Stablecoins and crypto debit cards are gaining meaningful traction in Europe’s evolving financial ecosystem, with recent data showing significant growth in both internet-based settlements and everyday spending.
While stablecoins now surpass traditional card networks like Visa and Mastercard in onchain volume, crypto cards are matching — and in some areas outpacing — banks when it comes to micro-payments and online purchases.
Stablecoins Leapfrog Card Giants to Become the Internet’s Default Settlement Layer
The race to own the internet’s checkout button is over—for now. Data gathered by blockchain-infrastructure provider Alchemy shows that dollar-pegged cryptocurrencies have already pushed past Visa and Mastercard in on-chain transaction volume by roughly 7%, cementing stablecoins as the fastest-growing payment rail on the planet.
Stablecoins have seen “explosive” adoption and are becoming the default settlement layer for the internet, Alchemy’s head of engineering Noam Hurwitz says. Behind the numbers is a simple value proposition: near-instant, borderless transfers that cost a fraction of a cent and clear 24/7—features legacy card networks still struggle to match. The result, Hurwitz added, is a decisive shift in how money moves online.
PayPal, Stripe and Visa have all embedded stablecoin rails to trim costs and speed up settlement, effectively hiding the blockchain complexity behind familiar user interfaces. By leaning on Alchemy’s APIs, these firms can decouple the user experience from the underlying technology while gaining real-time finality, Hurwitz explained.
A Trillion-Dollar Liquidity Pool in Treasurys
One knock-on effect of stablecoin growth is a massive new buyer of US debt. Market leader Tether (USDT) generated an estimated $13 billion in profit last year and now holds roughly $113 billion in US Treasurys—more than the government of Germany. Those reserve-backed holdings anchor the broader tokenized-finance stack, Hurwitz noted, turning tokenized money into the bedrock of an emerging on-chain economy.
Momentum accelerated on June 17 when the US Senate passed the bipartisan Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). The bill creates a federal licensing regime for issuers and removes much of the legal gray area that has kept banks and payment giants on the sidelines. Industry lawyers say the legislation could be signed into law before year-end, providing a clear runway for further institutional adoption.
Traditional finance isn’t standing still. J.P. Morgan’s blockchain unit Kinexys is piloting a permissioned USD deposit token—JPMD—on Coinbase’s Layer-2 network Base. The project promises interest-bearing balances, real-time liquidity and 24-hour settlement for corporate treasuries, positioning bank-issued tokens as a “superior alternative to stablecoins” for some clients.
Fragmented Chains and UX Hurdles Remain
Despite eye-popping throughput, the stablecoin landscape is still fragmented across multiple blockchains. Enterprises must vet each network’s reliability, liquidity depth and counter-party risk—no trivial task for treasury teams used to a single clearing house. Hurwitz argues that the next wave of adoption will come from Layer-2 networks purpose-built for individual platforms, stitched together by seamless cross-chain bridges.
However, not everyone is sold on the idea that privately issued tokens can serve as “money.” In its 2025 Annual Economic Report, the Bank for International Settlements said stablecoins fail crucial tests of singleness, elasticity and integrity, likening them to 19th-century banknotes that sometimes traded at discounts. The BIS instead backs central-bank digital currencies and tokenized deposits as safer foundations for digital finance.
Layer-2s and Interoperability
Alchemy expects most financial-services firms to launch their own Layer-2 chains over the next five years, each monetizing niche ecosystems while relying on stablecoins for final settlement. If cross-chain interoperability matures as quickly as liquidity has, stablecoins could underpin a more connected, always-on financial web—one where swapping tokenized dollars for tokenized securities or real-world assets happens in a single click, anywhere on Earth.
Crypto Cards Challenge Banks for the Checkout Crown in Europe
In related news, data from CEX.IO and other payment providers show digital-asset cards closing the gap with — and in key areas beating — traditional banks at Europe’s point of sale.
