In 2025, about $141 billion in stablecoins reportedly ended up in the hands of illicit actors. Much of this activity was funneled through a few networks that favored stablecoins for their predictable value and quick transfers.
Much of that movement is tied to a small number of networks that use stablecoins for their speed and price stability. That does not mean widespread criminal use across all stablecoins. It points to concentrated channels where these tokens meet a specific need: moving value reliably outside regular banking rails.
Sanctions Linked Networks Drive The Bulk Of Flows
According To TRM Labs, sanctions-related flows made up roughly 86% of detected illicit crypto transfers last year. Around $72 billion of the stablecoin total traced back to a ruble-pegged token linked to Russian networks.
These networks are not isolated. Reports note overlaps with entities tied to China, Iran, North Korea, and Venezuela, which shows how stablecoins can act as bridges between different sanctioned systems.
The mechanics are simple: price stability matters when you need predictable settlement and low volatility risk. Stablecoins offer that.
Guarantee Marketplaces And Human Trafficking Rely On Stablecoins
Volume on certain marketplaces surged, mostly in stablecoins. Some escrow and guarantee sites — which act like middlemen for high-value transfers — saw tens of billions of dollars flow through their systems.
Reports note these venues are almost totally stablecoin-denominated, which raises red flags about their role in moving funds tied to illicit trade. Chainalysis and others have also pointed to sharp increases in flows to networks connected to human trafficking and escort services, and those operations leaned heavily on stablecoins for payments.
In these cases, payment certainty and liquidity matter more to the buyers and sellers than the chance of gains.
Different Types Of Crime Use Different Paths
Scams, ransomware, and thefts often start in Bitcoin or Ether and then shift into stablecoins later in the laundering chain. That pattern is common because attackers want an asset that holds value while they move it through fewer hands.
Market Cap
Meanwhile, the global stablecoin market has grown into a multi‑hundred‑billion‑dollar sector, with total market capitalization topping roughly $270 billion in early 2026.
According to data tracking site Stablecoin.com, the combined value of all major stablecoins consistently sits above the mid‑hundreds of billions mark, with fiat‑backed coins accounting for most of that total.
Two issuers dominate the sector. Tether’s USDT leads by a wide margin, with a market cap often reported at around $180 billion or more, and representing more than two‑thirds of the total stablecoin market.
Circle’s USD Coin (USDC) sits in second place with a market cap often above $70 billion, jointly holding over 90% of stablecoin capitalization when combined with USDT.
Smaller stablecoins like Ethena USDe, DAI, and PayPal USD make up a much smaller portion of the market but signal ongoing diversification among providers, the data tracker said.
Featured image from Unsplash, chart from TradingView
