In 2024, stablecoin transaction volume reached $27.6 trillion globally, surpassing Visa’s $13 trillion payment volume by 7.7%, outpacing Visa and Mastercard combined. For the UAE and KSA, driving MENA’s crypto surge with 12% annual transaction growth, this milestone underscores stablecoin’s dominance in digital finance. Crypto users, familiar with trading but looking for cash-out options, can capitalize on this trend in regulated markets, leveraging stablecoins like USDT, USDC, and the UAE’s AED pegged AE Coin for remittances and decentralized finance (DeFi).
Stablecoin Redefines Transactions
Stablecoins processed $15.6-$27.6 trillion in 2024, fueled by low-cost, instant transfers on high-speed blockchains like Solana and Ethereum. In the UAE, stablecoins account for 51% of crypto transactions, with $9.8 billion in exchange inflows, a 55% rise from 2023. KSA’s retail adoption, aligned with Vision 2030’s diversification goals, sees stablecoins powering remittances, with 93% of UAE stablecoin transfers being retail-sized (under $1 million). Globally, 110 million monthly stablecoin transactions highlight their utility, equating to 0.41% of Visa’s volume. The UAE’s AE Coin, backed by dirham reserves, enhances local adoption, offering a compliant alternative for cross-border payments, per the Central Bank’s Payment Token Services Regulation.
Opportunities & Challenges
The UAE’s regulatory clarity, led by VARA’s licensing framework, and KSA’s tech-savvy youth (65% under 30) drive stablecoin adoption, supporting financial hubs and remittances ($38.5 billion outbound in KSA, 2024). Stablecoins offer efficiency, with fees as low as 0.1% versus Visa’s 1-3%, ideal for UAE’s expat community (88.5% of population). The UAE’s Financial Infrastructure Transformation programme positions AE Coin as a bridge to traditional finance, potentially paving the way for a Central Bank Digital Currency (CBDC). However, challenges persist: bot-driven transactions inflate volumes (70% globally, 98% on Solana), skewing organic activity. KSA’s regulatory uncertainty and liquidity constraints on smaller platforms add hurdles. Experienced traders should prioritize platforms with regional licenses, high liquidity, and transparent fees, ensuring compliance with the UAE’s stringent reserve audits and KSA’s evolving policies.
The Future
Stablecoin’s $200 billion market cap, representing 1% of the US dollar supply, signals its growing role in global finance. In the UAE, there are expected to be 3.78 million crypto users by 2025, and KSA’s retail enthusiasm positions them as crypto pioneers. Experienced traders often use or maximise returns using stablecoin off-ramps like bank withdrawals, P2P trading, or OTC desks, especially with AE Coin’s regulatory backing. With stablecoins powering remittances and DeFi, the UAE and KSA are shaping a compliant, innovative financial landscape, offering traders opportunities to thrive.