What Are Stablecoins and Why Are Institutional Players Jumping Onboard Now?

DeFi Wealth Hub
Oct 28, 2025
4 min read

💵 What Are Stablecoins and Why Are Institutional Players Jumping Onboard Now?

By DeFi Wealth Hub

Ever wish you could send money across the world instantly—without banks, delays, or high fees?

That’s the power of stablecoins—digital money designed to stay stable while moving faster than any traditional system ever could.

Once considered a niche crypto tool, stablecoins are now moving trillions of dollars a year, attracting attention from major banks, businesses, and investors. Let’s break down what they are, why they matter, and how this quiet revolution could shape your financial future.

🪙 What Are Stablecoins?

Think of stablecoins as digital dollars (or euros, or other currencies) you can send instantly online.

One stablecoin is always meant to stay at $1 (or close)—unlike Bitcoin or Ethereum, which swing up and down in price.

How do they stay steady?

Most are backed by real cash or assets held by trusted companies. That means every digital coin is matched by a real dollar sitting safely in a regulated account.

Right now, stablecoins are moving a massive amount of money:$46 trillion in the past year—that’s more than Visa ($16 trillion) and nearly as much as the global bank system called ACH ($87 trillion). That makes stablecoins one of the biggest emerging forces in finance.

💬 Expert assessment - Stablecoins are digital cash that moves at internet speed—fast, global, and reliable.

🌍 Who’s Using Stablecoins and Why It Matters

So who’s actually using stablecoins? The answer might surprise you.

47 million people use them every month

161 million own some

Over 75% of stablecoin activity comes from crypto traders and DeFi users

15% comes from businesses and individuals sending money across borders

Around 10% comes from people protecting savings from inflation

Less than 1% is used for everyday shopping—but that number’s growing

💼 Why Use Stablecoins?

Different people use stablecoins for different reasons:

Businesses: Send money globally in seconds for a fraction of bank transfer costs.

People: Move money home to family or shield savings from inflation.

DeFi users: Lend, borrow, or earn interest with no bank required.

Shoppers: PayPal and Stripe now support stablecoin payments—real-world use is here.

In DeFi (Decentralized Finance), which platforms like DeFi Wealth Hub help you explore safely, anyone can earn, invest, or transact freely—no middlemen, no approvals.

💬 Expert assessment - In DeFi, your money doesn’t just sit—it works for you.

🌎 Where Stablecoins Are Booming

Stablecoins aren’t just a Western tech trend—they’re changing lives worldwide.

Nigeria: 9% of citizens use stablecoins

India: $300 billion moved in just seven months

Indonesia: 1 in 5 people own crypto

Argentina: Usage up 60% amid inflation

Turkey: Nearly half of savers prefer stablecoins over local dollars

For many people, stablecoins aren’t an investment—they’re a lifeline against unstable currencies and failing banks.

💳 Stablecoins vs. Traditional Payment Systems

Stablecoins haven’t fully overtaken Visa or Mastercard yet—but they’re catching up fast. Even those payment giants now integrate stablecoins into their networks.

New global laws are making them safer and more regulated than ever, turning what began as an experiment into a legitimate financial system.

💬 Expert assessment - Even traditional finance is building on stablecoins—because that’s where the future is headed.

⚖️ Understanding the Shift: How the Rules Changed

Just a few years ago, experts like Mark Moss, Michael Saylor, and Alex Becker were cautious about stablecoins. They worried about regulation, security, and adoption.

Everything changed in 2025.

The GENIUS Act

This landmark U.S. law gave clear, nationwide rules for stablecoins—defining how they’re issued, backed, and supervised.

In plain English:

Stablecoins for payments are not treated like risky securities
Issuers must hold real reserves, meet capital and audit standards, and stay transparent
Strong consumer protections and anti-money-laundering (AML) measures build trust
Government support now encourages responsible innovation

ISO 20022 – The Global Connection

At the same time, the world adopted a new international standard for payments: ISO 20022. It lets banks and blockchains “speak the same language,” making transfers faster and safer.

In simple terms: Stablecoins using ISO 20022 can plug directly into existing banking systems—bridging crypto and traditional finance.

💬 Expert assessment - ISO 20022 turns stablecoins into the glue connecting old finance with new.

🏦 Why Institutions Are Jumping In

With regulation and standards in place, institutional confidence skyrocketed.

Major players like BlackRock, PayPal, and leading banks now use stablecoins to move funds and power payment systems.

Mark Moss praises the new framework as a safe bridge between old finance and DeFi.
Michael Saylor calls stablecoins “digital dollar rails” for global payments.
Alex Becker highlights their use in creator economies, gaming, and global work.

These shifts prove one thing: stablecoins have matured—from speculative tools into trusted digital money.

🚀 The New Playing Field

Thanks to clear rules and advanced tech standards, stablecoins are no longer risky experiments. They’re becoming the foundation of modern digital finance.

Today, over $300 billion sits locked in stablecoins, and that number grows every year. The next wave of innovation—DeFi platforms, payment apps, and even banks—are all building on this foundation.

🧭 How You Can Get Onboard

Want to explore how stablecoins fit into your financial strategy? Start small, learn safely, and grow confidently.

At DeFiWealthHub, we make it simple:

💡 Step 1: Start at the Explorer Level

Learn the basics of DeFi and stablecoins through easy, guides land other tools.

🚀 Step 2: Upgrade to Pathfinder and then to the Maven level

Deepen your knowledge with tools for tracking, analysis, and yield strategies.

🧰 Step 3: Use the Right Tools