TRM Labs Shows Stablecoin Growth Is Strong as Illicit Flows Stay Narrowly Focused

TRM Labs reports stablecoin volumes topping trillions in 2025, with illicit activity confined to a small group of high-risk networks.

Stablecoin use in global crypto markets expanded further in 2025, and new data from TRM

Labs show that most activity remains concentrated in legal payments and settlement systems.

The research also shows that illicit flows, while present, are clustered in a small number of entities and networks rather than spread throughout the broader ecosystem.

Stablecoin Activity Continues to Grow

Stablecoins reached multiple months with more than one trillion USD in transaction volume during 2025.

This pattern reflects their growing role as payment and settlement tools, and it shows that they are now used far beyond speculative trading.

TRM reports that stablecoins accounted for around 60% of all crypto transaction volume during the year.

The research notes that tens of trillions of dollars moved through stablecoins over twelve months.

Analysts say this sustained volume shows growing demand from both retail and institutional users.

Transfers also expanded across regions as more platforms supported stablecoin payments for routine transactions.

TRM states that this growth came as more firms adopted stablecoins for operational needs.

Market observers say this usage pattern is different from earlier cycles, when most stablecoin transfers occurred during trading activity.

The shift toward payments has continued as firms seek faster settlement.

Illicit Flows Are Concentrated in a Small Group

TRM found that illicit entities received around 141 billion USD in stablecoin-linked transfers during 2025.

Much of this volume came from sanctions evasion and large laundering networks.

These activities accounted for most illicit stablecoin flows and often relied on coordinated movement between known high-risk wallets.

The report shows that sanctions-related activity represented 86% of illicit crypto flows in 2025.

TRM states that this activity concentrated around sanctioned exchanges, payment services, and networked platforms that depend heavily on stablecoins.

These networks used stablecoins for speed and global reach. Stablecoin use varied across crime categories.

Illicit goods and services networks used stablecoins widely, while scams, fraud, and ransomware relied on them less often.

TRM notes that professional intermediaries, including front-company exchanges and guarantee services, handled most of the stablecoin-linked illicit transfers.

Some of these networks processed nearly all activity in stablecoins.

Related Reading: TRM Labs Reaches $1B Valuation After $70M Series C Funding Round

Risk Remains Narrow and Targeted Responses Are Possible

TRM concludes that illicit exposure is not evenly spread across the stablecoin market.

Instead, most risk clusters in a small number of entities and organized networks. This pattern offers opportunities for targeted disruption rather than broad restrictions.

The report states that intelligence-led actions could reduce illicit activity without limiting lawful stablecoin use.

Many high-risk networks operate through predictable structures, and their activity is visible on public blockchains. TRM says this visibility can support more focused interventions.

The research also notes that most stablecoin users remain outside high-risk channels.

Stablecoins continue to support routine payments and settlement processes, and the broader ecosystem shows steady growth.

TRM states that continued monitoring will help keep risk concentrated and manageable.

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