Stablecoin Payments News: Latest Developments in 2026

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Stablecoins processed over $27.6 trillion in on-chain transaction volume during 2024, surpassing Visa's payment volume for the first time. That number grew by another 40%+ through 2025, driven by cross-border payments, payroll, and B2B settlement. The first months of 2026 have brought a wave of major announcements from fintech giants entering the space.

Here's every significant stablecoin payments development from late 2025 and early 2026, with analysis of what each one means for businesses accepting crypto.

Tether Invests $200 Million in Whop

Date: January 2026

Tether, the company behind USDT (the largest stablecoin with $140B+ market cap), invested $200 million in Whop, a digital commerce platform used by creators, SaaS sellers, and community operators. The deal values Whop at roughly $1.5 billion.

This is Tether's largest investment outside of its reserve assets. The strategic rationale: embed USDT payments directly into a platform that processes thousands of digital product transactions daily. Whop's user base — mostly internet-native sellers and buyers — represents the exact demographic already comfortable with crypto payments.

The integration means Whop sellers can now accept USDT natively, with settlement in USDT or automatic conversion to USD. Transaction fees are 0.5% — roughly half of what Stripe charges for card payments on the platform.

Why it matters: This is Tether moving from infrastructure (issuing USDT) to distribution (embedding it in commerce platforms). Expect similar investments in other vertical SaaS platforms throughout 2026.

Cash App Adds Stablecoin Support

Date: Late 2025

Block (formerly Square) rolled out stablecoin send and receive functionality in Cash App, starting with USDC on Ethereum and Solana. Cash App's 57 million monthly active users can now hold stablecoin balances, send USDC peer-to-peer, and pay at merchants that accept Cash App.

The rollout was quiet — no flashy launch event, just a gradual feature activation across US users. Cash App already supported Bitcoin purchases since 2018 and generated $12.4 billion in Bitcoin revenue in 2023. Adding stablecoins fills the gap between volatile crypto and traditional fiat, giving users a digital dollar that moves on crypto rails.

For merchants already using Square POS systems, stablecoin acceptance is toggled on through the existing Square dashboard. Settlement happens in USD by default, with an option to hold USDC.

Why it matters: Cash App puts stablecoin payments in front of 57 million consumers. Combined with Square's merchant ecosystem, this creates a closed-loop stablecoin payment network that doesn't require merchants to use a separate crypto payment gateway.

PayPal PYUSD Cross-Border Expansion

Date: Q4 2025 – Q1 2026

PayPal's stablecoin PYUSD, launched on Ethereum in August 2023 and expanded to Solana in May 2024, reached a circulating supply of $800 million by early 2026. PayPal has been aggressively pushing PYUSD for cross-border payments, offering zero-fee transfers between PayPal and Venmo users.

Key developments:

• Cross-border merchant settlement: Merchants in 30+ countries can now receive PYUSD for international sales with 0% currency conversion fees (compared to PayPal's standard 3%–4% cross-border fee). Settlement to local bank accounts incurs a flat 0.5% fee.
• Xoom integration: PayPal's remittance service Xoom now uses PYUSD as a backend rail for transfers to 12 countries, reducing costs and settlement time from days to minutes.
• Solana throughput: Over 60% of PYUSD transactions now happen on Solana, where transfer fees are fractions of a cent compared to $2–$10 on Ethereum mainnet.

Why it matters: PayPal has 430 million active accounts. When a company that size pushes a stablecoin for cross-border commerce, it normalizes the technology for mainstream merchants. The zero-fee conversion for PayPal-to-PayPal transfers creates a powerful incentive to adopt PYUSD over traditional PayPal payment rails.

Stripe's Stablecoin Integration

Date: October 2025 – February 2026

Stripe re-entered crypto payments in October 2024 after a six-year hiatus, starting with USDC payments on Ethereum, Solana, and Polygon. By early 2026, the integration has matured significantly:

• Pay with stablecoins: Any Stripe merchant can enable USDC and USDT as payment methods in their checkout. Buyers pay from any crypto wallet; Stripe converts to fiat and deposits to the merchant's bank account.
• Stablecoin payouts: Stripe now supports paying out to contractors and marketplaces in USDC via Stripe Connect, enabling instant cross-border payments to freelancers and sellers in 40+ countries.
• Onramp product: Stripe's fiat-to-crypto onramp (embedded in partner apps) processed $2B+ in volume through 2025, making it one of the largest on-ramps globally.

Stripe charges 1.5% for stablecoin-to-fiat conversion, which is competitive with card processing fees (typically 2.9% + $0.30) and dramatically cheaper for large transactions. For a $10,000 B2B invoice, Stripe's stablecoin fee is $150 versus $320 for card processing. Read more about the financial advantages in our B2B crypto payments guide.

