Did you know that in the first half of 2024, stablecoins processed more transaction volume than Visa? This isn’t just about crypto anymore; it’s a transformation in global payments.
Recently, a payment giant Stripe acquired Bridge.xyz, a crypto startup focused on stablecoin solutions, in a deal worth $1 billion. This move marks a major shift: stablecoins are no longer just for crypto traders—they’re becoming a foundational part of modern finance. Originally used mainly on exchanges, stablecoins have rapidly expanded and amounted to over $160 billion worth with over $500 billion transaction volume.
Nowadays stablecoins are being adopted for cross-border payments, payroll, trade settlement, and remittances. Their unique advantages set them apart from traditional payment systems, providing flexibility and accessibility that legacy systems simply can’t match, making a growing number of companies and brands have started accepting stablecoin payments.
Why are stablecoins (including fiat referenced tokens – FRTs) gaining ground?
1. Accessible to All Stablecoins and FRTs are permissionless, meaning anyone with internet access can use them. They don’t require a bank account or special permissions, making them a stable currency option for people in regions where traditional banking is limited. This accessibility could be transformative for billions of people who lack reliable access to dollar-based banking and need a safe alternative to volatile local currencies.
2. Programmable and Adaptable Stablecoins and FRTs are fully programmable, which opens up huge potential for automation. Developers can build applications to automate complex transactions—whether it’s instant payroll or cross-border payments—without the usual delays or fees. Major stablecoin issuers and FRT generators (including VNX), provide APIs that enable applications and businesses to issue and burn stablecoins, support integration for bank payments and settlements, and help optimize processes.This programmability makes stablecoins a powerful tool in a world that increasingly relies on automated and machine-to-machine transactions.
3. Transparent One of the major advantages of stablecoins is their transparency. Unlike traditional apps that rarely disclose how customer funds are held, stablecoin issuers like Circle and FRT generators like VNX publish regular, detailed reports on reserves. This transparency fosters trust and gives users confidence that their funds are backed by real assets.
4. Freedom to Move Stablecoins and FRTs act as digital bearer instruments, meaning holders have direct control over their assets without intermediaries. This flexibility allows instant fund transfers across borders or platforms, providing unprecedented financial mobility and reducing dependence on traditional financial institutions.
5. Open-Source for Innovation Many stablecoins and FRTs are open-source, allowing developers worldwide to inspect or build on the code. This invites global collaboration and rapid innovation, unlike the proprietary, closed nature of traditional finance. As a result, stablecoins and FRTs are constantly evolving, driven by the contributions of a global developer community.
What’s Next?
Stripe’s acquisition of Bridge.xyz signals a serious intent to integrate stablecoins into mainstream finance. As stablecoins gain acceptance in areas like cross-border payments, payroll, and daily transactions, they’re positioned to redefine what we think of as “money” in the digital age. In a fast-evolving regulatory environment, especially with Europe at the forefront of digital asset regulation, there’s rising potential for stablecoins pegged to non-USD currencies, which could see significant growth in the coming years.
Amid this shift, companies like VNX are taking the lead in FRT and stablecoin development. VNX has launched stable assets like VNX Euro, VNX Gold, and VNX Swiss Franc to address future growing demand for non-USD stablecoins. With European Markets in Crypto-Assets Regulation (MiCA) aims to support digital assets, VNX anticipates substantial growth in Euro-pegged stablecoins (including FRTs), projecting their market capitalization to reach $8 billion within the next three to five years—a potential 25x growth.
This shift reflects a broader trend as non-USD stablecoins gain traction, with businesses and consumers looking for options that better align with local economies. VNX’s commitment to creating stable, transparent assets is laying the groundwork for Europe’s expanding demand for non-USD stablecoins, helping drive a more decentralized financial future.
Stablecoins (including FRTs) are no longer just a crypto product—they’re emerging as a new form of digital money that’s faster, more transparent, and accessible worldwide. Stripe’s move shows that even traditional finance is recognizing the transformative potential of stablecoins. As adoption accelerates, and with innovators like VNX advancing FRTs in European markets, we might just be witnessing the beginning of a more open, digital-native financial system.
