Stablecoins dominate on-chain transactions, becoming a turning point for regulation and compliance in 2025

【Blockchain Rhythm】By 2025, the changes in the crypto industry are already quite evident. The era of speculation is gradually fading, replaced by the implementation of regulatory frameworks, improved infrastructure, and the expansion of real-world applications.

Stablecoins are at the center of this wave of transformation. Although Bitcoin still accounts for half of the market capitalization, stablecoins have already captured over 50% of the global on-chain transaction volume. Payments, remittances, trading—stablecoins penetrate every corner of the crypto market, becoming an important bridge connecting traditional finance and the Web3 world.

Why are stablecoins so crucial? Their strong liquidity and stable prices make them more practical for payments and trading. But precisely because of these features, regulators pay special attention to them. Centralized issuers can freeze and burn assets, making stablecoins powerful tools in combating financial crimes.

Data shows that in 2025, illegal crypto fund flows reached $154 billion, a 162% year-over-year increase. State actors and sanctions evasion activities have significantly increased. However, don’t overinterpret—these illegal activities account for less than 1% of the entire crypto transaction system.

As regulatory frameworks like MiCA move from planning to implementation, stablecoins have become a key link connecting the crypto market, geopolitical issues, and financial regulation. This trend is likely to continue into 2026.