Stable coin Infrastructure Investment Evolution: A VC Funding Analysis (2020-2025)

Abstract

Stable coin infrastructure has evolved from speculative cryptocurrency tools to a cornerstone of global payments, driven by shifts in venture capital (VC) funding from 2020 to 2025. Initially addressing crypto volatility, Stable coin s like USDT and USDC enable efficient trading, remittances, and cross-border payments, offering faster settlement and lower costs than traditional payment methods, though actual savings depend on the blockchain used and are usually several percent per transaction. Regulatory frameworks, such as the U.S. GENIUS Act, and bank integrations by ING and SWIFT have bolstered credibility and adoption, countering de-dollarization while extending USD reach. This study analyzes over 50 PitchBook funding rounds across issuers, ramps, integrators, and niche players, revealing a pivot from high-risk DeFi bets to regulated, payments-focused models. Funding surged to $5.285 billion in 2025, with strategics like Visa driving later rounds for scalability. Stable coin s’ $15.6 trillion transaction volume underscores their role in financial inclusion, particularly in emerging markets. Investors should prioritize compliance and partnerships to capitalize on this maturing sector, mitigating risks from consolidation and dominant players like Circle.