Why it matters: Stripe powers payments for millions of internet businesses. Its stablecoin support doesn't just add a payment option — it legitimizes crypto payments for the mainstream developer and merchant community that already trusts Stripe.

Visa and Mastercard Stablecoin Moves

Both card networks have been building stablecoin infrastructure throughout 2025:

• Visa: Expanded its stablecoin settlement pilot to 15+ banking partners. Visa now settles merchant payouts in USDC on Solana for select partners, reducing the traditional 2–3 day settlement window to minutes. Visa also piloted tokenized deposit interoperability with HSBC and Hang Seng Bank.
• Mastercard: Launched its Multi-Token Network (MTN) for B2B cross-border payments using regulated stablecoins. Early partners include Standard Chartered and banking institutions across Asia-Pacific. Mastercard's MTN processes pilot transactions in tokenized deposits that interoperate with public stablecoins.

Regulatory Landscape: MiCA and US Stablecoin Bills

Regulation is catching up with stablecoin adoption:

• EU MiCA (Markets in Crypto-Assets): Fully effective since June 2024, MiCA requires stablecoin issuers in the EU to hold 1:1 reserves with authorized custodians and obtain an e-money license. Tether chose not to pursue MiCA compliance initially, leading exchanges like Coinbase Europe to delist USDT in early 2025. Circle (USDC) obtained its MiCA license and is positioning USDC as the compliant choice in Europe.
• US stablecoin legislation: The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) advanced through Congress in 2025, proposing federal oversight for stablecoin issuers with market caps above $10 billion. As of February 2026, the bill is in reconciliation between House and Senate versions. Its passage would create the first comprehensive US stablecoin framework.
• Asia-Pacific: Singapore's MAS finalized its stablecoin regulatory framework, with Paxos and StraitsX receiving licenses. Hong Kong issued sandbox approvals for several stablecoin projects under its HKMA framework.

Stablecoin Market Data: 2025–2026

Total stablecoin market cap exceeded $210 billion in early 2026, up from $130 billion at the start of 2025. On-chain transaction volume is on pace to exceed $35 trillion for 2025 — roughly matching the GDP of the United States.

2026 Stablecoin Payment Trends to Watch

1. Stablecoins as Payroll Rails

Companies like Deel, Remote, and Papaya Global now offer stablecoin payroll options for international contractors. A freelancer in Nigeria or the Philippines can receive USDC and convert locally, avoiding 5%–8% fees from traditional remittance channels. Expect stablecoin payroll to grow from a niche offering to a standard option at major payroll platforms by end of 2026.

2. Embedded Stablecoin Checkout

The days of redirecting customers to a separate crypto payment page are ending. Stripe, Square, and Shopify are embedding stablecoin options directly in their standard checkout flows. For merchants, adding stablecoins will be as simple as toggling a switch — no separate gateway needed for basic acceptance. For advanced needs, dedicated gateways still offer more features (see our gateway cost analysis).

3. Yield-Bearing Stablecoins in Commerce

Stablecoins that earn yield (like Mountain Protocol's USDM or Ondo's USDY) are entering merchant settlement. Instead of holding idle USD in a bank account, merchants can hold yield-bearing stablecoins and earn 4%–5% APY on unsettled funds. This creates a financial incentive beyond transaction fee savings.

4. Regional Stablecoins

Euro-denominated stablecoins (like Circle's EURC) and other regional stablecoins are growing. For EU merchants selling to EU customers, accepting EURC eliminates USD conversion entirely. Expect more currency-specific stablecoins to launch under MiCA and similar frameworks.

5. Layer 2 Dominance

Base (Coinbase's L2), Arbitrum, and Optimism are capturing growing shares of stablecoin transaction volume. Fees on these networks are under $0.01 per transaction, making micropayments viable for the first time. A coffee shop accepting USDC on Base pays less in transaction fees than it would for a credit card swipe.

What This Means for Merchants

The stablecoin payments landscape is consolidating around a few clear trends:

1. Barrier to entry is near zero. If you already use Stripe, Square, or PayPal, adding stablecoin acceptance requires minimal technical work.
2. Cross-border savings are real. Merchants selling internationally can save 2%–5% on transaction fees by accepting stablecoins instead of credit cards or PayPal.
3. Regulatory clarity is improving. MiCA in Europe and pending US legislation mean stablecoin payments are moving from a gray area to a regulated, bankable activity.
4. Settlement speed matters. Receiving funds in minutes instead of 2–5 business days improves cash flow — especially for small businesses.

If you're ready to start accepting stablecoin payments, read our step-by-step guide to accepting crypto on your website. For businesses operating without KYC requirements, check our no-KYC gateway comparison.

This article is updated regularly as new stablecoin payment developments emerge. Last update: February 25, 2026.