Stablecoins Adoption Challenges: Transparency As A Barrier

Stablecoins are reshaping digital finance, offering a fast and accessible way to move money across borders. With a total supply of $214 billion and $35 trillion in transfers over the past year, they’re no longer just a niche crypto tool—they’re a growing financial powerhouse.

However, too much transparency is now presenting as a major problem that could impede their wider adoption.

Stablecoins and Transparency: A Hurdle for Mass Adoption

Artemis and Dune Analytics conducted a report on the State of Stablecoins in 2025, exploring supply, adoption, and market trends. Based on the findings, the total stablecoin supply has reached $214 billion, with up to $35 trillion in transfers over the past year.

Their transaction volume has surpassed major payment networks like Visa and Mastercard, proving their growing influence.

However, despite their rapid adoption, transparency presents a key hurdle for stablecoins. While the blockchain’s openness is great for security and trust, it is not always ideal for everyday payments.

“Crypto payments failed for one small reason that needs fixing: When sending USDC, let the recipient see the transaction but not your address. Nobody wants to reveal their wallet for a 10 USDC beer payment,” DeFi researcher Ignas remarked.  

Another user likened it to exposing your bank balance whenever you split a bill with friends. In the same way, the dominance of USDT and USDC stablecoins is apparent. Tether’s USDT and Circle’s USDC control most of the market.

Jean Rausis, co-founder of the DeFi platform SMARDEX, finds this concerning.

“The surge in stablecoin wallets shows that investors trust them during market volatility. But most of this growth is happening with centralized stablecoins that carry the same counterparty risks as traditional banks,” Rausis told BeInCrypto.

The crypto executive believes the future lies in decentralized stablecoins backed by assets like Ethereum (ETH) and featuring automated yield mechanisms.

Banks Are Paying Attention to Growing Stablecoin Regulation

The Artemis and Dune report also shows that stablecoins have already surpassed Visa and Mastercard in transaction volume. This traction has effectively attracted the attention of traditional financial institutions.

Against this backdrop, stablecoins are no longer just for crypto traders. Institutional interest is surging, with US banks now allowed to offer stablecoin services. The Bank of America (BoA) is considering launching its stablecoin, which is pending regulatory approval.

However, with greater adoption comes increased scrutiny. Privacy-focused cryptocurrencies like Monero (XMR), which solve the transparency issue by hiding transaction details, have faced legal roadblocks due to concerns over money laundering.

Despite transparency concerns, stablecoins are thriving in countries battling inflation. In places like Nigeria, they are becoming a reliable alternative to unstable local currencies. At the same time, competition is heating up, with new players looking to challenge Tether and Circle’s dominance.

For stablecoins to truly go mainstream, they must balance transparency with privacy. While regulators demand oversight, everyday users do not want to broadcast their financial history. Technologies like zero-knowledge proofs and selective disclosure could offer solutions, allowing users to control what information they share.