The cryptocurrency landscape in 2025 is increasingly influenced by institutional adoption and the rise of stablecoins, highlighting rapid advancements in blockchain technology that support wider mainstream usage, according to venture capital firm Andreessen Horowitz (a16z).
In its recent State of Crypto report, a16z emphasized the growing involvement of traditional financial powerhouses such as BlackRock, Visa, Fidelity, and JPMorgan Chase, alongside fintech firms like Stripe, PayPal, and Robinhood, all of which are expanding their footprint in the digital asset domain.
This expansion is being fueled by enhancements in blockchain infrastructure, with certain networks now handling more than 3,400 transactions per second—a more than 100-fold increase in throughput over the last five years.
This technological evolution has spurred the ongoing adoption of stablecoins, fiat-pegged digital currencies that can be transferred across the internet without dependency on traditional payment systems. The report cited $9 trillion in stablecoin transactions over the past 12 months, representing an 87% rise from the previous year.
On a raw basis, stablecoin transactions totaled $46 trillion during the same timeframe.
Related: Crypto Biz: Wall Street giants bet on stablecoins
“In previous years, stablecoins were primarily used for settling speculative crypto trades; over the last couple of years, they have evolved into the quickest, most affordable, and most global method to send a dollar,” the report stated.
Regulatory advancements are also propelling adoption. In the United States, the newly enacted GENIUS Act establishes clearer oversight and reserve requirements for issuers to ensure transparency and consumer protection. In the UK, where legislative progress has been slower, regulators are striving to introduce a stablecoin framework by the end of next year.
Beyond stablecoins, a16z noted heightened institutional participation within the crypto sphere, pointing out the emergence of spot exchange-traded funds (ETFs) and initiatives from major institutions, including Citigroup, Fidelity, JPMorgan, and Morgan Stanley, to offer or expand crypto-related services.
Related: BlackRock sees record quarter for iShares ETFs as Bitcoin, Ether demand surges
Stablecoins are a “global macroeconomic force”
A key insight from the State of Crypto report is that stablecoins are increasingly regarded by a16z as a “global macroeconomic force.” The report highlights that over 1% of all US dollars now exist as stablecoins on public blockchains.
According to a16z, stablecoins collectively hold over $150 billion in US Treasuries, making them the 17th-largest holder of US government debt, surpassing many sovereign nations.
A significant portion of that exposure is attributed to Tether, the market leader, which holds approximately $127 billion in Treasury bills.
Overall, the stablecoin market has grown to around $316 billion, according to data from CoinMarketCap. In addition to Tether’s USDt (USDT) and Circle’s USDC, both fully collateralized stablecoins, Ethena’s synthetic dollar, USDe, is gaining popularity, with a circulating supply of around $11 billion.
Related: Crypto is one ‘growth cycle’ away from mainstream adoption, 5B users
