Who Uses Stablecoins and Why

Understanding usage patterns reveals why 0% interest doesn't drive users to alternatives—most prioritize transaction utility over yield

Total $155B
Trading / Transactional
Hours to days holding for exchange transfers and crypto trading pairs
65%
Cross-Border Payments
International remittances and business settlements
17.5%
DeFi Yield Farming
Deposited in lending protocols earning 6-10% yields
12.5%
Store of Value (Emerging Markets)
Held in countries with currency instability (Argentina, Turkey, Venezuela)
12.5%
Key Insight: Self-Selection Explains 0% Acceptance
65% of users hold stablecoins for hours or days—foregone interest is negligible ($37 on $100K for 3 days). Another 12.5% earn yields elsewhere through DeFi. The 12.5% using stablecoins as store of value often can't access US money market funds. People who primarily value yield over speed already use traditional money market funds earning 4.5% with FDIC insurance. Stablecoin users self-select for transaction utility, which explains why PayPal's 3.7% interest hasn't captured market share.
Sources: Chainalysis 2025 Global Stablecoin Report, Coinbase Research on transaction patterns, Kaiko data on exchange activity, Stripe cross-border payment data. Usage percentages represent mid-range estimates from multiple data sources.
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