Stablecoin's Hidden Use Cases: Trading and Liquidity Provision Dominate Flow

The narrative around Stablecoin has shifted from the crypto circle to the payment industry over the past two years. With the rise of Pay with USDC, Stablecoin Checkout, Stablecoin Card, and other similar services, it seems like everyone is using Stablecoins for everyday transactions. However, Eric Barbier, founder of Triple-A, recently revealed some interesting data that challenges this assumption.

From July 2025 to July 2026, Triple-A's total payment volume (TPV) doubled, with the trading platforms, exchanges, and market makers segment growing by 150%. This growth is significant, but it's not just about consumers using USDC to buy coffee. In reality, a large portion of Stablecoin flow is actually for trading, liquidity provision, arbitrage, and treasury rebalancing.

Codex, another example cited in the article, has monthly volumes reaching $1.2 billion. Its newly launched USDT ↔ USDC 1:1 Conversion product, Codex Par, handles hundreds of millions per month in volume. This highlights the importance of liquidity provision and settlement in the crypto market.

The author argues that while Stablecoin is often associated with consumer payments, its primary use cases are actually for trading and liquidity provision. In fact, exchanges and other platforms rely on Stablecoins as a settlement asset and liquidity rail due to their 24/7 availability and ability to settle quickly.