USDStablecoin Weekly Roundup: Tether Reboots in US, Circle in Ripple’s Sights
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Stablecoins Market Cap Approaches $240B with $5B Weekly Surge Amid Growing Institutional Adoption
The stablecoins market is nearing an all-time high with a market capitalization of almost $240 billion, boosted by an impressive $5 billion increase in supply within a week, marking a 2.18% rise. Tether (USDT) holds a significant market share of 61.92%, followed by USD Coin (USDC) and others. Citigroup predicts the stablecoin market could soar to $2 trillion by 2030, with a base-case estimate of $1.6 trillion, although lacking regulations may cap it at $500 billion. The year-on-year growth of active stablecoin wallets surged by 53%, totaling 30 million, while total supply jumped from $138 billion to $225 billion—a 63% increase. Institutional adoption, integration into DeFi platforms, and recognition from authorities like Federal Reserve Governor Christopher Waller emphasize the role of stablecoins in preserving the U.S. dollar's global dominance and driving the digital economy forward.
Tether Set to Re-enter U.S. Market with New Stablecoin Amid Surge in Treasury Holdings
Tether is re-entering the U.S. market with a new dollar-pegged stablecoin, marking a strategic shift towards regulation and transparency, as confirmed by CEO Paolo Ardoino. This move aims to reshape Tether’s public image after past criticisms regarding opacity and questionable transactions. Tether has collaborated closely with U.S. lawmakers on the GENIUS Act, which seeks clearer regulatory frameworks for stablecoins and empowers law enforcement. As of March 2025, Tether’s U.S. Treasury holdings surged to nearly $120 billion, including approximately $99 billion in direct government debt, representing 10.9% of Japan's Treasury holdings. With $7 billion in excess equity, Tether has pledged over $2 billion towards strategic investments in renewable energy, AI, and data infrastructure. Despite regulatory challenges, Tether's flagship stablecoin, USDT, remains the market leader, boasting a circulating supply of over $149 billion.
Ripple Pursues Circle Acquisition Amid USDC Valuation Surge and ICO Plans
Ripple is actively pursuing the acquisition of Circle, the USDC stablecoin issuer, amid escalating bids estimated between $5 billion and $20 billion. Initial offers of $4 to $5 billion were deemed too low by Circle, leading to speculation about a higher subsequent bid. Circle's upcoming IPO, with an expected valuation upwards of $9 billion, has heightened Ripple's urgency. Circle’s market capitalization for USDC surged 44% from $43 billion to $62 billion in 2025, contrasting Tether's modest 7.25% growth. This growth is attributed to Circle's regulatory compliance efforts and the launch of a new cross-border payment product, positioning it as a competitor to Ripple. With Coinbase holding a minority stake in Circle, potential friction could arise if it opposes Ripple’s acquisition, possibly triggering a bidding war. Meanwhile, Circle has achieved in-principle approval from Abu Dhabi's Financial Services Regulatory Authority, allowing it to operate as a fully regulated money services provider.
Trump-Affiliated USD1 Stablecoin Surpasses $2.1B Amid Major Corporate Investments
Trump-linked cryptocurrency projects are experiencing significant growth, notably with the USD1 stablecoin by World Liberty Financial (WLFI), which has surpassed $2.1 billion since launching in March 2025. Backed by U.S. Treasuries and cash equivalents, USD1 is now operational on BNB Smart Chain, Ethereum, and TRON, contributing to a 30% increase in stablecoin supply on Binance. A pivotal $2 billion investment from Abu Dhabi's sovereign wealth fund, MGX, exclusively used USD1 for a transaction with Binance, signaling increasing confidence in such assets. Additionally, Justin Sun, founder of TRON, has invested $30 million into WLFI and has been appointed an advisor. Concerns over Donald Trump's potential crypto conflicts of interest are rising, with reports suggesting that 37% of his wealth is linked to crypto. Meanwhile, Trump announced over $8 trillion in corporate investments to boost American industries, coinciding with his 100th day back in office, emphasizing domestic revival and manufacturing growth.
SEC Closes Inquiry into PayPal's PYUSD Stablecoin, Clearing Regulatory Path
The U.S. Securities and Exchange Commission (SEC) has concluded its inquiry into PayPal's stablecoin, PYUSD, without taking enforcement action, as detailed in PayPal's Q1 2025 financial report. This inquiry began with a subpoena in November 2023, which raised questions about whether PYUSD might be an unregistered security. The SEC decision removes legal uncertainties for both PayPal and issuer Paxos, and may support the GENIUS Act, a bipartisan Senate bill proposing a regulatory framework for payment stablecoins. PYUSD, launched in August 2023, is a dollar-backed stablecoin fully supported by cash and short-term U.S. Treasury bills, with a circulating supply of approximately $879 million. PayPal plans to integrate PYUSD into its services for over 20 million small businesses by 2025, aiming to enhance payment solutions while navigating ongoing regulatory scrutiny from other agencies.
Mastercard Partners with Circle, Paxos, and OKX to Enhance Global Stablecoin Payments
Mastercard is expanding its support for stablecoin payments through new partnerships with prominent firms, including crypto exchange OKX, payments processor Nuvei, and stablecoin issuers Circle and Paxos. This initiative aims to facilitate seamless transactions for consumers and merchants using digital assets, with Mastercard's Chief Product Officer, Jorn Lambert, emphasizing the potential of stablecoins to streamline payments. The partnerships will also introduce the "OKX Card," a crypto-enabled bank card, enhancing accessibility for users. Stablecoins, which are pegged to stable assets like the US dollar, are gaining traction, with ARK Invest reporting a substantial increase in their annualized transaction value, reaching $15.6 trillion in 2024. This represents approximately 119% and 200% of the transaction values of Visa and Mastercard, respectively, highlighting the growing importance and adoption of stablecoins in the financial ecosystem.
Visa and Bridge Launch Stablecoin-Backed Visa Cards in Latin America
Visa has partnered with Bridge to introduce stablecoin-backed Visa cards, enabling developers to create a product that facilitates stablecoin purchases at any merchant accepting Visa. This initiative will launch in several Latin American countries, including Argentina, Colombia, Ecuador, Mexico, Peru, and Chile, allowing merchants to receive payments in local currencies. Bridge will manage the infrastructure for converting stablecoin balances to fiat for transactions. Visa's chief product officer emphasized the aim to integrate stablecoins into its network seamlessly, while Bridge's CEO highlighted this development as a significant opportunity for developers to offer convenient crypto payment solutions.
Mesh Launches Apple Pay Support for Crypto Payments, Settling in Stablecoins
Mesh is set to introduce Apple Pay support for crypto transactions, enabling shoppers to use digital assets while merchants settle in stablecoins at checkout. This feature, launching later in Q2 2025, utilizes Mesh’s SmartFunding technology, allowing retailers to accept crypto without direct handling. This move aims to facilitate mass crypto adoption by streamlining payment processes alongside traditional methods. CEO Bam Azizi emphasized the importance of seamless crypto payments for enhancing global commerce. Mesh recently raised $82 million to expand its stablecoin payments network, reflecting the growing significance of stablecoins in commerce and financial transactions.
This article has been refined and enhanced by ChatGPT.
