RedotPay, a Hong Kong-based stablecoin payments company, said on Tuesday it expects global stablecoin card spending to expand to $50 billion a year by 2028 - about four times current levels.
The projection follows a milestone in July when stablecoin card spending exceeded $1 billion in a single month, a record based on data from crypto payment card analytics firm Paymentscan. RedotPay framed the prediction as reflecting accelerating adoption of stablecoins for multiple commercial uses.
Stablecoins are cryptocurrencies designed to hold a steady value by being pegged to specific assets, most commonly fiat currencies such as the U.S. dollar. RedotPay noted that their use has grown in recent years across a range of applications, including cross-border payments, corporate treasury operations, crypto settlement and as a store of value in economies experiencing currency volatility.
Jonathan Chan, co-founder and head of partnerships at RedotPay, pointed to geographic variation in adoption, saying: "Latin America has the highest adoption and greatest potential for growth at the moment, followed by Africa." He added that rapid uptake does not always align with the markets that have the highest overall crypto penetration, arguing instead that growth stems from multiple enabling conditions.
"The fastest markets aren’t necessarily those with the highest crypto penetration. The growth is driven by the confluence of several factors: real payment pain, easy stablecoin access, strong fiat off-ramps, and regulatory clarity."
RedotPay also provided company-level metrics to contextualize its outlook. The firm said it serves more than 8 million users worldwide and that its total annualised payment volume - a figure that includes both top-ups and card spends - currently stands at over $14 billion.
The company cited Paymentscan data to support its observation that stablecoin card spend reached a new high in July. RedotPay presented the forecast and accompanying figures as evidence of an expanding role for stablecoins within payments infrastructure and corporate cash management, driven by both consumer demand and improvements in access and conversion pathways between crypto and fiat currencies.
Key points and implications for markets and sectors are summarized below, followed by risks and uncertainties noted in the company commentary.
Key points:
- RedotPay forecasts global stablecoin card spending will reach $50 billion annually by 2028, a fourfold increase from current levels.
- Stablecoin card spending surpassed $1 billion in July, according to Paymentscan analytics cited by RedotPay.
- Adoption is strongest in Latin America, followed by Africa, with uses spanning cross-border payments, treasury functions, crypto settlement and stores of value in volatile economies.
Risks and uncertainties:
- Regulatory clarity is cited as a growth driver; conversely, regulatory uncertainty could constrain expansion in payments and financial services sectors.
- Growth depends on continued availability of easy stablecoin access and robust fiat off-ramps; weaknesses in these infrastructure elements could limit uptake in payments and treasury operations.