to a February 2026 analysis by McKinsey and Artemis Analytics. This raises an important question: if stablecoins are moving trillions, who is really using them to make purchases?

Stablecoins are cryptocurrencies meant to keep a steady value by being tied to an asset, usually a traditional currency like the US dollar. Unlike Bitcoin, which can see wild price swings, dollar-backed stablecoins like Tether’s USDT or Circle’s USDC aim to stay close to $1.

These coins let you hold and transfer digital dollars without relying fully on traditional banking systems. This feature has made them valuable for cryptocurrency traders, individuals looking to protect their savings from local currency depreciation, businesses settling international payments, and people sending money across borders.

However, the headline transaction figures can sometimes be misleading.

From crypto trading to moving money

Stablecoins have been around since 2014, but their popularity surged as cryptocurrency markets expanded. Their total supply jumped from under $30 billion in 2020 to over $300 billion by 2025. According to the Federal Reserve, this market reached $317 billion by April 6, 2026, marking a 50% growth since early 2025.

USDT and USDC are the two leading stablecoins, both pegged to the dollar. However, they have different reserve policies and regulatory frameworks. Initially, stablecoins were primarily utilised in cryptocurrency trading, allowing users to switch between digital assets without converting to traditional currencies. Exchanges also relied on them for liquidity and transaction settlements.

Despite their ongoing use in trading, the actual payments made with stablecoins totaled about $390 billion annually, based on December 2025 figures. This accounted for approximately 0.02% of global payment volumes, with around $226 billion from business-to-business transactions, and about $90 billion from payroll and remittances.

While stablecoins are seeing real-world usage, their impact on the overall global payment system is still limited. A July 2026 report from Allium and FXC Intelligence estimated that stablecoins were involved in $135 billion of the $44.3 trillion retail cross-border payments market in 2025. This was about 0.31% of the total market, an increase from $82 billion in 2024.

The report also highlighted a significant year-on-year growth of 64% in stablecoin cross-border payments, compared to just 9% for traditional fiat channels.

Who is using digital dollars?

In countries where it’s hard or costly to access foreign currency, stablecoins provide an alternative way to hold dollars and send money internationally. Nigeria is a prime example of this trend.

According to a June 2026 report from the International Monetary Fund (IMF), Nigeria accounted for about 60% of stablecoin inflows into sub-Saharan Africa from late 2019 to early 2025. The report noted that the country saw around $59 billion in crypto-asset inflows between July 2023 and June 2024, with stablecoins making up more than 65% of Nigeria’s cross-border crypto inflows in 2024.

By 2025, it was estimated that Nigeria had approximately 25.9 million digital-asset users, which is about 12% of its population. This number includes all types of digital assets, not just stablecoins.

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For many Nigerians, using stablecoins is a practical solution. Freelancers working for overseas clients often receive payments in USDT or USDC. Businesses importing goods may use stablecoins to pay suppliers internationally, and people receiving money from family abroad can access funds through digital wallets.

The IMF pointed out that the depreciation of the naira, high inflation, and limited access to foreign exchange in 2023 and 2024 fueled the demand for dollar-linked assets. Stablecoins gave households and businesses a means to preserve value in dollars and make overseas transactions.

However, just because someone receives stablecoins doesn’t mean they’re using them for everyday purchases. Many users tend to hold them as savings, trade them on exchanges, or convert them to naira through peer-to-peer platforms. This difference is important when considering how widely stablecoins are being adopted.

The promise and the risks involved with stablecoins

Digital assets are appealing because they allow cross-border transactions without the constraints of traditional banking hours and processes. Transfers can happen in minutes, depending on the blockchain used and the service provider.

For businesses, stablecoins can simplify access to foreign currencies and ease international payments. Individuals also benefit by having an alternative way to receive money from abroad.

However, there are challenges. Users need dependable wallets, access to exchanges or payment services, and a way to convert digital dollars into local currency when needed. Factors like network fees, exchange-rate spreads, fraud, and wallet security can also impact transaction costs and safety.

Economic concerns are also significant. The IMF has cautioned that widespread use of dollar-backed stablecoins could exacerbate digital dollarisation, particularly in countries like Nigeria. This could weaken demand for local currencies and complicate monetary policy.

The Bank for International Settlements noted in its 2026 Annual Economic Report that stablecoins are primarily used for cryptocurrency trading and, to a lesser extent, as stores of value in countries with unstable currencies. Their effectiveness as cross-border payment methods varies, especially once fees and conversion costs are accounted for.

Stablecoins have clearly evolved beyond just a niche crypto option. Their supply has grown, payment volumes are rising, and more individuals and businesses are discovering the benefits of using digital dollars.

Yet, while there might be $35 trillion reported in transactions, that doesn’t necessarily mean $35 trillion in actual payments. The true measure is how much money reaches workers, suppliers, families, and businesses. This is the real test of stablecoin adoption.

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