Stablecoins Surge to $35 Trillion: A Deep Dive into 2025’s Crypto Landscape
Stablecoin transaction volume reached a staggering $35 trillion in 2025, marking a nearly 20% increase from the $27.5 trillion recorded in 2024. This surge underscores the growing importance of stablecoins within the digital asset ecosystem, with monthly transaction volumes exceeding $1 trillion multiple times throughout the year.
The Rise of Stablecoins and Their Dominance
By 2025, stablecoins accounted for 30% of all on-chain crypto transaction volume, a significant increase demonstrating their appeal in both developing and established economies. Their ability to offer price consistency, pegged to fiat currencies or commodities, provides a stable alternative amidst market volatility.
Interestingly, despite the massive growth, illicit activity associated with stablecoins remains relatively low, accounting for roughly 0.4% of overall activity. This suggests that the vast majority of stablecoin usage is legitimate.
Illicit Flows and Sanctions Evasion
While the overall percentage of illicit activity remains small, the absolute value of illicit flows through stablecoins reached $141 billion in 2025 – the highest level observed in five years. A significant portion of this, approximately $72 billion, is linked to A7A5, a ruble-pegged stablecoin operating within networks subject to sanctions.
TRM Labs data reveals that stablecoins now comprise 86% of all illicit crypto flows, highlighting their increasing role within high-risk ecosystems. Sanctions-related networks, particularly the A7 ecosystem, have evolved into large, centralized cross-border financial systems.
However, A7A5’s director for Regulatory and Overseas Affairs, Oleg Ogienko, disputes claims of illicit activity, asserting the company’s full compliance with Kyrgyz regulations and adherence to Financial Action Task Force (FATF) principles. Despite these claims, A7A5 and its affiliated entities remain sanctioned by the U.S. Department of the Treasury.
Geographic Hotspots: India and the United States Lead the Way
The 2025 Crypto Adoption and Stablecoin Usage Report by TRM Labs identifies India and the United States as the leading countries in crypto adoption. The U.S. Saw a 50% surge in crypto transaction volume, exceeding $1 trillion, while India maintained its position as the top country for adoption for the third consecutive year.
South Asia experienced particularly rapid growth, with an 80% increase in crypto transaction volume during the first seven months of 2025. This growth is attributed to a combination of increasing retail interest and the rising use of stablecoins for payments, remittances, and as a store of value.
Shifting Trends in Illicit Activity
Interestingly, the report indicates a potential shift away from stablecoins for sanctions evasion. While illicit volume grew for non-stablecoin digital assets, sanctions-related activity in stablecoins fell by 60%. This suggests that illicit actors may be exploring alternative methods to circumvent sanctions.
The institutionalization and centralization of illicit networks, particularly through entities like A7 and associated exchanges, became more pronounced in 2025, representing a significant evolution from the more fragmented infrastructure observed in previous years.
Frequently Asked Questions
- What percentage of stablecoin transactions were linked to illicit activity in 2025? Less than 0.5%.
- What was the total transaction volume of stablecoins in 2025? At least $35 trillion.
- Which countries led in crypto adoption in 2025? India and the United States.
- What is the A7A5 token? A ruble-pegged stablecoin linked to sanctions-related networks.
Pro Tip: When evaluating the risks and opportunities associated with stablecoins, it’s crucial to consider both the overall growth of the market and the evolving tactics employed by illicit actors.
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