Stablecoin Boom Fueled by Emerging Markets, Not Western VCs

Stablecoin transaction volume surpassed $28 trillion globally in 2025, exceeding Visa and Mastercard combined. Yet the majority of founders and venture capital remain concentrated in the United States and Europe.

The largest markets are elsewhere. Nigeria has over 26 million crypto users, with 59% holding USDT. In Argentina, stablecoin purchases make up over half of all exchange transactions. Brazil registered $318.8 billion in crypto inflows through mid-2025, with over 90% flowing through stablecoins.

Data from Stablescape shows that of more than 3,000 stablecoin and crypto-fintech companies tracked globally, 1,300 are based in the U.S. Emerging markets across Latin America, sub-Saharan Africa, Southeast Asia, and the Middle East represent just 32% of tracked companies, despite generating the majority of real-world stablecoin volume.

In these markets, stablecoins are not just infrastructure; they are the product. They provide a reliable way to hold dollar value outside failing banks and collapsing currencies. B2B stablecoin payments across Latin America grew from under $100 million per month in early 2023 to over $6 billion per month by mid-2025.

Despite this, venture capital remains misaligned. In 2024, 30 U.S. VC firms captured 75% of all capital raised by U.S. funds. Their pattern recognition from San Francisco provides little signal for founders in Lagos, Buenos Aires, or Manila. The exit market is forming in these corridors, with examples like OPay seeking a $4 billion valuation and Modern Treasury acquiring stablecoin startup Beam for $40 million.

The stablecoin market has split. One side builds enterprise infrastructure for regulated Western institutions. The other builds dollar access for billions in unstable monetary systems. The latter has the demand, but is underfunded. Companies like Kulipa and Mural Pay are building for these corridors.

The next generation of winning stablecoin companies will be founded in Lagos, São Paulo, and Manila. The funds investing now will reap the biggest returns over the next decade.