Tether, Tron Dominate Fast-Growing Stablecoin Payments Arena, Survey Shows
A new report, “Stablecoin Payments from the Ground Up,” reveals the dominance of Tether’s USDT and the Tron network in the burgeoning stablecoin payment industry. The research, conducted by Artemis with assistance from Dragonfly and Castle Island Ventures, analyzed data from 31 stablecoin payment companies. The findings highlight USDT’s commanding 90% share of transaction volume among stablecoins, significantly outpacing Circle’s USDC, the second-largest stablecoin.
Tron emerged as the preferred settlement network, processing approximately 60% of the total volume. Ethereum, Binance Smart Chain, and Polygon followed, indicating a diverse but ultimately Tron-centric landscape for stablecoin payments. The aggregated annualized payment volume in February reached $72.3 billion, encompassing various sectors (B2B, P2P, B2C, card payments, and lending).
While stablecoins initially served as convenient holding instruments for cryptocurrency traders, their low cost and instant settlement capabilities are driving widespread adoption across diverse payment sectors. This expansion is fueled by both crypto-native companies and established financial institutions, reflecting a significant market opportunity.
The report’s findings challenge expectations, particularly regarding USDC’s relatively smaller market share in payments compared to its issuance volume. Despite Circle’s active involvement in payments and recent initiatives like a cross-border payments network, and its increasing market share in issuance over Tether, USDT’s dominance in payments remains striking. Dragonfly’s Rob Hadick attributes this disparity to the prevalence of business-to-business transactions between emerging markets and the U.S.
In regions like Argentina and Brazil, where concerns about bank failures are prevalent, Tether enjoys significant brand trust, solidifying its position as a preferred USD access method. Furthermore, the choice of blockchain for settlement appears less critical for businesses utilizing stablecoins for payments. Tron’s speed, low fees, and substantial USDT holdings ($60 billion+) contribute significantly to its popularity. Hadick emphasizes Tether’s brand recognition in these markets, drawing a comparison to Uber’s ubiquitous presence in ride-hailing services. The report underscores Tether’s powerful position and Tron’s strategic importance within the rapidly growing global stablecoin payments ecosystem.
