Stablecoin ‘Bot’ Transactions Cast Doubt on Usage for Payments

More than 90% of stablecoin transaction volumes aren’t coming from genuine users, according to a new metric co-developed by Visa Inc., suggesting such crypto tokens may be far away from becoming a commonly used means of payment.

The dashboard from Visa and Allium Labs is designed to strip out transactions initiated by bots and large-scale traders to isolate those made by real people. Out of about $2.2 trillion in total transactions in April, just $149 billion originated from “organic payments activity,” according to Visa.

Visa’s finding challenges stablecoin proponents’ argument that the tokens, pegged to an asset like the ...