- Stablecoins have demonstrated strong momentum, with transaction volumes surging to $5.7 trillion in 2024 and accelerating further with a 66% spike in Q1 2025.
- Investor interest is growing - evidenced by a recent increase in M&A activity, predominantly driven by strategic buyers rather than financial sponsors.
- A standout example is Stripe’s landmark $1.1 billion acquisition of Bridge, signaling a major strategic shift toward stablecoin-enabled payments.
1. Size & Growth: Stablecoin Transaction Volume1
(in trillion of USD)
2. M&A Activity: Number of Stablecoins’ Payments Deals
(including select key events)
Inside the Fast-Changing World of Stablecoins: Mapping the Ecosystem
3. Stablecoin Market Ecosystem
(non-exhaustive)
- The stablecoin ecosystem is expanding, with a growing number of specialists offering solutions across a range of payment use cases, particularly in B2B and cross-border transactions.
- While adoption of stablecoin-based payments remains in its early stages, the landscape presents both compelling opportunities and material challenges. We maintain a cautious optimism, recognizing that sustained growth will depend on broader market adoption, enabling regulatory frameworks, commercially attractive incentives, and ongoing technological innovation.
Latest Regulatory Changes Presenting Opportunities for Payment Providers
4. Introduction to GENIUS Act in the US
(select key information)
5. Key Impacts on Payment Providers
(select observations)
- Recent legislation addresses the growing demand for regulatory clarity and standardized frameworks governing the use of stablecoins. These developments are paving the way for broader participation from the ecosystem of payment service providers, financial institutions, and fintech innovators.
- In particular, the recently enacted GENIUS Act in the United States and the Stablecoins Ordinance in Hong Kong focus exclusively on stablecoins, establishing clear legal and operational frameworks. These regulatory milestones define the “rules of the game” by introducing licensing, reserve backing, and operational transparency requirements.
- This provides much-needed clarity for payment providers and other ecosystem participants, enabling more secure, compliant, and scalable applications of stablecoins, particularly in cross-border payments where efficiency and trust are paramount.
Circle Debuts on the NYSE on June 5th, Fueled by High Demand from Investors
6. Stablecoin Market Cap
(as of June 23rd)
Circle (NYSE: CRCL) is a global financial technology company providing transactional services, business accounts, and platform APIs. As of June 5, 2025, Circle, the issuer of USD Coin (USDC), a stablecoin pegged to USD and the second-largest stablecoin by market cap, finalized its IPO (NYSE: CRCL).
7. Circle Share Cap and IPO Highlights
(as of June 23rd)
- Circle raised $1.1 billion pre-IPO sales at $6.9 B valuation, the stock was massively oversubscribed.
- 34 million Class A common stock shares at $31.00 per share (above the expected $27 to $28 range).
- As of June 23rd, Circle share price reached $263.45 and $63.9 B valuation.
8. Circle Business Performance
(in $ millions, 2022 - 2024)
- Circle’s business model is concentrated, relying on USDC adoption and high U.S. Treasury yields. It recently launched the Circle Payments Network (CPN), a platform aimed to connect financial institutions to enable payments using its stablecoin suite.
- Circle’s Gross Profit and Adj. EBITDA declined in 2024 due to higher distribution costs, primarily from the Coinbase revenue share agreement signed in Aug. 2023, (~90% of its COGS).
- Despite declining profitability and a market-driven revenue model, Circle’s IPO was well-received, underscoring strong investor appetite for exposure to stablecoin-based payments.
Please do not hesitate to contact Yuriy Kostenko at Yuriy@FlagshipAP.com or Alessandro Mighetto at Alessandro@FlagshipAP.com with comments and questions.