The stablecoin market is no longer trailing behind traditional payment networks — it’s redefining them. With stablecoin transaction volumes now exceeding Visa’s, these digital assets are quickly becoming the payment rails themselves. Infrastructure leaders like Circle, PayPal, and even Visa are developing their own stablecoin technology stacks, signaling that programmable payments are moving from concept to mainstream adoption.

This surge is forcing the global financial system to adapt at speed. This week, we examine why stablecoin payments are outpacing legacy networks, how new initiatives from Circle and Visa could determine future market leadership, and why regulators, banks, and even economies in conflict zones are building on stablecoin infrastructure — or racing to keep up.

Visa vs. Circle vs. PayPal: The Next Payments War Has Begun

Global payments are undergoing a transformation — and stablecoins are at the center. In Q1 2025, stablecoin transaction volumes surpassed Visa for the first time, with over 30% quarter-over-quarter growth. The moment is symbolic, but meaningful: programmable money is outpacing card rails in raw throughput.

🔹 Bitwise now pegs stablecoin AUM at $237B — a 13.5% QoQ jump 🔹 USDT still leads with a 61.77% market share; USDC follows at 26.19% 🔹 PayPal’s PYUSD grew 3.46% this week; USDC added $1.38B in market cap

Cobo’s Take: Stablecoins are no longer the “alternative.” They’re infrastructure. For exchanges, PSPs, and fintechs, this means your stack must handle real-time, multi-chain, programmable payments — or get left behind.

Can Circle Disrupt Visa’s Dominance?

Circle is pivoting from stablecoin issuer to payment network operator with the launch of its Circle Payment Network (CPN) — connecting banks and institutions via USDC and EURC for real-time, cross-border transactions.

With a single API, CPN eliminates reconciliation delays and settlement lags — targeting the exact inefficiencies Visa built its empire on. Even its business model is shifting: moving from reserve interest to transaction-based revenue, just like Visa.

Meanwhile, Visa counters with VTAP (Visa Token Asset Platform) — letting banks mint their own digital currencies with cross-chain interoperability.

Cobo’s Take: Circle is betting on disintermediation. Visa is betting on orchestration. Regardless of who “wins,” wallets, rails, and integrations need to support both. WaaS providers that can flex between native and tokenized payment layers will be the ones powering tomorrow’s money movement.

Stablecoin Issuers Are Racing for Bank Licenses

Coinbase, Circle, Paxos, BitGo — all now exploring U.S. banking licenses. Why? Control, compliance, and legitimacy. With Congress debating between the stricter STABLE Act and the more flexible GENIUS Act, the licensing battleground will define who gets to scale in the U.S. market.

It’s an asymmetric fight:

• Banks must build new crypto rails from scratch.

• Crypto-native firms already have the tech — and the audience.

Cobo’s Take: Compliance is becoming a moat. WaaS infrastructure that’s audit-ready, KYT/AML-equipped, and adaptable to both state and federal frameworks will be the critical layer for future bank-grade stablecoin issuers.

Major Launches and Infrastructure Expansions

🔸 Ripple’s RLUSD hits Aave V3 Ethereum — with reclaimable token mechanics aimed at institutions.

🔸 Coinbase x PayPal deepen partnership:

• Free USD ↔ PYUSD conversions

• 3.7% APY yield on PYUSD for U.S. users

• Merchant integration for PayPal’s stablecoin rails

🔸 Lightspark x Brale bring stablecoins to the Bitcoin network, combining issuance and global settlement via Lightning-powered tools.

Cobo’s Take: Institutions are demanding programmable value + yield + compliance. WaaS must support smart contract hooks, flexible governance (like reclaim functions), and native integrations across chains — including Bitcoin.

Capital Moves: Betting Big on the Stablecoin Future

💰 Resolv Labs raises $10M for a yield-bearing stablecoin, USR, using delta-neutral structured finance strategies. $450M in TVL already.

🇺🇸 DWF Labs invests $25M in Trump-backed WLFI, backing the USD1 stablecoin (Treasury-backed). A move that combines stablecoin growth with political signaling.

Cobo’s Take: Stablecoins are becoming verticalized — institutional, yield-bearing, and even politically aligned. Your wallet architecture must flex to support differentiated issuance logic, custody configurations, and transaction policies.

Big Picture: Stablecoins Are Lifelines in Crisis Zones

Across Ukraine, Syria, and other conflict regions, stablecoins like USDT are replacing broken financial systems:

• Refugees access funds without IDs

• Merchants bypass FX volatility

• Governments raise war aid via crypto

• Bitcoin provides inflation stability (vs. Syria’s 100%+ inflation)

Meanwhile, Russia, reacting to a recent USDT wallet freeze, plans a non-USD-pegged national stablecoin to settle oil trades with China and India.

And in Europe, the ECB is going all-in on its digital euro — committing €1B to a launch before October 2025.

Cobo’s Take: The stablecoin landscape isn’t just financial — it’s geopolitical. Infrastructure that enables programmable, censorship-resistant, and cross-border value will define how capital moves in both peace and crisis.

Regulation & Compliance Watch

📝 Circle, BitGo, Coinbase, Paxos: All exploring licenses as U.S. Congress debates stablecoin frameworks

🏛 Dutch bank ING joins the stablecoin race, developing a Euro-pegged token under MiCA regs. This will pressure EU banks to match Société Générale’s early lead.

Cobo’s Take: Europe’s MiCA is accelerating stablecoin competition across banks. U.S. regs remain a question mark, but what’s clear is this: compliance-ready wallet infrastructure will be the backbone of both sides of the Atlantic.

Final Word from Cobo

Stablecoins are now the bridge between traditional finance and the programmable economy. They’re redefining settlement, regulation, and global financial access — all at once.

Cobo provides the wallet stack, developer tools, compliance rails, and multi-chain scalability to help exchanges, PSPs, and innovators thrive in this ecosystem. Whether you’re building a payment layer, tokenized deposits, or stablecoin yield products — we’ve got your infrastructure covered.

👉Get started with Cobo