The rapid expansion of stablecoins is profoundly changing the global cross-border payment system, becoming a key component of digital financial infrastructure. Ripple executive Reece Merrick pointed out on social media that institutions are viewing stablecoins as core financial instruments, with their influence surpassing traditional payment networks. In 2025, global stablecoin transaction volume surged 72% year-on-year, with active users covering 106 countries, an increase of 146%, and the total market capitalization exceeding $320 billion.
Emerging markets have become the core engine of stablecoin growth. Turkish citizens widely use stablecoins as a store of value to avoid drastic fluctuations in their local currency. In Africa, huge remittance demands are driving the popularity of on-chain settlements, with Nigeria's annual remittance scale reaching $59 billion, and a large amount of funds are shifting from traditional banking systems to blockchain networks. The UAE is also accelerating institutionalization, launching the official stablecoin DDSC backed by the dirham, specifically designed for institutional-grade settlement, targeting a global market of $170 billion.
On the technical front, the Sonic network has launched the USSD, a US dollar stablecoin backed by US Treasury bonds. This token relies on assets managed by BlackRock, Superstate, and WisdomTree, and is built on Frax Finance's frxUSD protocol. Users can mint USSD for free by depositing mainstream stablecoins such as USDC or USDT. Smart contracts automatically complete issuance and redemption, and there are plans to open direct exchange channels for multiple public chains to improve liquidity efficiency.
However, the regulatory process in the United States still faces resistance. Traditional banks are concerned about deposit outflows and strongly oppose legislative proposals that would give stablecoins rewards. Crypto companies are calling for fair competition, arguing that banks should respond to challenges through innovation. Although the White House has held talks with companies such as Coinbase, legislative progress is slow. Crypto policy advisor Patrick Witt warns that if banks continue to obstruct, it could lead to a complete loss of control over stablecoin incentive mechanisms, further exacerbating regulatory uncertainty.