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IMF Sounds Alarm as Stablecoins Overtake Crypto Rivals in Cross-Border Use and Top $300 Billion

An IMF analysis warns privately issued dollar tokens extend U.S. monetary reach without the safeguards of bank or money‑fund backstops.

Overview

  • Cross-border stablecoin transfers hit record highs in 2025 and surpassed Bitcoin and Ethereum, with Asia leading volumes and the fastest growth in Africa, Latin America, and the Middle East.
  • Dollar-pegged stablecoins now exceed $300 billion in circulation and logged more than $23 trillion in trading volume in 2024, signaling a shift from exchange utility to global payment rails.
  • Tether remains the dominant issuer with roughly $190 billion USDT outstanding, and major issuers back tokens with T-bills and repos, becoming meaningful marginal buyers in short-term U.S. debt.
  • The IMF highlights concentration risk and the lack of formal liquidity backstops, and Standard Chartered estimates emerging-market banks could face up to $1 trillion in deposit outflows.
  • Regulation remains fragmented as the U.S. GENIUS Act creates a scalable onshore regime, and Citi has raised its 2030 issuance forecast to $1.9 trillion in its base case and $4 trillion in a bull case.