Alex Witt, General Partner at Verda Ventures, argues that venture capital concentration in the U.S. and Europe misses the largest stablecoin opportunity in emerging markets. Stablecoin transaction volume crossed $28 trillion globally in 2025, surpassing Visa and Mastercard combined, yet most founders and capital remain concentrated in regions where stablecoins serve institutional clients rather than mass-market demand. The geographic mismatch exists because real demand concentrates in countries facing currency instability: Nigeria has over 26 million crypto users with 59% holding USDT, Argentina's stablecoin purchases represent over half of all exchange transactions, and Brazil registered $318.8 billion in crypto inflows through mid-2025 with over 90% flowing through stablecoins. Witt contends this concentration pattern causes venture funds to overlook founders building payment infrastructure in Lagos, São Paulo, and Manila, where stablecoins function as financial lifelines rather than speculative instruments.
Stablescape Data Shows 1,300 U.S.-Based Companies Despite Emerging Market Volume Dominance
Stablescape, which tracks over 3,000 stablecoin and crypto-fintech companies globally, finds that 1,300 are based in the United States. Emerging markets across Latin America, sub-Saharan Africa, Southeast Asia, and the Middle East represent just 32% of tracked companies, despite generating the majority of real-world stablecoin volume. In Argentina, stablecoin purchases make up over half of all exchange transactions, driven by triple-digit inflation and currency controls. Sub-Saharan Africa grew 52% year-over-year, receiving over $205 billion in on-chain value.
Argentina and Brazil Drive Latin American Stablecoin Transaction Growth
Brazil registered $318.8 billion in crypto inflows through mid-2025, with over 90% flowing through stablecoins. According to IMF data, stablecoin flows represent 7.7% of regional GDP across Latin America. In Argentina, currency controls make dollar access a bureaucratic obstacle course, pushing users toward stablecoin purchases that now constitute over half of all exchange transactions. The Western crypto narrative frames stablecoins as infrastructure for programmable settlement rails and DeFi yield, while in Lagos, Buenos Aires, and Istanbul, stablecoins function as the first reliable way to hold dollar value outside banks that fail or currencies that collapse.
B2B Stablecoin Payments in Latin America Grew from $100 Million to $6 Billion Monthly
B2B stablecoin payments across Latin America grew from under $100 million per month in early 2023 to over $6 billion per month by mid-2025, a 60x increase in 30 months driven by cross-border commerce. Yellow Card, operating across 34 countries, exited its consumer business entirely to focus on B2B. Bitso built its position in the Mexico-U.S. corridor through business payment flows rather than retail wallets. Consumer stablecoin products carry compliance costs that scale with user count, fragile local banking relationships, and unit economics that rarely survive small retail transfers.
30 Venture Capital Firms Captured 75% of U.S. Fund Capital in 2024
In 2024, 30 VC firms captured 75% of all capital raised by U.S. funds. Witt argues that a Sand Hill Road fund's pattern recognition about San Francisco founders provides almost no signal about which Lagos, Buenos Aires, or Manila founder can execute. OPay is seeking a $4 billion valuation ahead of a potential IPO built on African payments infrastructure. Modern Treasury acquired Beam, a stablecoin cross-border liquidity startup, for $40 million. The GENIUS Act and MiCA provide regulatory clarity, and institutional capital follows clarity wherever it arrives, but U.S. regulatory clarity focuses on making stablecoins safe for compliance departments rather than addressing volume in Nigeria and Argentina that outgrows the U.S. market on nearly every metric.
Philippines Remittances and African Regulatory Frameworks Create Stablecoin Corridors
The Philippines received $39.6 billion in personal remittances in 2025, with transfer costs averaging 5 to 7% against a stablecoin transfer cost measured in fractions of a percent. Nigeria's 2025 Investment and Securities Act brought virtual assets under formal oversight, with licensing regimes across South Africa, Botswana, Mauritius, and Namibia, and regulatory sandboxes now live across East and West Africa. The on/off-ramp layer, where 57% of companies are locally founded in emerging markets, along with regional remittance networks and local-currency issuers across MENA, Latin America, and Southeast Asia, remains underfunded relative to the demand beneath it. Companies like Kulipa build stablecoin payment infrastructure for African markets, and Mural Pay focuses on cross-border B2B payments across Latin America.
El Dorado Reached 600,000 Users and $2.7 Million ARR in 2025
El Dorado, a Latin American stablecoin super-app, crossed 600,000 users and 3 million transactions in 2025, reaching $2.7 million ARR through 12x annual growth, and became Venezuela's most downloaded crypto app. Multicoin Capital and Coinbase Ventures backed it after the market had already validated the model. Witt argues that volume first, local validation second, global capital third sequencing will repeat across every major emerging market corridor over the next five years, and that funds building relationships in Lagos, São Paulo, and Manila today will generate the best returns in stablecoins over the next decade.
FAQ
What stablecoin transaction volume did the market reach in 2025?
Stablecoin transaction volume crossed $28 trillion globally in 2025, surpassing Visa and Mastercard combined.
How many crypto users does Nigeria have and what percentage hold USDT?
Nigeria has over 26 million crypto users, more than one in eight adults, and 59% of them hold USDT.
How much did B2B stablecoin payments grow in Latin America between early 2023 and mid-2025?
B2B stablecoin payments across Latin America grew from under $100 million per month in early 2023 to over $6 billion per month by mid-2025, a 60x increase in 30 months.
