Cathie Wood Admits Stablecoins Outpace Bitcoin in Global Payments Race

Cathie Wood Revises Bitcoin’s Role as Stablecoins Dominate Payments

Cathie Wood, CEO of ARK Invest, long argued that Bitcoin would become a global monetary layer—programmable, borderless, inflation-resistant, and eventually dominant in payments. However, in a recent interview with The Rollup, Wood conceded that stablecoins have already claimed that role, particularly in emerging markets.

Stablecoins Overtake Bitcoin in Transactional Volume

Wood’s latest remarks highlight a shift in crypto’s payment landscape. Data from McKinsey and Artemis estimates that stablecoin payments now total roughly $390 billion annually, accounting for about 0.02% of global payments volume. This marks a significant absorption of Bitcoin’s once-proposed transactional utility.

The stablecoin market cap has surged to over $320.6 billion as of April 27, 2025—a 56% increase since early 2025. Tether’s USDT dominates with a 59.16% market share, per DefiLlama.

Emerging Markets Favor Stablecoins Over Bitcoin

TRM Labs’ Q1 2026 adoption report reveals stablecoins’ dominance in regions with capital constraints:

• Venezuela: USDT accounts for 90.2% of active Binance P2P Venezuelan bolívar listings, while Bitcoin holds just 1.9%.
• Brazil: Roughly 66% of crypto transaction volume is conducted via USDT, compared to Bitcoin’s 11%. Officials note stablecoins primarily function as payment instruments.
• Iran: USDT operates as a de facto savings and payments rail amid currency restrictions.

In March 2026 alone, US dollar-pegged stablecoins processed $274 billion in retail transactions through virtual asset service providers.

Bitcoin Shifts Focus to Scarcity and Institutional Adoption

With stablecoins now leading in payments, Bitcoin has pivoted toward its core strengths: scarcity, institutional allocation, and macro reserve positioning. Recent data reflects this transition:

• CoinShares: Crypto investment products saw $1.2 billion in inflows for the fourth consecutive week, with Bitcoin capturing $933 million of the total. Ethereum and Solana followed with $192 million and $31.8 million, respectively. Total assets under management reached $155 billion, the highest since February 1, 2025.
• Strategy: An SEC filing on April 27, 2025, revealed the purchase of 3,273 BTC between April 20–26, bringing its total holdings to 818,334 BTC at an aggregate cost of $61.8 billion.
• CME: Crypto average daily volume rose from 191,000 to 310,000 contracts year-over-year in Q1 2025, while average daily open interest increased by 25% to 313,900 contracts.

ETF Era Softens Bitcoin’s Boom-Bust Cycles

Wood also noted that institutional adoption via ETFs has introduced a more stable investment dynamic. ETF flows and improved liquidity have reduced the severity of Bitcoin’s boom-bust cycles, creating a more mature market environment.

"Stablecoins have taken over part of the role that ARK once expected Bitcoin to fill in emerging-market payments." — Cathie Wood, ARK Invest CEO

Key Takeaways

• Stablecoins now dominate crypto payments, particularly in emerging markets like Venezuela and Brazil.
• Bitcoin’s transactional utility has been largely superseded by stablecoins, but it remains a key asset for institutional adoption and scarcity.
• ETF-driven inflows and institutional interest are stabilizing Bitcoin’s market cycles.