The global stablecoin market has reached a pivotal moment in 2025, with the total market capitalization soaring to $242.8 billion**. At the forefront, **Tether’s USDT** has crossed a historic threshold—**surpassing $150.6 billion in market cap, accounting for 62% of the entire stablecoin ecosystem. Meanwhile, Circle’s USDC holds a strong second position with nearly 25% market share, solidifying the duopoly that continues to shape the future of digital dollar adoption.
Beyond these two dominant players, a wave of innovation is sweeping across the sector. From fintech giants like Stripe and PayPal to traditional financial institutions such as Bank of America and Standard Chartered, new entrants are accelerating the integration of stablecoins into mainstream finance. With use cases expanding into cross-border payments, DeFi protocols, and on-chain transactions, stablecoins are increasingly seen as the missing link between traditional finance and Web3.
👉 Discover how next-gen stablecoin platforms are redefining global payments.
Tech Giants Enter the Stablecoin Arena
Stripe: Building Programmable Money Infrastructure
In early May 2025, Stripe launched its “Stablecoin Financial Accounts,” enabling businesses in over 101 countries to hold balances in stablecoin form. This move marks a strategic shift toward embedding crypto-native solutions into its global payment stack.
The company also introduced USDB, a programmable stablecoin built on the Bridge protocol, which Stripe acquired for $1.1 billion in February 2025. Developers can now integrate USDB directly into applications, creating dynamic, automated financial workflows. Additionally, Stripe incentivizes ecosystem growth by rewarding developers who build on USDB.
By acquiring Bridge—a platform already used by Visa to issue stablecoin-enabled payment cards—Stripe is positioning itself at the heart of the stablecoin infrastructure layer.
PayPal: Incentivizing Stablecoin Adoption with Yield
On April 23, PayPal announced that starting in 2025, U.S. users will earn 3.7% annual yield on PYUSD held in their PayPal or Venmo accounts. This yield-based incentive aims to increase user retention and drive broader adoption of PayPal’s native stablecoin.
While currently limited to domestic holdings, PYUSD is already tradable across multiple blockchains, including Ethereum and Solana. The introduction of yield suggests PayPal is laying the groundwork for deeper DeFi integrations and cross-platform utility in the near future.
Coinbase: Introducing x402, a New Internet-Native Payment Standard
Coinbase unveiled x402, a stablecoin payment standard designed for seamless, atomic transactions between APIs, apps, and AI agents. Unlike traditional payment rails, x402 enables real-time settlement without intermediaries—ideal for machine-to-machine economies and decentralized finance automation.
This innovation reflects Coinbase’s vision of building a foundational layer for programmable money in the AI and Web3 era.
Meta Explores Stablecoin Payments for Creators
According to Fortune, Meta is revisiting its interest in digital currencies, engaging in early discussions with crypto firms about launching a stablecoin for cross-border creator payouts. This marks a comeback after the failure of its Libra/Diem project in 2022.
With Ginger Baker—former Plaid executive—now leading product strategy at Meta, the company appears serious about leveraging blockchain to reduce international transfer fees and streamline monetization for content creators.
MoneyGram Launches Global Stablecoin On-Ramp
On May 7, MoneyGram rolled out “MoneyGram Ramps,” a cash-to-stablecoin on- and off-ramp service available in more than 170 countries. Leveraging its vast physical retail network, MoneyGram allows users to convert cash into stablecoins and vice versa—bridging traditional finance with digital asset ecosystems.
This solution is particularly impactful in underbanked regions, where access to digital wallets and crypto liquidity remains limited.
Payment Titans Respond: Mastercard and Visa Embrace Stablecoins
Mastercard’s Broad Stablecoin Integration
On April 28, Mastercard partnered with Circle, OKX, and Paxos to enable consumers to spend their stablecoin balances using regular debit or credit cards. Merchants can now receive fiat settlements directly from stablecoin transactions—eliminating volatility risk while maintaining fast settlement times.
This integration lowers the barrier for everyday users who want exposure to crypto without needing specialized wallets or technical knowledge.
Visa Teams Up with Stripe’s Bridge
Just two days later, Visa announced a collaboration with Stripe’s Bridge platform to allow fintech developers to issue Visa cards linked to stablecoins. Users can spend their USDC or other supported tokens at any merchant accepting Visa—effectively turning stablecoins into universally accepted digital cash.
These moves by Visa and Mastercard signal a broader trend: traditional payment networks are no longer resisting crypto—they’re actively integrating it.
Market Leaders Strengthen Their Foundations
Circle: Challenging SWIFT with Circle Payments Network
On April 21, Circle launched the Circle Payments Network, a global settlement layer designed to replace outdated systems like SWIFT. Partnering with major banks and fintech startups, Circle aims to enable instant, low-cost international transfers using USDC.
