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Stablecoin Card Spending to Reach $50 Billion by 2028, RedotPay Forecasts
Global spending using stablecoin-linked payment cards is forecast to quadruple to $50 billion annually by 2028, according to a new projection from Hong Kong-based payments company RedotPay. The forecast points to the accelerating adoption of dollar-pegged cryptocurrencies for everyday transactions.
A Fourfold Increase
The projection, announced by the firm on Tuesday, anticipates a significant expansion from current levels. This growth is supported by recent data from crypto analytics company Paymentscan, which showed that stablecoin card spending surpassed $1 billion in a single month for the first time in July, marking a record high.
Stablecoins are a class of cryptocurrency designed to maintain a stable value by being pegged to an external asset, typically a fiat currency like the U.S. dollar. This characteristic makes them more suitable for payments and commerce compared to more volatile cryptocurrencies.
Drivers of Adoption
RedotPay identified emerging markets as a primary engine for this growth, with Latin America and Africa showing the highest adoption rates. The company attributes the trend to a combination of local market needs and improving financial infrastructure.
Ad"The growth is driven by the confluence of several factors: real payment pain, easy stablecoin access, strong fiat off-ramps, and regulatory clarity," said Jonathan Chan, co-founder and head of partnerships at RedotPay. The firm noted that stablecoins are gaining traction for cross-border payments, corporate treasury operations, and as a store of value in economies with volatile local currencies.
Market Context
The forecast underscores the increasing integration of digital assets into mainstream financial systems. RedotPay, a major platform in this sector, stated it serves over 8 million users globally.
The company also reported that its total annualized payment volume, which includes both card spending and account top-ups, currently exceeds $14 billion. This figure reflects the growing scale of the ecosystem facilitating stablecoin-based commerce.
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