The global financial system is undergoing a quiet revolution—and at its heart lies the stablecoin. No longer just speculative assets, stablecoins are rapidly evolving into foundational infrastructure for modern finance, reshaping cross-border payments, treasury management, and real-time settlements.
Cobo stands at the forefront of this transformation, building a full-stack stablecoin infrastructure that includes wallet solutions, risk compliance systems, and yield-generating financial tools. This empowers entrepreneurs to focus on innovation and user growth while seamlessly tapping into the wave of stablecoin-powered financial evolution.
Market Overview: Stablecoin Ecosystem Expands
As of mid-2025, the total stablecoin market cap has reached $249.32 billion**, marking a weekly increase of $1.923 billion. The landscape remains dominated by USDT with a 62.01% share, followed by USDC** at $60.56 billion (24.29%). This sustained growth reflects increasing institutional confidence and real-world adoption.
Weekly Growth Leaders: Emerging Players Gain Traction
- Ripple USD (RLUSD): +$72.67M (+23.52%)
- USDD: +$54.06M (+13.99%)
- Sky Dollar (USDS): +$480.1M (+13.67%)
These gains signal growing diversification beyond the dominant players, with new entrants finding niches in specific regions or use cases.
Blockchain Network Distribution
Top three networks by stablecoin market cap:
- Ethereum: $124.198B
- Tron: $77.202B
- Solana: $11.159B
Fastest-growing networks this week:
- Unichain: +19.85% (USDC dominant)
- Algorand: +12.40% (95.8% USDC)
- Avalanche: +10.47%
Data sourced from Defillama highlights the continued expansion of stablecoins across both established and emerging blockchains.
Key Insights: The Strategic Shift in Crypto Investment
Coinbase’s Vision: Building the Amazon of Crypto Finance
Coinbase is no longer content with being just an exchange. Under CEO Brian Armstrong, the company is actively pursuing acquisitions—rumored targets include Circle, Chainalysis, and Alchemy—to vertically integrate every layer of the crypto financial stack.
This ambition positions Coinbase as a one-stop ecosystem provider: from custody and trading to compliance, data analytics, and even blockchain infrastructure. If successful, it could become the dominant gateway for traditional capital entering digital assets.
Circle’s NYSE Debut: A Milestone for Institutional Adoption
On June 5, 2025, Circle (ticker: CRCL) made its debut on the New York Stock Exchange, raising $1.1 billion with a final valuation of **$12.6 billion**—far exceeding early estimates of $6.7–7.2 billion. The IPO was heavily oversubscribed, with major institutional investors like ARK Invest ($150M) and BlackRock ($60M) backing the offering.
This landmark event underscores a critical shift: stablecoins are now seen as high-margin, low-volatility financial infrastructure—not just crypto tokens.
With over $60 billion in USDC circulation, Circle controls roughly one-quarter of the global stablecoin market. Unlike volatile cryptocurrencies, its business model offers predictable revenue through yield on U.S. Treasury reserves and transaction fees.
Why does this matter?
Tether reported over $14 billion in annual profit in 2024, surpassing giants like Pfizer and Tesla—a clear sign that stablecoin issuers are emerging as de facto blue-chip assets in the digital economy.
Circle may not match Tether’s scale yet, but its regulatory compliance and transparency make it a more palatable investment for traditional finance. Analyst Jon Ma notes Circle trades at a 13.7x EV/Gross Profit and 25.9x P/E ratio—below fintech averages (~31.4x)—with a projected 65% annual growth rate.
However, strong narrative-driven demand has compressed potential returns: base-case IRR drops from 24% to 4.7%, and optimistic scenarios from 47% to 23.7%.
👉 See how regulated financial innovation is unlocking new investment opportunities in digital assets.
Long-term success will depend on Circle’s ability to maintain growth amid tightening regulations—and whether U.S. lawmakers finalize stablecoin legislation in 2025, which could unlock further institutional adoption.
The Hidden Risk: When Stablecoins Threaten Credit Creation
a16z crypto partner Sam Broner raises a crucial concern in his essay “How Stablecoins Become Money”: what happens when trillions flow into 100%-backed Treasury stablecoins?
While seemingly safe, this “narrow bank” model could disrupt traditional banking:
- Stablecoin issuers become massive buyers of short-term Treasuries.
- Banks lose deposits, shrinking their lending capacity.
- Mortgages, SME loans, and consumer credit become scarcer and more expensive.
In essence: the safer stablecoins become, the riskier they are to economic growth.
Broner proposes solutions:
- Tokenized deposits: Let banks issue stablecoins under fractional reserve models.
