Stablecoin Market Capitalisation Surpasses $250 Billion

The total market capitalisation of stablecoins has exceeded $250 billion for the first time. Of this amount, $245.5 billion is attributed to “stable coins” backed by the US dollar.

Leading the pack is Tether’s USDT with a capitalisation exceeding $153 billion, followed by Circle’s USDC at $60.9 billion.

Hank Huang, CEO of Kronos Research, described surpassing the quarter-trillion-dollar mark as a “turning point,” noting that “stablecoins are no longer an experiment but a necessity.”

According to him, the segment is poised for rapid expansion, potentially doubling by 2026. Huang highlighted the rapidly changing landscape among issuers. The dominance of USDT and USDC could be challenged by new players, such as those linked to US President Donald Trump USD1 and bank-issued tokens.

Analysts attribute the growth to increased regulatory clarity and the spread of DeFi. Nick Ruck, Director of Research at LVRG Research, confirmed these as key factors.

On May 19, the Senate advanced the GENIUS Act. The initiative aims to establish a legal framework for dollar-pegged cryptocurrencies and has received Trump’s backing.

The document requires stablecoins to be fully backed by US dollars or highly liquid assets. Issuers with a capitalisation exceeding $50 billion must undergo annual audits.

Back in May 22, the WSJ reported that companies co-owned by JPMorgan, Bank of America, CitiGroup, Wells Fargo, and other major banks are discussing launching a joint stablecoin.

In April, Citigroup forecasted the capitalisation of “stable coins” to grow to $3.7 trillion in five years, while Standard Chartered projected it to reach ~$2 trillion by 2028.