Étienne Girard
The global market capitalization of stablecoins has officially crossed the $250 billion milestone, signaling a major leap in adoption and institutional trust in these digital assets.
According to data from CoinGecko, the market now stands at $250.3 billion, with U.S. dollar-pegged stablecoins accounting for $245.5 billion of the total. Tether (USDT) remains the dominant player, boasting a market cap of over $153 billion, followed by Circle’s USDC at approximately $60.9 billion.
Hank Huang, CEO of Kronos Research, described the $250B threshold as a defining moment:
“Crossing this mark confirms stablecoins have evolved from an experiment into a critical part of the global financial ecosystem.“
Regulatory Clarity Spurs Institutional Confidence
The expansion of the stablecoin market is largely attributed to clearer regulatory guidelines and the ongoing rise of decentralized finance (DeFi). Nick Ruck, Research Director at LVRG, explained that regulatory progress—particularly in the U.S.—has given both users and institutions greater confidence in the asset class.
In a major step, the U.S. Senate recently advanced the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), which sets legal parameters for dollar-backed stablecoins.
Key provisions of the act include:
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Full collateralization by U.S. dollars or highly liquid assets
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Mandatory annual audits for issuers exceeding $50B in market cap
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Specific frameworks for foreign stablecoin issuers
Global Impact: Hong Kong and Traditional Finance Join the Movement
Following the U.S., Hong Kong approved its own stablecoin legislation on May 21, introducing a licensing system for fiat-backed stablecoin providers operating in the region.
These regulatory developments have opened the door for traditional financial institutions (TradFi) to explore the sector. Major banks, including JPMorgan, Bank of America, CitiGroup, and Wells Fargo, are reportedly collaborating on a joint stablecoin initiative—a move that could further legitimize the sector and accelerate adoption.
DeFi and DEX Activity Fuel Stablecoin Demand
As the DeFi ecosystem continues to expand, stablecoins have become the primary medium of exchange across protocols. According to DefiLlama, the total value locked (TVL) in DeFi protocols now exceeds $113.17 billion.
Moreover, decentralized exchanges (DEXs) captured 25% of the global spot trading volume in May, setting a new record. Simon Kim, CEO of crypto VC firm Hashed, called it a “clear shift from centralized to decentralized finance.”
What’s Next for the Stablecoin Landscape?
Looking ahead, Kronos Research’s Huang expects rapid sectoral growth, suggesting the stablecoin market could double by 2026.
He also pointed to the emergence of new issuers poised to challenge USDT and USDC, including bank-issued tokens and projects like USD1, a Trump-endorsed stablecoin initiative.
“The stablecoin ecosystem is evolving beyond just two players. We’re entering a period of diversity, innovation, and fierce competition,” Huang concluded.
