I have been delving deep into the stablecoin topic lately and was surprised by what I found out. So, I thought I would share this valuable information with you.
So far, I have understood that stablecoins are somehow revolutionizing payments and remittances, bringing crypto to the everyday world.
But then I discovered Visa’s latest data.
This data flips that narrative on its head. Visa revealed a shocking statistic: 80% of stablecoin transactions are actually just bots moving money between exchanges.
80% of stablecoin transactions are actually just bots moving money between exchanges.
To say it with Elon: "Let that sink!"
It seems that the idea that stablecoins are being used for everyday transactions is not far from reality. So, I dug deeper to discover what’s happening with stablecoins.
1. Stablecoins Fuel Crypto’s Biggest Players
Forget about retail payments or buying coffee. Stablecoins have become the secret weapon for major market makers, prop traders, and hedge funds.
These players use stablecoins to move massive amounts of liquidity between exchanges at speeds traditional banking can’t match. Think of stablecoins as the backbone of high-speed trading, not a replacement for cash.
2. Retail Use Almost Non-Existent
Visa’s research leaves little doubt: retail use of stablecoins is almost non-existent. This completely undercuts the narrative that stablecoins are primarily for payments and remittances.
Instead, stablecoins serve as a supercharged tool for liquidity, mainly in the hands of institutional players.
3. The Real Purpose of Stablecoins: Stability & Speed
In crypto, traders need assets that combine the stability of the US dollar with the speed of blockchain transactions. Stablecoins like Tether were born to serve this exact purpose—offering dollar value with crypto speed.
4. Skipping the Banks, Going All In on Crypto
Banks operate on a 9-to-5 schedule with slow processing times and fees that add up. The crypto market, on the other hand, never sleeps. Stablecoins gave exchanges the power to operate independently of banks, 24/7.
Take Binance. When it launched in 2017, it didn’t even have fiat bank accounts, yet it quickly became the world’s largest crypto exchange—all thanks to stablecoins.
The truth?
Many believe stablecoins are disrupting traditional payments. Instead, they support crypto’s high-stakes trading ecosystem, making it fast, efficient, and borderless.
Next time someone claims stablecoins are just for payments, know that the reality is much bigger—and far more intriguing.
Stablecoins are built for liquidity, not lattes.