Neobanks Fuel Stablecoin Surge in Emerging Markets
The rise of neobanks in emerging markets is having an unexpected effect on the stablecoin market. Platforms like Rizon, Altitude, and Fuse are using USDC and USDT to power their services, offering customers cheap transfers and dollar-denominated accounts.
This has led to a surge in demand for these stablecoins, with Circle's USDC market cap reaching approximately $75 billion in 2025, a 73% year-on-year increase. Tether's USDT also grew, but at a slower pace, marking the second consecutive year where USDC outpaced its larger rival in percentage terms.
The neobank sector itself is struggling with profitability issues, with three out of four platforms running at a loss. However, stablecoin issuers Circle and Tether are reaping the rewards of their partnership with these emerging banks, as they offer a cost-effective and efficient way to settle payments.