Crypto card spending passes $1 billion milestone
Stablecoin-funded debit cards processed over $1 billion in purchases in the past year, with users buying groceries and paying for everyday services.
Tracked spending on cryptocurrency debit cards has crossed $1 billion annually, according to data cited by CoinDesk. The volume more than tripled over the past year. Two stablecoins, USDC and USDT, funded over 70% of the transactions. Users increasingly used the cards for ordinary purchases: groceries, ride-sharing, subscriptions, and other everyday expenses.
A stablecoin is a cryptocurrency designed to hold a steady value, usually pegged to the US dollar at a one-to-one ratio. USDC and USDT are the two largest stablecoins by usage. A crypto debit card lets a holder spend stablecoins directly, without converting them back to regular currency first. The card issuer handles that conversion behind the scenes when the purchase happens.
The shift toward everyday spending marks a change in how people use stablecoins. For years, they functioned mainly as a bridge between different cryptocurrencies, or as a way to hold value without the price swings of Bitcoin or Ethereum. Now ordinary users are funding debit cards and using them like any other payment method.
For a stablecoin holder, a crypto debit card removes a friction point. They don't have to sell their coins on an exchange, wait for a bank transfer, and then spend the money. They tap or swipe and the merchant gets paid in regular currency. The holder's stablecoin balance drops by the amount spent. Fees vary by card issuer but are typically lower than wire transfers or other traditional payment methods.
Several questions remain. The data tracks only cards that report their volumes, so actual spending may be higher or lower. It's unclear whether the growth is driven by new users or by existing users spending more. Regulatory scrutiny of stablecoins is increasing globally, which could affect how freely these cards operate in different countries.
First reported by CoinDesk: Read CoinDesk's full report.