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Chronicles

The story behind the story

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Visa and Allium Labs: less than 10% of the ~$2.2T stablecoin transactions in April were “organic payments activity”, which excludes bots and large-scale traders

- Less than 10% of stablecoin transactions are “organic:” Visa  — PayPal, Stripe are among fintechs expanding in stablecoins

Bloomberg Emily Nicolle

Context & Ripple Effects

Visa and Allium Labs’ analysis challenges the use of raw on-chain turnover as a proxy for consumer or merchant adoption. It establishes a baseline for interpreting later reports of rising stablecoin volume, including Visa’s reported increase in stablecoin transaction volumes and regularly active payment wallets.

The distinction matters as payment companies move from observing stablecoin activity to building operational rails: Visa later introduced a platform intended to make stablecoins easier for banks and merchants to use, while Stripe and other fintechs were reported to be launching stablecoins.

First-order effects

  • Headline transaction-volume figures become less informative for Visa, fintechs, and their institutional customers unless they separate bot and large-trader flows from recurring payment use.
  • The findings put pressure on stablecoin-payment advocates to substantiate adoption with payment-specific measures rather than aggregate blockchain activity.

Second-order effects

  • Payment networks and fintechs have an incentive to develop better activity classification, merchant-payment, and repeat-wallet metrics as they assess where stablecoins fit alongside existing rails.
  • Competitors’ product claims will increasingly be judged against evidence of actual settlement use, not just token supply or on-chain turnover; this is especially relevant as fintechs and banks moved to launch stablecoins.

Third-order effects

  • If payment-specific measurement becomes standard, the stablecoin market could split more clearly between trading/liquidity infrastructure and regulated payment infrastructure, with different economics and risk requirements.
  • The durable contest shifts from generating blockchain volume to integrating stablecoins into bank, merchant, and potentially software-mediated payment workflows—an arc visible in work on agentic-payment infrastructure.

The trend: Stablecoins are moving from a volume-led crypto narrative toward a utility-led payments narrative in which measurable recurring use and integration matter more than gross transaction totals.