Stablecoins Hit $310 Billion: Govts Are Quietly Rewriting Money

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As stablecoins explode past $310 billion in 2025, Djoomart Otorbaev says states and regulators are turning a crypto tool into a macro-financial weapon

By S JHA

Mumbai, December 30, 2025 —Former Prime Minister of the Kyrgyz Republic Djoomart Otorbaev has brought attention to explosive valuation gains of stablecoins. He said that the government is pumping the stablecoins with subtle moves.

In a long post—stablecoins at $310 Billion: How Governments Are Quietly Rewriting Money, Otorbaev wrote: “The unthinkable has already happened—just not loudly. In 2025, stablecoins crossed a psychological and political threshold.”

He stated that stablecoins were once dismissed as a technical sidekick to crypto speculation but “they have become a macro-financial instrument.” “The stablecoin market has surged past $310 billion, up nearly 50% in a single year, and transaction volumes now exceed $27.6 trillion, surpassing the combined transaction volume of Visa and Mastercard,” added Otorbaev.

The geopolitics analyst stated that “this is no longer a story about fintech innovation. Stablecoins succeeded where many grand monetary reforms failed: they solved a painfully practical problem.”

“Cross-border payments are slow, opaque, and expensive. According to KPMG, stablecoins can cut transaction costs by up to 99% and reduce settlement times from days to minutes,” he added.

The analyst further explained reasons for gains for stablecoins: No correspondent banks, no frozen liquidity, no ritualised inefficiency. “J.P. Morgan, PayPal, Visa, Stripe, and Circle are not experimenting out of curiosity—they are adapting to an irreversible shift in infrastructure,” he added in the post.

Stating that stablecoins in 2025 not just attained scale, but legitimacy, Otorbaev argued that “governments have entered the arena. The US effectively blessed dollar-pegged stablecoins through the GENIUS Act, creating federal rules for issuance and reserves.”

“The European Union rolled out MiCA, which licenses issuers and brings stablecoins into the regulatory perimeter. HongKong, Singapore, Israel—each is building legal rails for what was once regulatory grey matter,” he added.

Otorbaev also stated that “Central Asia offers the most striking case study. Kyrgyzstan became the first country of the former Soviet Union to embed stablecoins into national legislation.”

The analyst argued that “stablecoins strengthen currency circulation, reduce dependency on foreign clearing systems, and, in the case of dollar-based tokens, create direct demand for US Treasuries.”

Tether and Circle alone hold over $127 billion in US government bonds, wrote Otorbaev, adding: “For sanctioned economies and frontier markets, stablecoins offer something even more valuable: access to global trade without asking permission.”