Stablecoin Volume Soars in Emerging Markets, Yet Founders Stay in West
Stablecoin transaction volume hit $28 trillion in 2025, driven by emerging markets like Nigeria and Argentina. Yet, most stablecoin founders and VC funds remain in the U.S. and Europe, ignoring the real demand. Alex Witt argues the next big returns will come from backing founders in these underserved regions.
Quick Take
Global stablecoin volume surpassed $28T in 2025, beating Visa and Mastercard combined.
Emerging markets like Nigeria (26M+ users) and Argentina (50% exchange trades) dominate usage.
68% of stablecoin companies are based in the U.S., not where demand is highest.
B2B stablecoin payments in LatAm surged 60x in 30 months to $6B/month.
Market Impact Analysis
NeutralOpinion piece highlighting a structural trend with supporting data, but no direct short-term catalyst for crypto prices; bullish for long-term stablecoin adoption but not market-moving.
Speculation Analysis
Key Takeaways
- Global stablecoin volume surpassed $28 trillion in 2025, beating Visa and Mastercard combined.
- Emerging markets like Nigeria (26M+ crypto users) and Argentina (50% of exchange trades) dominate usage.
- 68% of stablecoin companies are US-based, ignoring where actual demand concentrates.
- B2B stablecoin payments in Latin America surged 60x in 30 months to $6 billion per month.
What Happened
Stablecoin transaction volume topped $28 trillion globally in 2025, surpassing Visa and Mastercard combined. But the founders and venture capital building the infrastructure remain heavily concentrated in the U.S. and Europe. An opinion piece by Alex Witt of Verda Ventures highlights the mismatch: the real demand is in emerging markets like Nigeria, Argentina, and Brazil, where stablecoins serve as a financial lifeline, not just an institutional product.
The Numbers
Global stablecoin volume exceeded $28 trillion, with emerging markets driving the surge. Nigeria counts over 26 million crypto users — 59% hold USDT. In Argentina, stablecoin purchases represent more than half of all exchange transactions. B2B stablecoin payments in Latin America exploded from under $100 million per month in early 2023 to over $6 billion per month by mid-2025. Yet 68% of tracked stablecoin companies are based in the U.S., per Stablescape data.
Why It Happened
VC funds and founders remain concentrated in financial hubs like New York and London, where stablecoins are framed as institutional settlement rails. The developed-market narrative overlooks the millions in emerging economies who use stablecoins for dollar savings, remittances, and cross-border trade. While BlackRock and JPMorgan contest the institutional layer, the underserved retail and B2B markets in Africa, Latin America, and Southeast Asia represent a largely untapped frontier.
Broader Impact
The geographical imbalance suggests the next wave of crypto innovation may shift to cities like Lagos, São Paulo, and Manila. Funds betting on local founders now could capture asymmetric returns. The trend also pressures regulators in both developed and emerging markets to reassess stablecoin oversight in a landscape where real-world usage has already outpaced policy frameworks.
What to Watch Next
- Whether VC funding begins flowing to stablecoin startups in emerging markets, or remains siloed in the West.
- Regulatory developments in key markets like Nigeria, Brazil, and Argentina that could accelerate or hinder adoption.
- Incumbent financial firms launching local stablecoin services to compete with grassroots solutions.
This article is for informational purposes only and does not constitute financial advice.
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