The IMF released an extensive overview on stablecoins, acknowledging their significant growth and attention. The paper includes market developments, use cases, potential benefits and risks, and the evolving international regulatory landscape.
Stablecoins are an important part of the crypto industry, representing the link between TradFi and DeFi.
Stablecoin Issuance Over the Past Years
The IMF highlighted that stablecoin issuance has doubled over the past two years, driven by their use in crypto trades. CMC data shows that the total market cap of top stablecoins as of December 5 is over $316,4 billion, with a trading volume of over $106 billion.
Tether (USDT) is the leader in terms of market cap with over $185,5 billion, followed by USDC with more than $78 billion.
CoinGlass data shows that the stablecoin market cap (including USDT, USDC, DAI, and FDUSD) was near $270 billion in December 2025, compared to over $120 billion during the same month in 2023.
This month, the total stablecoins market cap reached a new ATH, and it has more than doubled in the past two years, as highlighted by the IMF.
Stablecoins’ Benefits and Risks Analyzed by the IMF
The IMF also assessed the benefits and risks that stablecoins bring to the financial system.
Stablecoins’ benefits pointed out by the financial institution include the following:
- Cheaper and quicker payments, especially across borders and for remittances
- Support for economic growth
- Interoperability
- More accessibility of retail payments
- Increased competition and enhanced product diversity
- Higher efficiency in payments via tokenization
- Lower costs
- Boosted innovation
- A simpler and more comprehensive UX
- Reduced counterparty risks via integration with smart contracts
Among the potential risks posed by stablecoins, the IMF mentions the following:
- Risks related to macro-financial stability, financial integrity, and legal certainty
- A potential contribution to currency substitution
- Risks related to an increase in capital flow volatility
- Potential conflicts between domestic policies
The IMF mentions that such risks could be more pronounced in countries with high inflation, weaker institutions, or lower confidence in the domestic monetary framework.
Regulatory Landscape for Stablecoins is Evolving
The financial institution anticipates that future demand for stablecoins could arise from other use cases enabled by appropriate legal and regulatory frameworks. The US supports stablecoin regulation via its GENIUS and CLARITY Acts, and the EU has also enhanced crypto regulation via the MiCA framework.
The IMF highlighted that the rising global use of stablecoins makes international cooperation essential, stating that it continues to closely monitor developments, while providing analysis, guidance, and policy advice to member countries on crypto, including stablecoins.
A collaborative approach can help create a more resilient and inclusive financial ecosystem, paving the way for innovative solutions that can boost economic growth.
In March 2025, the IMF integrated Bitcoin and crypto into the global financial standards via the 7th edition of its Balance of Payments Manual (BPM7).