Europe’s long-running love affair with cash is fading fastest at the lower end of the purchase spectrum, and crypto cards are seizing the moment. According to a 2025 spend-pattern survey released by London-based exchange CEX.IO, 45 percent of all crypto-linked card transactions in the region are for less than €10. That tiny-ticket share rivals the cozy hold cash once enjoyed at corner bakeries, newsstands and transit kiosks, and now outpaces the slice claimed by debit- and credit-card issuers backed by high-street banks.
The report arrives as the number of newly issued CEX.IO cards jumped 15 percent year-to-date, hinting that Europeans are warming to the idea of spending stablecoins and mainstream crypto assets the same way they swipe or tap a bank card.
Digital natives aren’t just tapping in cafés. They’re checking out online at a pace traditional cards have yet to match. While European Central Bank data show that 21 percent of all euro-area card payments are remote, CEX.IO’s customers conduct 40 percent of their transactions over the internet. The elevated e-commerce usage mirrors findings from rivals Oobit and Crypto.com, both of which have logged outsized crypto-card traffic at online retailers, airline sites and app stores.
Where the Money Goes: Groceries, Dining and Daily Life
Far from the crypto-luxury stereotype, most purchases are decidedly ordinary.
The average crypto-card transaction clocks in at €23.70, meaning users are reaching for digital assets to buy sandwiches and detergent more often than big-ticket electronics. By comparison, Mastercard pegs the average European bank-card purchase at €33.60.
Behind the scenes, stablecoins fund roughly 73 percent of purchases, confirming their rise as a low-volatility medium for everyday exchange. Yet holders still dip into more volatile assets: Bitcoin, Ether, Litecoin and Solana collectively account for a quarter of grocery, dining and transport payments in the dataset. The asset mix underscores consumers’ willingness to spend, not just hoard, their crypto.
Cryptocurrencies used for purchases (Source: CEX.IO)
A Cashless Future, One Tap at a Time
“What we’re seeing in Europe is that crypto-card users aren’t just experimenting with new tech — they’re forming the habits that will define a truly cashless future,” said Alexandr Kerya, vice-president of product management at CEX.IO. He noted that average monthly payment volume across the company’s cardholders rose 24 percent in May alone, even as price volatility remained muted.
Crypto card spending distribution (Source: CEX.IO)
Those habits are reinforced by a wave of new offerings. Kraken and Mastercard launched a co-branded debit card last year; meme-coin ecosystem Floki followed suit with a 13-asset card this spring. Fintechs have responded by deepening rewards programs and upping transaction limits, hoping to keep pace with a customer base that clearly values immediate settlement and blockchain transparency.
Not everyone is cheering. UK banking giant Barclays announced it will block crypto purchases on Barclaycard credit lines starting next month, citing fears of unsustainable debt loads and the absence of investor protections. The lender warned customers that digital-asset transactions fall outside the safety net of the Financial Ombudsman Service and the Financial Services Compensation Scheme.
The move signals a widening philosophical divide: fintechs lean on real-time blockchain settlement to reduce fraud and chargebacks, whereas legacy banks remain wary of an asset class still navigating regulatory scrutiny and sharp market swings.
The Road to Parity — and Beyond
Three trends suggest crypto cards could soon match, or surpass, traditional bank cards across more spending categories:
1. Merchant Acceptance
Large payment processors now route crypto authorization through the same EMV rails they use for fiat transactions, minimizing friction for shops and restaurants.
2. Regulatory Clarity
The European Union’s Markets in Crypto-Assets (MiCA) framework rolls out this year, creating a passportable license that card issuers can leverage continent-wide.
3. Stablecoin Maturity
With tokenized euros and CBDC pilots advancing, volatility concerns around crypto payments may recede, opening the door for payroll deposits and utility billing.
If those forces converge, crypto cards might not just rival bank plastics for micro-spending; they could become the default in a post-cash Europe—one tap, scan or click at a time.
