#582
The Stablecoin Surge
Published:
Mar 15, 2025
Author:
Sarah Parsons Wolter
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The stablecoin race is on, and the world's largest banks and fintech players are finally catching up to crypto-native frontrunners. From Bank of America to PayPal, everyone is trying to carve out a slice of a market once dominated by Tether and Circle. The difference? This time, regulators aren’t just standing by – they’re actively shaping the rules of engagement. It’s a far cry from the days when Meta’s Libra stablecoin was met with regulatory brick walls. Now, with clear legal frameworks emerging in the U.S., EU, and UK, traditional financial giants smell an opportunity they simply can’t afford to miss.
The numbers back up the hype: with global stablecoin supply surging past $232 billion and transaction volumes breaking new records, it’s no wonder major players are diving in. Elon Musk’s SpaceX, Stripe, and even Buy Now, Pay Later giant Klarna are finding use cases that stretch far beyond the crypto trading world.
Yet, despite the rush to launch their own coins, banks and fintech companies still face an uphill battle. The dominance of Tether (USDT) and Circle (USDC) is hard to crack, and the sheer volume of transactions they handle makes newcomers look like minnows in a vast ocean. Even PayPal’s PYUSD, backed by a massive payments ecosystem, is barely making a dent compared to Tether’s $131 billion monthly transaction volume.
So, what does all this mean for Bitcoin? Surging stablecoin supply usually signals pent-up demand, as traders and institutional investors typically retain stablecoins while waiting for optimal market conditions to invest in assets like Bitcoin and Ethereum. If history is any guide, Bitcoin could be in for another bullish wave.
One thing is certain: as stablecoins become more embedded in the financial system, their influence on crypto markets – and beyond – will only grow. The question remains though, are banks too late to the party?
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