State of Stablecoins - September 2025

As of late September, dollar payment stablecoins hover around a combined $295.7B market cap—a scale that now rivals mid-sized sovereign bond markets and commands policymaker attention from the Department of the Treasury and financial institutions globally.

Raw transfer figures can be misleading, but on a bot‑adjusted basis, payment stablecoin activity still tallied $5.7T in 2024—massive, yet more reflective of real commerce than headline on‑chain volume for digital assets.

This growth sits at the intersection of macro yields, enterprise adoption, and tightening regulatory framework. Central‑bank researchers warn that payment stablecoins rarely at par can challenge their reliability as cash equivalent everyday money, even as their links to traditional financial institutions deepen. Meanwhile, economic data vendors can disagree on exact totals, underscoring how methodology choices shape the digital asset narrative.

At the same time, payment stablecoin issuers' economics remain robust: with Treasury‑backed reserve assets, profits have swelled alongside short‑term rates—Tether, for instance, reported $4.9B net profit in Q2 2025. For users and enterprises, the upside is faster settlement, programmable cash equivalent, and multi‑chain reach—if trust and compliance with the GENIUS Act keep pace.

In this September edition, we'll map the economic data, rules including GENIUS Act implementation, and real‑world rails shaping payment stablecoins now, and mastering them matters heading into Q4.

September 2025 Economic Data: Market Cap, Yields, and Payment Stablecoin Issuer Economics

Depending on the economic data provider, the payment stablecoin market is hovering just under the psychological $300B line, with CoinGecko pegging digital assets at roughly $299B in late September.

Drilling down, USDT continues to anchor the payment stablecoin category at about $173B in market value, even as methodologies differ across trackers and intra‑month supply moves around issuance and redemptions by payment stablecoin issuers.

The yield backdrop explains much of the economics: 3‑month Treasurys sat near 4.00% on Sep 23, while Circle's reserve fund showed a 7‑day SEC yield around 4.30% on Sep 8. That short‑end carry flows directly into payment stablecoin issuer income on fully reserved, cash‑and‑T‑bill portfolios, and it's the reference point for any pass‑through yield products that sit adjacent to payment stablecoins under the GENIUS Act framework.

Those mechanics are visible in financials. In Q2, Circle reported $658M in revenue from its payment stablecoin reserves—evidence that even modest moves in front‑end rates can materially influence permitted payment stablecoin issuer top lines, distribution partners, and incentives across digital asset ecosystems.

For operators and treasurers at financial institutions, the picture is clear: track the float, watch the front end, and translate basis‑point moves into run‑rate income to understand who captures value in digital asset markets and how competition will react.

Key Takeaways:

• Market size and leadership: the payment stablecoins float sits near $300B, with USDT still the largest share by a wide margin among payment stablecoin issuers.
• Yields drive economics: front‑end rates around 4%–4.3% remain the core engine of payment stablecoin issuer income and adjacent fund products.
• Follow the money: issuer revenues tied to reserve assets shape distribution deals, pass‑through offers, and competitive positioning across rails.

Regulatory Framework: U.S. GENIUS Act Implementation, EU MiCA/PSD, and UK FCA Updates

The regulatory clarity center of gravity moved decisively this summer: in the U.S., the GENIUS Act stablecoin regulatory framework became law on July 18, 2025, while the EU shifted from rulemaking to active supervision under MiCA and the UK advanced a dedicated regime for digital assets.

In the United States, the GENIUS Act establishes "permitted payment stablecoin issuer" pathways and requires fully backed payment tokens, including 1:1 reserves and monthly public disclosures—clarifying Bank Secrecy Act/anti money laundering coverage and that compliant payment stablecoins aren't treated as securities. The GENIUS Act tasks Treasury with establishing national innovation frameworks while addressing financial stability risks and illicit finance concerns through innovative methods.

The Department of the Treasury must address financial stability risks under the GENIUS Act by issuing proposed regulations that establish appropriately tailored regime standards for permitted payment stablecoin issuers, including due diligence requirements, customer identification protocols, and reporting suspicious activity obligations. The GENIUS Act also empowers Treasury to identify factors for evaluating foreign payment stablecoin regimes and potential illicit finance risks, ensuring sanctions obligations and anti money laundering compliance for digital asset service providers.

