Stablecoins are rewriting the rules of the game for dollar hegemony.

A detail that illustrates the issue well is that by the end of 2024, Tether will have become the seventh largest holder of U.S. debt in the world, surpassing Canada and Mexico. This is not a coincidence, but rather the opening of the “digital dollar” era.

How crazy is the scale of stablecoins?

In 2024, the on-chain stablecoin transaction volume reached $15.6 trillion—20% higher than Visa's annual transaction volume. Although its market cap is only $300 billion, which seems insignificant, from another perspective: the Federal Reserve's M2 money supply is about $22 trillion, and stablecoins only account for 1%.

What does this 1% mean?

This means there is still 99% room for growth. If stablecoins only capture a small portion of the global circulation of dollars, the market value could soar to several trillion levels.

Data is more intuitive:

• Daily on-chain stablecoin trading > 100 billion USD
• The total amount of stablecoin transfers in 2024 is $27.6 trillion (surpassing the sum of Visa and Mastercard).
• In Q4, the daily average transaction amount of stablecoins surpassed mainstream credit card networks for the first time.

From “Petrodollar” to “Code Dollar”

The American trick is very clear: in the 1970s, they relied on petrodollars to export dollars and secure U.S. Treasury bonds; now they have changed their guise - using stablecoins to export dollars at “internet speed” and secure U.S. Treasury bonds.

Key data: Tether alone holds $180 billion in U.S. Treasuries. For every USDT issued, it is equivalent to overseas investors buying one more U.S. Treasury. This is the modern version of the “petrodollar cycle”.

The U.S. government also understands this logic. The GENIUS Act signed in 2025 mandates that stablecoins must be 100% backed by U.S. Treasury bonds and cash. In other words—every newly issued stablecoin automatically becomes a buyer of U.S. Treasury bonds.

When Trump signed, he said directly: “This is good for the dollar, good for the country.” Translation: This helps us to shear the global sheep.

Emerging Markets: Stablecoins Have Become the “Financial Lifeline”

The story on the other side of the Earth is even more incredible:

Argentina: 62% of cryptocurrency transactions use stablecoins, and USDT can even be sold at a premium of 30% (30% higher than the official exchange rate!) What does this indicate? People trust digital dollars far more than their own banks and government.

Turkey: Inflation rate exceeds 60%. The trading volume of stablecoins in 2024 is $38 billion, accounting for 4.3% of GDP — the highest ratio in the world.

Brazil: 70% of exchange withdrawals are made in USDT/USDC.

Africa: The largest payment company Flutterwave has an annual transaction volume of $40 billion and has just designated Polygon as the default blockchain for cross-border stablecoin settlements, covering more than 30 countries.

Essentially, stablecoins address three issues:

1. Avoid capital controls - Get US dollars 24/7 using your mobile phone.
2. Cheap and fast - transaction fees are just a few cents, settlement in minutes.
3. Stable Pricing - When the local currency plummets unpredictably, at least stablecoins retain their value.

The Real Competition of On-Chain Infrastructure

Ethereum remains the king of “institutional-grade programming currency networks”, but Polygon is booming in emerging markets:

• Over 50% of global stablecoin trading volume comes from Polygon (in some regions up to 70%)
• October single month: 128.8 million transactions, 3.01 million active addresses
• The market cap of stablecoins is $3.1 billion, ranking third globally (only behind Ethereum and TRON)
• Stripe's monthly transaction volume exceeds $8 million after integrating with Polygon

Institutions are also starting to bet: BlackRock's BUIDL fund (the largest US Treasury token product globally) invested $500 million in Polygon (second only to Ethereum).

What does this mean?

1. New Form of Dollar Hegemony: From Oil Price Pricing Power → Digital Payment Standards
2. New Sources of Demand for U.S. Treasuries: Foreign central banks are reducing their holdings, while stablecoin issuers are stepping in.
3. The Double-Edged Sword of Emerging Markets: Achieving a stable payment system, but further dollarization.
4. Significant Changes in Infrastructure: Future cross-border remittances, trade settlements, and payroll distributions may all occur on-chain.

The key figures are here: every stablecoin transaction reinforces the global position of the US dollar. And this time, no one can sell oil to resist it - in the global digital economy, everyone has to use it.

In the words of Polygon co-founder Sandeep: This is no longer a theoretical discussion, this is happening in real time. Billions (soon to be trillions) of stablecoins are flowing on networks like Ethereum and Polygon, fundamentally rewriting the way value is transferred.