The stablecoin and payments category has demonstrated a remarkable rebound in venture capital activity, with the third quarter and fourth quarter of 2024 recording 43 and 42 deals, respectively — figures that represent new all-time highs for quarterly deal counts in this sector.
This surge is particularly impressive when viewed against the 2021 cycle peak, where the entire year saw 87 total deals across all four quarters. In the first quarter of 2025, we observed that 7.5% of all venture capital deals were invested in a payment provider or stablecoin issuer.
The stablecoin and payments category, which encompasses companies working on stablecoin issuance and payment processing infrastructure that accepts stablecoins, now stands as one of the few crypto sectors to surpass its 2021 performance metrics.
This is a chart from The Block’s Venture Capital Deals Dashboard, exclusive to The Block’s Research Clients
The meteoric rise in stablecoin-enabled companies has captured significant mainstream attention, drawing institutional interest beyond traditional crypto-focused investors. Circle’s very successful IPO has served as a catalyst, demonstrating to traditional investors that stablecoin infrastructure can generate substantial returns and sustainable business models. This institutional validation has given rise to a flood of venture capital deployment into the broader stablecoin ecosystem over the last few months.
Regulatory developments have provided additional momentum for investor confidence in the sector. Further developments around the GENIUS Act in the United States have pushed stablecoins into the regulatory spotlight, offering clearer frameworks that institutional investors view favorably. This regulatory clarity has likely reduced perceived investment risk, enabling more traditional venture funds to allocate capital to stablecoin infrastructure projects.
This is an excerpt from The Block’s Data & Insights newsletter. Dig into the numbers making up the industry’s most thought-provoking trends.
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