Why Stablecoins are Getting VC Attention
Stablecoins are proving to be one of crypto's most enduring success stories, with venture capital increasingly viewing them as a gateway to mainstream adoption. According to The Block’s "The Funding" newsletter, stablecoin use is no longer tied to crypto cycles and is instead thriving across payments, savings, and global remittances.
One major catalyst was Stripe’s $1.1 billion acquisition of Bridge last October, signaling serious interest from mainstream fintech. VanEck Ventures’ Juan Lopez suggested that if Stripe shifts even a fraction of its $1 trillion in payment volume to its own stablecoin, it could unlock $40 billion in annual net interest margin.
Real Economic Impact
Stablecoin supply has grown from $125 billion in early 2024 to nearly $230 billion today. Cross-border payments on stablecoin rails now exceed $50 billion per month, up from near zero just over a year ago. According to Visa’s data, adjusted stablecoin volume surpassed $5.5 trillion in 2024 and could hit $6 trillion in 2025.
Profitable and Scalable
Top stablecoin issuers like Tether are generating billions in profit from treasury yields with minimal overhead. “Stablecoins are inherently a very profitable business,” said Bain Capital Crypto’s Stefan Cohen.
VCs are also funding the infrastructure behind stablecoins — from compliant wallets to onchain payment rails. Some investors are focused on app-first models where stablecoins are simply embedded in user-facing tools.
Regulatory Clarity Is Key
While the upside is large, venture capitalists warn that stablecoin growth depends heavily on regulatory clarity. Many expect supply and volume to 5x if a U.S. stablecoin bill is passed. However, there are concerns that regulation could favor incumbents and restrict innovation. Startups fear being squeezed out if only large institutions are allowed to issue stablecoins.
Despite the hurdles, VCs believe stablecoins will become the default rails for moving money online — quietly reshaping how value flows across global finance.
