Stablecoin transactions exceeded $28 trillion in 2025, yet venture capital remains focused on the U.S. and Europe, overlooking emerging markets.
Growing Stablecoin Market Outpaces Traditional Financial Giants
By 2025, stablecoin transactions skyrocketed to over $28 trillion, surpassing the combined totals of Visa and Mastercard. However, the concentration of stablecoin founders and venture capital remains predominantly in the U.S. and Europe, where these assets are typically viewed as institutional products.
Emerging markets are demonstrating a burgeoning demand for stablecoins, with Nigeria alone boasting over 26 million crypto users who heavily rely on these assets. In Argentina, stablecoin transactions account for more than half of all exchange activities, driven by inflation and stringent currency regulations.
According to Alex Witt, General Partner at Verda Ventures, investors who focus on founders in cities like Lagos, São Paulo, and Manila are likely to reap substantial returns from stablecoins in the forthcoming decade.
Mismatch in Founders and Transaction Volumes
Despite the significant transaction volumes in emerging markets, a report from Stablescape reveals that only 32% of the 3,000 tracked stablecoin and crypto-fintech firms are based in regions such as Latin America, sub-Saharan Africa, and Southeast Asia. This is despite these regions generating a majority of real-world stablecoin transactions.
In Brazil, crypto inflows reached $318.8 billion by mid-2025, with stablecoins facilitating over 90% of these transactions. In sub-Saharan Africa, the market expanded by 52% year-on-year, accumulating over $205 billion in on-chain value, yet the infrastructure development is still led by founders based in the U.S. and Europe.
Stablecoins as Essential Tools in Emerging Economies
In contrast to Western markets, where stablecoins are often seen as tools for advanced financial applications, in emerging markets they serve to enhance existing systems. For many in regions like Lagos and Buenos Aires, stablecoins are critical for preserving value amid unstable banking systems and currencies.
From early 2023 to mid-2025, B2B stablecoin transactions in Latin America surged from under $100 million to over $6 billion monthly, primarily driven by cross-border trade. Companies like Yellow Card have shifted focus from consumer to B2B transactions to better align with market demands.
Venture Capital's Blind Spot
In 2024, 30 venture capital firms captured 75% of the capital raised by U.S. funds, yet they often overlook the potential of founders in emerging markets. Critics argue that fintech in these regions lacks viable exit strategies, but companies like OPay and Modern Treasury are proving this notion wrong with significant valuations and acquisitions.
Regulatory measures in the U.S. are primarily designed for corporate compliance, missing the dynamic growth happening in Nigeria and Argentina, which reportedly surpasses the U.S. market in transaction volume.
Future Opportunities in Emerging Markets
The Philippines saw $39.6 billion in personal remittances in 2025, where stablecoin transfers offer a more cost-effective solution compared to traditional methods. As regulatory frameworks evolve in Africa and Latin America, these regions are positioned to become the next hotspots for stablecoin innovation.
El Dorado, a Latin American stablecoin super-app, achieved rapid user growth and significant revenue, demonstrating the potential for success in these markets. This model of local validation followed by global investment is expected to replicate across major emerging market corridors in the next five years.
Investment Insights for Future Growth
The stablecoin sector is bifurcating into two segments: one focused on enterprise-grade infrastructure for the West and another providing dollar access in unstable environments. The latter, which is already capturing most of the demand, remains significantly underfunded.
Companies developing stablecoin solutions for local markets, like Kulipa and Mural Pay, represent a category that is often overlooked by Western investors. The next wave of stablecoin innovations will likely come from regions like Lagos, São Paulo, and Manila, where venture capital needs to establish relationships to capitalize on upcoming opportunities.
The potential for growth is clear, yet the attention of venture capital remains misdirected. Recognizing and investing in these emerging markets could yield significant returns in the stablecoin landscape over the next decade.
