Are Stablecoins Primarily Used for Money Laundering? Blockchain Analysis Firm Reports 99% of Stablecoin Transactions Will Be for Legitimate Purposes in 2024.

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Stablecoin Usage Becomes Increasingly Compliant

TRM is not the only institution observing a trend towards the legitimization of stablecoin applications. Another research firm, Artimas, recently found that B2B stablecoin transfers between businesses have surpassed P2P payments between individuals, becoming the largest and fastest-growing application scenario in terms of transaction volume. TRM emphasized in its report:

“A significant feature of stablecoins is their traceability: as they operate on public blockchains, their transparency often exceeds that of cash when combined with on-chain analysis tools. Additionally, stablecoin issuers can freeze or destroy illicit proceeds, enhancing their ability to manage funds.”

GENIUS Act Becomes a Turning Point for Corporate Adoption

On the same day the report was released, the U.S. GENIUS Act was set to enter the Senate voting process. This act is considered one of the most comprehensive regulatory proposals for stablecoins in U.S. history, expected to gain bipartisan support and pass smoothly. The act includes: a stablecoin issuance licensing system, statutory reserve requirements, mandatory audits and financial disclosures, consumer protection mechanisms, and anti-money laundering (AML) standards within its regulatory framework.

TRM stated:

“The GENIUS Act marks a clear shift in U.S. digital asset policy, moving from fragmented enforcement and ambiguous guidance to a new phase of framework-based regulation led by legislation.”

These provisions are believed to further curb illegal uses and provide a regulatory foundation for large banks and enterprises to issue stablecoins. According to a previous report by Zombit, due to the gradual clarification of stablecoin regulations, companies such as Apple, Google, Airbnb, and social platform X have begun to show significant interest in stablecoin technology.

Still the Preferred Asset for Illegal Transactions, but Overall Proportion Decreases

However, it is noteworthy that TRM also pointed out in its Q1 2025 Cryptocurrency Crime Report that despite a significant increase in overall legitimate usage, stablecoins still account for 60% of all crypto crime transaction volumes. The report stated:

“Even though the black market has some interest in privacy coins (such as Monero), stablecoins remain the primary tool for financing terrorism and other illicit activities.”

Nonetheless, the overall volume of illegal transactions continues to decline. TRM noted that the total amount of illegal crypto transactions in 2024 was $45 billion, a 24% year-on-year decrease, representing only 0.4% of the total crypto transaction volume. This decline is largely attributed to the proactive efforts of law enforcement agencies and crypto operators in anti-money laundering and risk control.