- Diversified collateral: Expand beyond U.S. Treasuries to other high-quality liquid assets.
- On-chain liquidity loops: Use mechanisms like CDPs or repos to recycle idle reserves into credit markets.
The goal? Evolve stablecoins from “safe dollars” to programmable, efficient, and credit-enabling money—true infrastructure for a dynamic economy.
Real-World Adoption: From Speculation to Operational Efficiency
For years, corporate crypto adoption felt theoretical. That’s changing.
Cobo co-founder Shen Yu predicted in 2023 that once FASB rules allowed fair-value accounting for crypto assets (effective late 2024), enterprise adoption would accelerate—and it has.
Webus International: XRP as Corporate Treasury Infrastructure
Chinese travel tech firm Webus International filed with the SEC to establish a $300 million XRP treasury, funded via debt rather than equity—signaling strong confidence in ROI.
By integrating Ripple’s payment network:
- Cross-border settlements are faster and cheaper.
- Driver payouts and booking transparency improve globally.
- Real-time FX conversion reduces currency risk.
Market response was immediate: Webus stock rose ~9%, and XRP gained 2%—proof that capital now rewards practical crypto integration.
This shift—from “Bitcoin as digital gold” to “XRP as operational engine”—marks the rise of the crypto-native enterprise: companies using blockchain not for speculation, but to solve real business problems.
Innovation Watch: What’s Next in Stablecoin Tech?
USDT0 Launches XAUT0: Gold Enters DeFi
Stablecoin protocol USDT0 has launched XAUT0, a DeFi-friendly gold token compatible with Tether’s existing XAUT. Initially debuting on The Open Network (TON), it plans expansion to other DeFi chains by Q3 2025.
With $1.3 billion in USDT0-backed tokens already in circulation across 10 chains, this move strengthens the trend of real-world asset (RWA) tokenization—bringing inflation-resistant assets into decentralized finance.
Paradigm’s Orbital Protocol: Solving Multi-Stablecoin AMM Inefficiency
Paradigm’s research team introduced Orbital, a next-gen AMM protocol that supports up to 10,000 stablecoins in a single pool.
By modeling prices around a “dollar orbit,” Orbital maintains fair trading even if one stablecoin depegs. Liquidity providers can customize strategies—concentrating near $1 for efficiency or spreading wider for volatility capture.
This innovation addresses a key bottleneck: current AMMs struggle with capital efficiency in multi-stablecoin environments. Orbital could become the backbone for a fragmented but interoperable stablecoin future.
Keeta & SOLO Launch PASS: On-Chain Credit Identity
Blockchain Keeta and credit data platform SOLO unveiled PASS, the first system to convert real-world financial credentials into verifiable, tokenized credit data.
Integrated with KYC, income proof, and asset records, PASS enables:
- Privacy-preserving undercollateralized lending.
- Credit scoring for DeFi users.
- Seamless access to traditional financial services via wallets.
Supported by former Google CEO Eric Schmidt, PASS represents a leap toward portable, programmable credit infrastructure—bridging Web2 finance with Web3 privacy.
Bitfinex & Tether Launch Stable: The First USDT-Native L1
Bitfinex and Tether launched Stable, the world’s first Layer 1 blockchain with USDT as native gas.
Key features:
- Free peer-to-peer USDT transfers.
- Smart contracts run directly on stablecoins.
- No gas fees for end users.
- Native fiat on/off ramps and cross-chain transfers via USDT0.
Currently in internal testnet, Stable aims to become the foundation for next-gen financial apps—from remittances to embedded banking—by removing legacy system friction.
Enterprise & Institutional Moves
Uber Explores Stablecoins for Cost Reduction
Uber’s CEO confirmed the company is evaluating stablecoins to reduce operational costs in its global ride-hailing, delivery, and freight businesses.
Given Uber’s massive cross-border payment volume, even small improvements in settlement speed and fee reduction could yield significant savings—potentially making it a mainstream catalyst for crypto payments.
Revolut Enters Crypto Derivatives
Digital bank Revolut is hiring a Crypto Derivatives GM to build out a new product line—from zero to scale.
Already offering spot crypto trading in Europe under MiCA-compliant frameworks, this move signals deepening convergence between traditional finance and digital assets—especially as regulated platforms like GFO-X emerge.
Capital Flows & Strategic Investments
Limited Raises $7M for Self-Custody Banking
Self-custody fintech Limited secured $7 million in seed funding to expand its global USDC/EURC banking service.
Features:
- Users hold private keys.
- Visa card integration.
- Instant cross-border transfers with zero fees.