This initiative aligns with Circle’s broader legitimacy push: on April 1, it filed for an IPO on the New York Stock Exchange, marking a significant milestone for regulated stablecoin adoption.
Tether: Scaling Across Chains While Preparing a U.S.-Based Stablecoin
Despite seeing its market share dip from 70% to 62% over the past year due to rising competition, Tether remains dominant. Its flagship asset, USDT, now exceeds $150 billion in circulation.
To maintain momentum, Tether has aggressively expanded its multi-chain presence through innovations like LayerZero OFT-based USDT.e and its proprietary scaling stack—Legacy Hub and Plasma. These technologies enhance interoperability across EVM and non-EVM chains.
Additionally, Tether plans to launch a new U.S.-regulated dollar-backed stablecoin later this year, signaling its intent to deepen compliance and expand institutional appeal.
👉 See how leading stablecoins are evolving to meet regulatory and scalability demands.
Emerging Innovators Reshape the Landscape
Ondo Finance: Bridging Real-World Assets Across Chains
On April 18, Ondo Finance brought its Treasury-backed stablecoin USDY to the Stellar blockchain. In May, it launched a cross-chain bridge allowing seamless transfers between EVM chains and Solana, marking the first interoperability solution for tokenized RWA (real-world assets).
With USDY now available on Latin American exchange TruBit (May 12), Ondo is expanding access across emerging markets.
Ethena: The Rise of Synthetic Dollar Innovation
Launched in December 2024, Ethena Labs’ USDe has rapidly grown into the third-largest dollar-pegged asset, reaching $47.45 billion in market cap by May 13.
USDe uses a synthetic model backed by delta-hedged ETH staking yields and short U.S. Treasury futures. Its sister token, USDtb, invests 90% of reserves in BlackRock’s tokenized fund BUIDL, reinforcing trust through institutional-grade assets.
Recent developments include:
- Weekly proof-of-reserves updates since April 12.
- Integration with TON blockchain, bringing USDe to Telegram’s billion-user base.
- Launch on Hyperliquid and HyperEVM, expanding DeFi reach.
Ethena also plans to launch Converge, an RWA-focused chain built on Arbitrum and Celestia, where USDe and USDtb will serve as native gas tokens.
Paxos Builds the Global Dollar Network
Paxos has united industry leaders—including Kraken, Robinhood, Galaxy Digital, and Anchorage Digital—to form the Global Dollar Network (GDN)—an open alliance aimed at accelerating global stablecoin adoption.
As of May 12, GDN added 19 new members like BitMart and Zodia Custody. Even Visa joined in April, underscoring growing institutional confidence in regulated digital dollar ecosystems.
Traditional Banks Join the Race
Bank of America Eyes Stablecoin Issuance
On May 3, Bank of America confirmed it would issue its own stablecoin if Congress passes enabling legislation. CEO Brian Moynihan stated clearly: “We’ll be in this business as soon as laws allow.”
Given its scale and influence, a Bank of America-issued stablecoin could dramatically accelerate enterprise adoption.
Standard Chartered Co-Develops Hong Kong Dollar Stablecoin
In February, Standard Chartered joined forces with Animoca Brands and HKT to form a joint venture aiming to launch a Hong Kong dollar-backed stablecoin, pending approval from the Hong Kong Monetary Authority (HKMA).
This project highlights how regional banking players are tailoring stablecoins to local regulatory environments.
Frequently Asked Questions (FAQ)
Q: What is driving the growth of stablecoins in 2025?
A: Key drivers include improved regulatory clarity, rising demand for cross-border payments, yield incentives (like PYUSD), and deeper integration with traditional financial systems via Visa, Mastercard, and major banks.
Q: Is USDT still safe despite past concerns?
A: Tether has significantly improved transparency with regular attestations and diversified reserves. While risks remain in any centralized model, ongoing audits and cross-chain expansion have strengthened confidence among institutional users.
Q: How do yield-bearing stablecoins like PYUSD work?
A: These stablecoins generate returns by investing reserves in low-risk instruments like short-term Treasuries or repo markets. The yield is then passed on to holders as an incentive to retain value within the issuing platform.
Q: Can stablecoins replace traditional banking infrastructure?
A: Not fully yet—but projects like Circle Payments Network and MoneyGram Ramps show they’re becoming viable alternatives for faster, cheaper international transfers and financial inclusion.
Q: What role do real-world assets (RWA) play in next-gen stablecoins?
A: RWAs like U.S. Treasuries provide transparent, income-generating collateral. Projects like Ondo’s USDY and Ethena’s USDtb use them to enhance stability and generate yields—bridging DeFi with traditional capital markets.
Q: Are big tech companies becoming financial institutions?
A: Increasingly yes. With Stripe, PayPal, Meta, and even Apple exploring crypto integrations, tech firms are evolving into hybrid fintech platforms offering banking-like services powered by blockchain.
👉 Explore how the next wave of stablecoins is transforming global finance today.