The second edition of our newsletter, Where Money Moves, is live.
Twice a month, we unpack the key trends, developments, and data shaping the stablecoin industry.
Dive in ↓
@Circle, the issuer of USDC, filed an S-1 with the SEC for an IPO, although the offering has since been delayed. Once the offering proceeds, Circle will be the first major issuer to go public, underscoring the established role of stablecoins in the financial system.
USDC remains the second-largest dollar-backed stablecoin by market cap, trailing only @Tether_to’s USD₮. Despite acknowledgment of its reserves and compliance measures by some institutional players, Circle’s history is not without its issues. Notably, USDC experienced a brief depeg during the 2023 banking crisis, and a significant portion of its US treasury bill revenue is allocated to distribution partners.
Achieving widespread stablecoin adoption requires more than regulatory clarity. It demands robust integrations, reliable payment experiences, and a distribution network that minimizes hidden costs. The underlying infrastructure of the blockchains that support these stablecoins will ultimately determine their global scalability.
The @FinancialCmte advanced the STABLE Act, which is aimed at creating a comprehensive regulatory framework for how stablecoins are issued and circulated in the U.S.
Simultaneously, recent US-led tariffs and geopolitical uncertainty have driven a surge in investor demand for stablecoins and other tokenized real-world assets (RWAs).
@JPMorgan sees yield-bearing stablecoins growing market share from 6% to 50% in a higher interest rate environment. Investors are likely to demand onchain dollar instruments that combine the price stability of fiat-backed tokens with embedded returns.
In line with institutional adoption, Japan’s second-largest bank @smbc_midosuke is partnering with @avax to launch its own yen-backed stablecoin.
Other headlines:
- @Worldlibertyfi launches their stablecoin USD1 on @ethereum and @binance smart chain
- Emerging market stablecoins like MXNB and BRL1 are finding product-market fit
- Singapore introducing stablecoin-friendly banking regulations
- @Worldcoin’s World Network will be adding @visa card functionality to their self-custody cryptocurrency wallet
Stablecoin supply hit a record high of $230.1 billion, with USD₮ staying dominant at a 63.1% market share ($145.2 billion). That’s now 1.09% of US M2 money supply.
Global stablecoin usage holds steady: monthly transfer volume is roughly $3 trillion across 626.4 million transactions. Weekly volume across major stablecoins averages just under $500 billion.
Adoption is growing: over 156.6 million wallets hold stablecoins, and USD₮ leads with more than 95.2 million holders.
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