Available in 176 countries across web, iOS, and Android—targeting businesses seeking protection from inflation and banking restrictions.
Tether Invests in Latin America & Africa
Tether doubled down on emerging markets:
- Led Series A for Chile’s Orionx, expanding stablecoin remittance services across Latin America.
- Backed Nigeria’s Shiga Digital, building a USDT-based payment gateway for everyday commerce.
These investments reflect a broader strategy: turning USDT from a trading token into real-world money—especially in high-inflation economies where financial inclusion remains low.
Regulatory Developments
Dubai Approves Ripple’s RLUSD
The Dubai Financial Services Authority (DFSA) approved Ripple’s RLUSD for use in the Dubai International Financial Centre (DIFC), enabling ~7,000 firms to use it for cross-border settlements.
RLUSD is 1:1 USD-backed and already approved in New York—marking another step toward global regulatory acceptance of enterprise-grade stablecoins.
UK Launches First Regulated Pound Stablecoin
BCP Technologies launched tGBP, the UK’s first FCA-registered pound-pegged stablecoin after a 14-month sandbox review.
Each tGBP is backed by GBP held in segregated UK accounts—offering local businesses a compliant alternative to dollar-denominated stablecoins and reducing reliance on offshore systems.
U.S. Stablecoin Bill: Final Push Ahead
The Senate’s GENIUS Act—which mandates U.S. Treasuries as reserves for payment stablecoins—could be voted on by June 9, 2025. However, key disagreements remain between House and Senate versions:
- Oversight authority (Fed vs Treasury).
- Foreign regulatory recognition.
- Restrictions on Big Tech issuers (e.g., Meta).
Final passage would establish the world’s first comprehensive stablecoin framework—setting a global precedent.
Macro Trends Shaping the Future
Stablecoins as Tools of Dollar Dominance
By requiring Treasuries as backing, U.S. legislation turns stablecoins into a new global distribution channel for American debt, reinforcing dollar supremacy while enabling faster, cheaper international payments via blockchain—bypassing SWIFT limitations.
Meanwhile:
- Hong Kong takes a strict licensing approach.
- Singapore fosters innovation via sandboxes.
This regulatory divergence may lead to jurisdictional arbitrage—but also reflects competition for leadership in digital finance.
Geopolitical Tensions Boost XRP Demand
Rising global uncertainty has increased demand for alternative payment rails. With RLUSD approved in Dubai and Ripple expanding across MENA, XRP is gaining traction as a resilient cross-border solution—especially where traditional banking access is limited or politicized.
Space Travel Meets Crypto Payments
F2Pool co-founder Wang Chun—the first Bitcoin billionaire in orbit—suggested that as space tourism grows, so will the need for in-space cryptocurrency payments.
His historic polar orbit mission underscores how crypto wealth is now funding frontier exploration—and may soon power transactions beyond Earth.
Frequently Asked Questions (FAQ)
Q: Why is Circle’s IPO significant for the crypto industry?
A: Circle’s NYSE listing marks one of the first major exits for a regulated crypto-native company. It validates stablecoins as scalable financial infrastructure and opens doors for institutional investors seeking exposure without direct crypto ownership.
Q: Can stablecoins really replace traditional banking functions?
A: Not fully yet—but they’re getting closer. With innovations like tokenized deposits and on-chain credit scoring (e.g., PASS), stablecoins are evolving from payment tools into systems that can support lending, savings, and treasury management—while maintaining efficiency and transparency.
Q: Are stablecoins safe during economic downturns?
A: Most major stablecoins (USDC, USDT) have proven resilient due to strict reserve management. However, systemic risks exist if large-scale redemptions strain reserve assets (like Treasuries). Regulatory clarity helps mitigate these risks by enforcing transparency and capital requirements.
Q: How do new protocols like Orbital improve DeFi?
A: Orbital solves inefficient capital usage in multi-stablecoin pools by applying concentrated liquidity principles in higher dimensions. This means lower slippage, better yields for LPs, and more reliable swaps—critical as DeFi matures.
Q: Will more big companies adopt stablecoins like Uber might?
A: Yes—especially multinationals with high cross-border transaction volumes. Stablecoins offer faster settlement (minutes vs days), lower fees (near-zero vs 3–5%), and better cash flow predictability—making them economically compelling beyond speculation.
Q: What role do emerging markets play in stablecoin adoption?
A: They’re leading adoption. In countries with high inflation or underbanked populations (e.g., Argentina, Nigeria), stablecoins serve as everyday money—for savings, remittances, and commerce—driving real utility far beyond developed markets.
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