Stablecoins are rapidly evolving from a niche vertical in the cryptocurrency ecosystem into a foundational element of the global financial system.

A new analysis by CB Insights, in partnership with industry player Stablecon, looks at this burgeoning ecosystem, highlighting key trends emerging in this industry, and mapping the sector’s top players.

One of the main trends outlined in the report is the increased participation of traditional financial institutions, drawn by stablecoins’ combination of fiat-like price stability with the speed, efficiency, and programmability of blockchain technology. Notably, Mastercard and Visa now support stablecoin transactions. Meanwhile, established banks such as France’s Societe Generale and Vantage Bank from the US have begun issuing their own stablecoins.

Increased involvement from the traditional financial industry is supported by the advent of blockchain infrastructure providers like Zero Hash and Fireblocks, which are offering technology geared towards traditional financial institutions looking to integrate stablecoin capabilities

The report also highlights the expansion of stablecoins beyond their original function as safer alternatives to high-risk cryptocurrencies. These tokens are now being used in yield-bearing tools and liquidity products. For example, Paxos, an established stablecoin issuer, launched in June 2024 a yield-bearing stablecoin called Lift Dollar (USDL). Stripe, which acquired stablecoin orchestration platform Bridge in February 2025, has added payment capabilities for the company’s USDB stablecoin, which generates yield through backing by BlackRock money market funds.

Finally, the report notes that stablecoins are increasingly being used for cross-border payments. In countries with robust traditional banking, stablecoins serve as specialized alternatives to fiat currency for specific use cases, while in emerging markets, stablecoins are providing more affordable and accessible USD alternatives. Mesta, for example, is an American startup offering an application programming interface (API) global fiat and stablecoin payment network supporting USD/EUR/GBP/USDC/USDT to 50+ global currencies across 100+ countries. Another example is Infinite, a stablecoin payment processor offering businesses APIs and a turnkey software development kit (SDK) for embedded global stablecoin payments.

Stablecoin market map

The report also maps the global stablecoin landscape, identifying 172 recently funded players that demonstrated strong momentum. These firms are categorized into eight segments based on their core business focus and were selected based on CB Insights’ Mosaic score, which assesses private-company health and growth potential based on funding data, personnel, market strength, and online sentiment.

The map reveals that stablecoin issuers, which create, distribute, and manage stablecoins, currently represent the largest category by number of companies. These companies also have the highest average M&A probability (24%) among segments, signaling high consolidation potential as the market matures and  strong interest from traditional financial acquirers. Leading companies in this vertical include Ripple, an established blockchain infrastructure provider that offers the RLUSD stablecoin, and Circle, the issuer of the USDC and EURC stablecoins.

The analysis also found that the liquidity and yield category is attracting significant funding. Over the last 12 months, the vertical has secured US$2.3 billion across 40 deals, the most funding of any category.

This category includes platforms, protocols, and services that enable users to deploy stablecoins to earn returns, provide market liquidity, or access lending/borrowing capabilities.

Prominent startups in this category include StakeStone, a cross-chain liquidity protocol, and Flowdesk, a market maker providing trading infrastructure from France.

The wallets and custodians category, which includes applications, platforms, and services that enable users to store, manage, and transact with stablecoins, have experienced the highest average headcount growth (83%) of any market map segment over the past year. For example, Kast, a Hong Kong startup offering services for spending stablecoins and cryptocurrencies, has increased its headcount by tenfold, the report says.

Finally, the payments processing segment, though still relatively early in its commercial development, is demonstrating significant growth potential. CB Insights estimates that companies in this category are expected to receive US$454 million in funding in 2025, up more than tenfold from the US$45 million they received in 2024.

Currently, half of the companies in the payments processing vertical are still either developing or piloting their products.

Notable companies in this segment include Rain, a card issuance and payments platform for stablecoin transactions, and Mesh, a crypto payments network from the US.

The stablecoin market is currently worth about US$255 billion, according to CoinMarketCap. By 2028, that value could grow nearly tenfold to US$2 trillion after the passage of US legislation that seeks to provide a regulatory framework for these cryptocurrencies, Standard Chartered estimates.

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was cleared by the Senate Banking Committee in March, is expected to be passed in the US in the coming weeks.

Featured image: Edited by Fintech News Switzerland, based on image by EyeEm via Freepik