Federal Reserve Study Finds Stablecoins Remain Crypto-Focused, With Less Than 1% Used for Real Payments

According to a new research briefing from the Federal Reserve Bank of Kansas City, stablecoins remain overwhelmingly tied to crypto finance activity rather than real-world payments, with less than 1% of stablecoin usage linked to traditional payment functions. The study, authored by lead payments specialist Franklin Noll, estimates that 48.8% of all stablecoins are currently used as trading assets inside the crypto financial system, including centralized exchanges (26.4%), decentralized finance protocols (17.2%), and blockchain infrastructure systems (5.1%).

The report estimates only $2 billion worth of stablecoins support payment activity out of a broader market capitalization of $300.5 billion, challenging industry claims that stablecoins are rapidly transforming global payments infrastructure.