1 December 2025

The Evolution of Stablecoins: From Trading Tools to Global Payment Backbone
Stablecoins are transitioning from mere trading instruments to essential components of global payment systems. This shift is highlighted by increasing settlement volumes and widespread adoption, positioning Ripple s RLUSD favorably as blockchain transactions surpass traditional networks.
Ripple s Senior Executive Officer, Reece Merrick, emphasized this evolution on November 28. He noted that stablecoins have evolved beyond their initial purpose as a simple entry point for cryptocurrency purchases.
Fast forward to 2025 whilst a large portion is still used for this purpose, stablecoins are also being used for actual payments and we re seeing this huge demand at Ripple.
Merrick outlined various use cases driving this adoption:
Cross-border remittances, payroll in emerging markets, B2B settlements, merchants accepting stablecoins, and this is just the beginning.
He described stablecoins as the internet s new payment layer, growing 150 CAGR while legacy rails stagnate.
He also highlighted the regulatory framework supporting Ripple s dollar-linked asset, RLUSD:
RLUSD is issued under a New York Department of Financial Services NYDFS Limited Purpose Trust Company Charter.
This charter is recognized for its stringent regulatory standards, ensuring operational and compliance safeguards.
Merrick pointed to significant growth in on-chain settlement trends. He cited data showing that annual stablecoin transfers have surged from approximately 0.5 trillion in 2020 to an expected 46 trillion by 2025. This growth indicates a shift towards blockchain-enabled settlement, driven by institutional adoption and cost efficiency.
Analysts suggest that this momentum supports the case for broader stablecoin use, especially in emerging markets. These markets are increasingly utilizing stablecoins for remittances, payroll, and efficient payment solutions.