Across the EU, MiCA's means‑of‑exchange guardrail is now a practical constraint: the cap triggers once usage tops 1 million/€200M per day in a single currency area for payment stablecoins, while the broader payments package made headway as the Council position on PSD3/PSR opened trilogues to tighten anti‑fraud protections and fee transparency for digital asset markets.

In the UK, HM Treasury published a draft SI to bring fiat‑backed payment stablecoin issuance and custody into the FSMA perimeter, with the FCA's CP25/14 and CP25/15 detailing issuer, custody, and prudential rules for regulated financial institutions, and the Bank of England preparing a complementary systemic‑stablecoin consultation to address financial stability concerns.

Taken together, these moves elevate payment stablecoins from policy gray zones to defined regulatory and supervisory regimes—raising compliance bars but providing regulatory clarity and paving clearer paths for enterprise‑grade, cross‑border use of digital assets across foreign jurisdictions.

Key Takeaways:

• U.S. now has federal stablecoin law through the GENIUS Act, mandating fully backed structures and monthly reserve disclosures under a "permitted payment stablecoin issuer" framework with Department of the Treasury oversight.
• EU MiCA introduces usage cap on high‑velocity payment tokens, while PSD3/PSR advances to strengthen anti‑fraud protections and transparency in digital asset markets.
• UK is aligning perimeter, prudential, and systemic rules across HMT, FCA and BoE—clarifying obligations for payment stablecoin issuers and custodians.

Digital Assets Adoption: Visa Settlement, RLUSD and Tokenized MMFs, and Payment Stablecoins

The signal is getting hard to ignore: tokenized cash equivalents have surged 80% to $7.4B this year, a clear sign that yield‑bearing "cash on chain" digital assets are moving from experiments to working treasury tools for financial institutions.

That momentum now meets mainstream payment rails. Visa expanded its multi‑coin, multi‑chain reach with broader stablecoin settlement support—adding payment stablecoins PYUSD and USDG, plus Stellar and Avalanche—while merchants on Shopify can accept USDC payment stablecoin within their existing checkout flows, defaulting to fiat settlement without new gateways.

New entrants are also finding institutional homes among regulated financial institutions. DBS will list Ripple's RLUSD payment stablecoin alongside Franklin Templeton's tokenized MMF (sgBENJI) on its digital exchange, enabling cross‑asset swaps and future collateralization—an integration that underscores the interplay of payment stablecoins and tokenized funds on a regulated venue DBS listing. In parallel, BlackRock's BUIDL crossed $1B AUM, reinforcing the trend toward on‑chain, yield‑bearing cash equivalents that can live next to, or even backstop, payment tokens under GENIUS Act compliance.

For operators, the stack is coming together: settlement networks that speak payment stablecoins, enterprise‑grade digital assets positioned for cross‑border flows under the GENIUS Act, and tokenized MMFs for treasury yield and collateral—all knitted into merchant and payout workflows that keep user experience familiar while unlocking 24/7 programmability and addressing money laundering concerns through proper due diligence.

The upshot is practical: faster settlement or liquidity risk management, richer treasury options for accounting purposes, and lower frictions between pay‑in, pay‑out, and working capital—without forcing teams to rewire existing commerce systems while maintaining compliance with illicit finance prevention under the GENIUS Act framework.

Key Takeaways:

• Mainstream rails are live: card networks and major commerce platforms are integrating payment stablecoin settlement and acceptance behind familiar merchant flows.
• Payment stablecoins meet yield: tokenized MMFs give treasurers on‑chain yield and collateral that complements operational payment stablecoin balances for financial institutions.
• Enterprise‑ready mix: regulated venues listing payment stablecoins next to tokenized funds point to deeper liquidity, better collateralization, and simpler cross‑border payments.

