Stablecoins Primed to Finance Approximately $1 Trillion in Worldwide Transactions by 2030: Keyrock Report
In the ever-evolving landscape of digital finance, stablecoins have emerged as a significant player. With a market capitalization exceeding $271 billion as of August 2025, these digital currencies are providing companies with a faster, more profitable way to use their cash.
Kevin de Patoul, CEO of Keyrock, has stated that large institutions are already using stablecoin infrastructure. He emphasizes that the opportunity now is to scale the use of stablecoins. Understanding what's already in place is the starting point for institutions to use stablecoins, according to De Patoul. Wallets, custody, and compliance rails for stablecoins already exist today.
However, the use of stablecoins is not without its regulatory challenges. In the U.S., the recently passed GENIUS Act of July 2025 establishes the first federal stablecoin regulatory framework. This law requires that payment stablecoins must be backed 1:1 by U.S. dollars or Treasuries and subjects issuers to strict reserve, redemption, and disclosure rules.
The Act primarily aims to ensure stablecoins are used as steady payment vehicles rather than yield-generating investment products. It prohibits issuers from marketing stablecoins as federally insured or backed by the government, and it bars issuance by entities with certain risks or conflicts.
However, the Act does not explicitly prohibit platforms from offering yield or interest on stablecoins held by customers, leading to a regulatory gray area. Major stablecoin holders like Coinbase and PayPal provide "rewards" or yield schemes without classifying them as interest payments.
Despite these regulatory challenges, stablecoins are rapidly evolving to become core components of the global financial system. They allow people to make payments up to 13 times cheaper than banks, which can charge about 13% to send $200 and often take several days to complete. So far, over $600 million has already been paid out through yield-bearing stablecoins.
The stablecoin market is substantial and growing rapidly, with a current market volume around $280 billion, dominated by Tether (USDT) and USD Coin (USDC), which together are over $230 billion in market cap. The Treasury Department projects the stablecoin market could grow to as much as $2 trillion by 2028, driven by increasing adoption in payments, decentralized finance (DeFi), and tokenized real-world assets.
As stablecoins grow in popularity, more of these funds are likely to be put into stablecoins that can earn yield. Decentralized finance platforms are becoming "working capital engines," according to a report. Mansa Finance reports that its capital turns over about 11 times per month, significantly more than traditional fintechs like Wise.
The regulatory framework aims to shift stablecoins from speculative or risky investment tools to regulated financial instruments that could foster broader adoption and reinforce U.S. leadership in digital finance while protecting consumers.
In Hong Kong, a stablecoin framework has come into effect this month. Stablecoins are projected to capture 12% of global cross-border payment flows and reach $1 trillion in annual payment volume by 2030, according to a report by investment firm Keyrock.
In summary, U.S. stablecoin issuers must now adhere to strict reserve and operational requirements without offering interest as banks do, but platforms can still provide yield-like rewards, creating tension between regulators and industry. This regulatory environment aims to stabilize the stablecoin ecosystem amid rapid growth and increased mainstream usage. The market trend shows a significant expansion, with stablecoins playing a key role in future digital finance infrastructure despite unresolved regulatory challenges around yield products.
[1] Coinbase blog post on GENIUS Act [2] The Block's report on GENIUS Act [3] CoinDesk's report on GENIUS Act [4] Coinbase's USDC yield program [5] PayPal's PYUSD yield program
- Despite the regulatory challenges, platforms like Coinbase and PayPal are offering yield-like rewards on stablecoins, indicating a shifting trend in the digital finance industry where stablecoins are becoming potential investment avenues for finance institutions.
- With the recent passing of the GENIUS Act, U.S. stablecoin issuers will have to follow strict operational and reserve rules, thereby changing the traditional investment landscape in stablecoins, encouraging more focus on technology-driven finance at the same time.
