Stablecoins Process $27T in 2024 Surpassing Visa/Mastercard Combined as TradFi Adoption Grows

JPMorgan’s analysis highlights the transformative role of stablecoins in traditional finance (TradFi), citing a record $27 trillion in transaction volume processed by stablecoins in 2024 alone. This figure, surpassing the combined transaction volumes of Visa and Mastercard, underscores the growing institutional confidence in blockchain-based assets pegged to fiat currencies like the U.S. dollar [1]. The bank attributes this surge to maturing infrastructure, including custodial solutions, compliance frameworks, and partnerships between stablecoin issuers and traditional financial institutions [1].

The integration of stablecoins into TradFi is exemplified by major players adopting the technology for settlement efficiency. Visa, Mastercard, and PayPal have incorporated stablecoins into their operations, while the U.S. Senate’s 2025 GENIUS Act provided legal clarity for the asset class [1]. JPMorgan itself has launched initiatives such as JPMD, a tokenized deposit on Coinbase’s Base chain for institutional clients, and the Tokenized Collateral Network (TCN), which tokenizes real-world assets (RWAs) for use as blockchain collateral [1]. These efforts align with broader industry trends, including Goldman Sachs and Bank of New York Mellon’s partnership to tokenize money-market fund shares—a move JPMorgan calls a “significant leap forward” for the $7 trillion sector [1].

Despite the momentum, JPMorgan maintains a cautious outlook. While some analysts predict stablecoins could grow into a trillion-dollar asset class, the bank projects a more modest $500 billion market by 2028, citing regulatory uncertainties and geopolitical complexities [1]. The firm emphasizes the need for “balanced innovation” to mitigate risks such as money laundering, market volatility, and systemic interdependencies. This aligns with global regulatory efforts, including the EU’s MiCA (Markets in Crypto-Assets) framework, which aims to standardize stablecoin oversight [1].

The implications for the financial industry are profound. Stablecoins could disrupt traditional payment networks by enabling near-instant, low-cost transactions, potentially reshaping revenue models for banks and fintechs [1]. Use cases such as real-time trade finance settlements and programmable smart contracts for escrow services are gaining traction. However, JPMorgan notes that widespread adoption hinges on resolving technical challenges—like network scalability and energy consumption—and fostering trust in stablecoin reserves [1].

Institutional adoption of stablecoin-related products, including exchange-traded notes and tokenized deposits, has accelerated in 2024, mirroring the broader legitimization of crypto assets post-Bitcoin ETF approvals [1]. Yet, the report cautions that stablecoins are most effective in niche applications rather than as a wholesale replacement for traditional currencies.

As stablecoins cement their role in TradFi, the coming months will likely see intensified collaboration among policymakers, financial institutions, and crypto stakeholders to define regulatory boundaries. The $27 trillion milestone marks a pivotal shift toward a hybrid financial ecosystem where technological innovation and regulatory guardrails coexist [1].

Source: [1] [JPMorgan: Stablecoins Processed $27T in 2024, Now Entering TradFi] [https://news.bitcoin.com/jpmorgan-stablecoins-processed-27t-in-2024-now-entering-tradfi/]