The transaction volume for stablecoins—digital tokens designed to maintain a steady value, often pegged to the US dollar—hit $27.6 trillion in 2024. These coins are now powering faster, lower-cost transfers across borders, and the next evolution of that trend is here: stablecoin cards.
A stablecoin card works like a regular debit or credit card. But instead of drawing from a bank account, it uses your digital-asset balance (such as USDC or USDT) to make purchases. Each transaction includes a near-instant conversion through the card network, swapping the user’s stablecoins for local currency at checkout so the payment can settle like any other card transaction.
Below, we’ll look at how stablecoin cards work, why they’re gaining traction, and what their growth means for payments, businesses, and the future of digital finance.
What’s in this article?
- What is a stablecoin card?
- How does a stablecoin card work?
- Why are stablecoin cards gaining popularity now?
- What are the benefits of using a stablecoin card?
- What challenges do stablecoin card programs face?
- How are leading companies using stablecoin cards?
- What role will stablecoin cards play in the global financial system?
What is a stablecoin card?
A stablecoin card is a payment card that draws from a balance of stablecoins: digital assets typically pegged to a fiat currency such as the US dollar or euro. Each stablecoin is designed to maintain a 1:1 value with its underlying currency, which means you can spend crypto that behaves like cash instead of a more volatile investment.
Stablecoin cards run on existing payment networks, such as Visa or Mastercard, so they work anywhere traditional cards are accepted, even if the seller has never touched crypto. Stablecoin cards turn what’s often seen as a niche digital asset into spendable money by linking aspects of traditional finance’s stability with the accessibility and speed of blockchain. In practice, they make the concept of “digital cash” a reality.
How does a stablecoin card work?
A stablecoin card functions like a regular debit card, but instead of pulling money from a bank account, it draws from your balance of stablecoins. This allows stablecoin cards to plug directly into global payment networks such as Visa or Mastercard while still being powered by blockchain.
Here’s what happens under the hood:
- Funding the card: You load your account or linked wallet with stablecoins such as USDC or USDT. Depending on the setup, the stablecoins might be held by a card provider or in your own self-custody wallet.
- Making a purchase: When you pay with the card, the platform either settles in stablecoins or automatically converts the exact amount of stablecoin needed into local currency at the moment of the transaction. Spend $50, and it deducts 50 digital dollars from your balance while sending $50 in fiat to the seller.
- Conversion: If converting to fiat, the conversion happens almost instantly through liquidity partners or exchanges, so the seller gets paid in their normal currency. They don’t see or handle any crypto.
Many stablecoin-card programmes use a custodial model: the issuing fintech or exchange holds users’ stablecoins and handles conversion automatically. But a growing number adopt non-custodial or hybrid models, where the user retains control of their assets until the moment of spend, and smart contracts trigger the conversion as you spend. Bridge card users can spend directly from the stablecoin balance in their non-custodial wallet via smart contracts without needing to top up a separate balance.
Why are stablecoin cards gaining popularity now?
Stablecoin cards are emerging at the intersection of major financial and technological shifts.
A few forces are driving their rise:
- Exploding stablecoin adoption: Stablecoins are the fastest-growing segment of the crypto economy, representing 30% of all onchain crypto transaction volume. As more people and businesses hold them for stability and liquidity, the next logical step is finding ways to spend them directly.
- Demand for faster, cheaper payments: Traditional cross-border transfers tend to take longer and cost more. Stablecoins move value almost instantly and at a fraction of the cost. A stablecoin card extends that benefit to everyday transactions and gives people and businesses a faster way to pay globally.
- Institutional momentum: Major financial institutions and payment networks, such as Visa, are now integrating stablecoins, signaling legitimacy and scalability.
- Use in emerging markets: In countries with inflation or limited banking access, stablecoins provide a practical alternative to volatile local currencies. Paired with a payment card, they become an important part of daily spending and commerce.
- Evolving regulation: Governments are starting to formalize stablecoin rules through legislation such as the GENIUS Act in the US, which can improve trust for both users and issuers. Better oversight encourages responsible innovation and makes launching stablecoin card programs easier across borders.
What are the benefits of using a stablecoin card?
Stablecoin cards make digital assets practical for everyday use. From the point of view of both consumers and businesses, they combine the accessibility of crypto with the reliability of traditional payments.
Here’s what they unlock:
- Spend crypto like cash: A stablecoin card turns your digital assets into money you can use anywhere. You can buy groceries, pay subscriptions, or book travel directly from your stablecoin balance, all without transferring funds through a bank first.
- Avoid crypto volatility: Because stablecoins are usually pegged to fiat currencies, their value tends to stay stable. Your purchasing power remains steady when you spend.