What to Watch: Financial Institutions, Department of the Treasury Oversight, and Illicit Finance Controls

The policy wind is shifting. In mid‑September, the Fed set the target range to 4 to 4‑1/4%, a downshift that tightens payment stablecoin issuer margins and raises the bar for "risk‑free" returns on payment stablecoin reserves under GENIUS Act requirements.

Supervision will harden too. The Financial Stability Board's global implementation check for digital assets lands in October 2025, while BIS warns payment stablecoins "singleness and elasticity" concerns persist—expect more focus from the Department of the Treasury on run risk, reserve quality, financial stability risks, and spillovers into T‑bills and money markets. The GENIUS Act implementation will require advance notice of proposed rulemaking in the Federal Register, with further public comment periods on illicit finance safeguards.

The revenue picture is already changing for payment stablecoin issuers. CoinDesk Data estimates the September cut trims issuer income by up to $500M annualized across leading fiat‑backed payment stablecoins, a headwind that could accelerate fee competition, push more yield‑sharing, and drive treasurers at financial institutions toward tokenized MMFs for carry while navigating GENIUS Act compliance requirements including sanctions programs and money laundering prevention.

Policy pressure will vary by foreign jurisdiction. In Europe, ECB President Christine Lagarde has urged stringent safeguards for foreign issuers under MiCA—read: tougher comparable foreign regulatory equivalence, more disclosures on illicit activity, and closer scrutiny of high‑velocity USD payment tokens operating in the bloc. The GENIUS Act addresses this through provisions for evaluating foreign payment stablecoin regimes and establishing mutual recognition where appropriate regulatory and supervisory regime standards are met.

Investment advisers and digital asset service providers must navigate evolving tax issues while maintaining proper accounting purposes documentation. The Department of the Treasury will continue issuing regulations providing guidance on consumer protection, associated penalties for non‑compliance, and requirements to report suspicious activity related to illicit finance in digital asset markets. Smart contracts and distributed ledger technology implementations must align with GENIUS Act standards to avoid creating market frictions.

Bottom line: year‑end will be defined by tighter oversight from financial institutions and the Department of the Treasury, thinner carry for payment stablecoin issuers, potential liquidity risk concerns, and sharper competition—favoring qualified payment stablecoin issuers with transparent reserve assets, resilient distribution meeting existing jurisdictional reserve requirements, and enterprise‑grade compliance with GENIUS Act provisions including illicit finance controls and proper insurance coverage where required.

Key Takeaways:

• Central banks and the Department of the Treasury are turning the screws: expect more supervision through the GENIUS Act, reserve scrutiny, and practical guardrails on foreign issuers in key markets to address illicit finance.
• Falling short‑end yields compress payment stablecoin issuer income, catalyzing fee pressure, yield‑sharing, and treasury shifts into tokenized cash equivalents at financial institutions.
• Competitive edge moves to trust and utility: clear disclosures per GENIUS Act requirements, strong rails, and enterprise integrations will matter more than headline float growth for payment stablecoins.

Put Payment Stablecoins to Work in Your Payroll—Starting Now

Regulation is clarifying through the GENIUS Act, yields are shifting, and enterprise rails are finally ready—making this the moment to operationalize payment stablecoins in payroll. Bitwage is the global payroll platform trusted by 4,500+ companies to pay 90,000+ workers across nearly 200 countries, with over $400M processed to date. Deliver same-day payments in payment stablecoins, crypto, or local currency; run W-2–compliant payroll; offer crypto-powered benefits; and fund payrolls in digital assets while paying teams in fiat or crypto. All of this comes with streamlined invoicing, expense tracking, and automated accounting for tax issues—backed by a spotless, 10-year, zero-breach security record meeting GENIUS Act standards for illicit finance prevention.

If Q4 is when you turn payment stablecoin strategy into measurable outcomes, Bitwage gets you live in days—not months—so you can accelerate settlement, reduce liquidity risk, and keep your global team paid on time across foreign jurisdictions while maintaining compliance with the GENIUS Act, Department of the Treasury requirements, and anti money laundering regulations. Make your next payroll your fastest and most compliant yet: Signup for Crypto Payroll today! Prefer a walkthrough first? Visit bitwage.com to schedule a demo and map the rollout to your stack.