By Nina Shah
Stablecoins are shedding their image as mere crypto experiments and are being integrated into how people manage day-to-day money, according to Chris Harmse, co-founder of the financial technology platform BVNK. Harmse told the reporter that the trend reflects concrete utility rather than speculative trading, and pointed to usage patterns and market metrics to support that view.
Harmse summarized the shift bluntly: "[T]he data show that this is not speculative behavior," and described the development as "utility compounding." He argued that the underlying reason is straightforward: stablecoins address several operational frictions that matter for payments and value transmission.
"The reason is simple. [Stablecoins] solve practical problems. Lower fees. Faster settlement. Global access. When something consistently works better in certain use cases, people naturally allocate more resources to it," Harmse said.
Stablecoins are theoretically pegged to fiat currencies, most commonly the U.S. dollar, and include widely used tokens such as Tether's USDT and Circle Internet's USDC. Unlike many major cryptocurrencies that exhibit sharp price swings, stablecoins are designed to offer steadier nominal values, making them more suitable for payments and transfers rather than short-term speculation, proponents say.
But, Harmse emphasized, these tokens are not simply static stores of value sitting idle in wallets. According to the usage patterns he cited, roughly 28% of stablecoin holders either convert or spend their tokens within days of receiving them, and about two-thirds move their stablecoins within months. Those timeframes point to transactional use cases rather than long-term hoarding.
BVNK's recent report provides further context on the market's expansion. The report finds the stablecoin market has grown to more than $300 billion in aggregate, while total supply of stablecoins has increased by 500% over the past five years. In addition, BVNK reports that half of stablecoin holders increased their holdings over the past 12 months, a sign of growing allocation to these instruments.
Industry results this week underlined demand. Circle Internet reported a surge in profit and revenue in the fourth quarter, even as the prices of other digital assets slid in late 2025. Circle's USDC finished the year with circulation at $75.3 billion, a 72% increase compared with 2024.
Harmse highlighted that the combination of lower remittance costs, avoidance of local currency volatility and faster cross-border settlement has made stablecoins especially attractive in lower- and middle-income economies. In those markets, the benefits of avoiding slow or costly cross-border payments and seeking relative currency stability are acute, he said.
By contrast, Harmse noted, adoption in higher-income markets has been more limited. "In developed markets, the starting point is different: payments work. Cards go through, bank transfers arrive, and salaries land on time. So the hesitation is understandable. The question is simply, why change?" he observed.
Harmse suggested broader uptake in developed markets will likely depend on stablecoins being integrated into familiar payment experiences - for example, cards, mobile wallets and standard checkout flows - so that consumers can treat them like "everyday money." He said customers want "to stablecoins to behave like everyday money."
At the same time, a number of risks and points of scrutiny accompany the sector's growth. Critics have raised concerns about the composition of reserves backing some stablecoins, particularly the amount of U.S. government debt held by issuers such as Tether to meet redemptions. Observers worry that a large-scale run on stablecoins could force issuers to sell Treasuries into the market, potentially triggering distress in broader market plumbing that supports the cryptocurrency ecosystem.
Banks have also expressed unease over yield-producing stablecoin rewards. Some lenders contend that returns offered through certain stablecoin programs could threaten traditional deposit products by drawing away customers from savings accounts.
Regulatory efforts are advancing in parallel with market growth. The article notes the existence of a legislative effort known as the Genius Act, which has support from the Trump administration, aimed at creating a regulatory framework for stablecoins. Such frameworks are intended to foster mainstream adoption while setting constraints and oversight, although the article does not elaborate on specific provisions.
Ultimately, the evolving picture is one of rising practical use among certain populations and persistent caution among incumbents and regulators. Harmse's perspective and BVNK's market data point to expanding adoption driven by clear operational advantages in payments and cross-border transfers, even as the sector navigates questions about reserve assets, potential market impact from redemptions, and the relationship with traditional banking products.
Summary
BVNK co-founder Chris Harmse says stablecoins are moving from experiment into routine money management, supported by usage data and market expansion. The tokens offer lower fees, faster settlement and global access, driving adoption particularly in lower- and middle-income economies. Market growth and rising issuance coexist with concerns about reserve backing, potential market stress from redemptions, and competition with bank deposit products. Regulatory steps are underway to formalize the sector.
Key points
- Stablecoins are increasingly used for payments and transfers rather than speculation, supported by transaction timing data and BVNK market figures - sectors impacted include payments, remittances and fintech.
- Market metrics show sizable expansion: total market value over $300 billion and supply up 500% in five years; USDC circulation rose to $75.3 billion, a 72% increase year-over-year - relevant to digital asset markets and treasury management.
- Adoption patterns differ by income level: stronger uptake in lower- and middle-income economies due to currency volatility and remittance costs; slower adoption in developed markets where existing payment rails function well - implications for international payments and consumer finance.
Risks and uncertainties
- Reserve composition concerns: Critics point to the reliance on U.S. government debt by some issuers, raising the risk that a run could force asset sales and stress market plumbing - this affects fixed income and crypto market liquidity.
- Banking sector friction: Banks have criticized yield-bearing stablecoin programs as potentially endangering traditional savings deposits, creating competitive and regulatory tensions in the retail banking sector.
- Uneven adoption: Limited uptake in developed markets where payments already work reduces the immediacy of mainstream replacement, leaving regulatory and integration outcomes uncertain for payment networks.
Disclosure
This article is informational and does not constitute investment advice.