- Lower costs for global spending: Traditional cards typically charge around 3% in fees for international purchases, which can add up over time. Stablecoin cards bypass banking intermediaries, which can reduce or eliminate foreign transaction fees. That can translate into meaningful savings for global businesses.
- Pay across borders: Stablecoin cards make it easier to spend across countries without worrying about exchange rates or transfer limits. A stablecoin backed by dollars can be used anywhere a major card network is accepted, which simplifies international commerce and travel.
- Access unbanked populations: Because they don’t require a traditional bank account or credit line, stablecoin cards can expand access to digital payments. Anyone who can hold stablecoins and complete identity verification can participate in the global economy.
- Settle faster and more transparently: Transactions settle near real time when settling in stablecoins, powered by blockchain infrastructure that provides a straightforward, auditable record of payments. This has the potential to improve cash flow for businesses and build trust for users.
- Earn better rewards: Some programs come with attractive cashback or crypto rewards, which give users a way to turn everyday spending into a way to build digital assets.
What challenges do stablecoin card programs face?
For all their promise, stablecoin cards still face hurdles in regulation, trust, and execution.
Here are some of the most important challenges:
- Regulatory uncertainty: Rules on how stablecoins can be issued, backed, or used differ by country. Card issuers must navigate evolving compliance frameworks for money transmission and electronic money.
- Compliance and security: Because stablecoins can move easily across borders, regulators demand strict Anti-Money Laundering (AML) and identity checks. Custodial platforms also carry the burden of protecting large amounts of customer crypto, so strong security measures are important.
- Dependence on stablecoin stability: The model only works if the stablecoin holds its peg. If reserves are mismanaged or market trust falters, that one-to-one value can slip. Programs built around a single coin are especially exposed, which is why transparency and third-party audits are essential.
- Reliance on traditional partners: Stablecoin card programs usually need banks or licensed issuers to connect to payment networks. If those partners pull back due to risk or regulation, programs can be disrupted overnight. This dependency spotlights how intertwined crypto innovation still is with the traditional system.
- User education and experience: Even though stablecoin cards look familiar, the mechanics, such as funding wallets, understanding fees, or handling taxes, can be confusing to consumers. Building intuitive, trustworthy interfaces and clear guidance will be crucial for mainstream adoption.
How are leading companies using stablecoin cards?
Stablecoin transactions overall have reached multi-trillion-dollar levels, and stablecoin cards are shifting from niche experiments to workplace tools. The proof lies in numbers and partnerships.
Here are some examples:
- Networks piloting stablecoin settlement: In 2025, Visa announced that it had settled over $225 million in stablecoin transactions with participating clients to date. Now, it’s expanding to seven-day-a-week settlement with more currencies and blockchains.
- Fintechs providing business-focused stablecoin cards: Some startups use stablecoin cards to serve global teams and treasuries, allowing companies to hold stablecoins and pay vendors or employees wherever they are.
- Geographic reach and global ambition: Stablecoin-funded cards are already active in several regions, enabling users to spend tokens pegged to major currencies anywhere traditional card networks are accepted. This helps them cross borders without the friction of local banking or exchange services.
What role will stablecoin cards play in the global financial system?
Stablecoin cards might seem like another fintech gadget, but their ripple effects could reshape payments, inclusion, and infrastructure.
Here’s how:
- Bridging digital money with legacy payments infrastructure: By enabling users to spend stablecoins via card networks, these cards connect blockchain-based assets with everyday commerce. That link is meaningful because it makes value transfer usable without forcing businesses or consumers to change behavior.
- Promoting financial access globally: In regions with volatile currencies or limited banking infrastructure, stablecoin cards can act as spending mechanisms for USD-pegged digital dollars. For example, 2025 estimates show over $4 trillion in stablecoin transaction volume year-to-date. This kind of scale means that when stablecoins are paired with cards, they can deliver real utility across borders and underserved markets.
- Enabling new business and treasury models: Businesses can hold part of their treasury in stablecoins and let employees or vendors spend via cards in fiat locally. The easy conversion and global network open opportunities for cross-border teams, contractors, and digital-native business models.
Bridge lets businesses launch and manage their own stablecoin card—complete with a fully integrated digital financial services experience onchain. Learn how you can launch a custom and compliant card program with Bridge Cards.
Bridge is not a bank. The Prepaid Debit Visa Card is issued by Lead Bank and managed by Bridge Ventures, LLC. Fees may apply. See www.bridge.xyz/legal for more details.
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Bridge does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent attorney or accountant licensed to practice in your jurisdiction for advice on your particular situation.
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