From the high-inflation streets of Argentina to DeFi protocols on Ethereum, and to creator tipping on Instagram, stablecoins have moved from the margins to the backend systems of mainstream platforms. Now, the story has two directions: one is a continuation of 'bottom-up' developments, where platform economies and peer-to-peer networks continue to use stablecoins to fill existing payment gaps; the other is a 'top-down' integration, where traditional giants like Visa, Stripe, and BlackRock are proactively embedding stablecoin infrastructure, institutionalizing and regulatory-compliant technology that was once limited to insiders.
Meta and Tether are two footnotes in this transition. One bets on a 'self-contained' payment loop within the platform, while the other lays out a foundational P2P network integrating AI and crypto. Although their starting points are different, they both see the same thing: stablecoins are not just new currencies but new interfaces.
Ultimately, the problem stablecoins need to solve is not just payment, but connection. Connecting people, connecting systems, and connecting the operational logic of the next generation of digital ecosystems.
Market Overview and Growth Highlights
The total market capitalization of stablecoins reached $242.548 billion, with a week-over-week growth of $321 million. In market dynamics, USDT continues to dominate with a 62.39% share; USDC ranks second with a market cap of $60.132 billion (about $60.13 billion), accounting for 24.79%.
Growth Highlights
Top 3 Fastest Growing Stablecoins This Week:
OpenDollar USDO (USDO): Growth $49.44M (+30.6%)
USDD (USDD): Growth $43.14M (+13.62%)
Dai (DAI): Growth $356.47M (+8.56%)
Blockchain Network Distribution
Top Three Networks by Stablecoin Market Capitalization:
Ethereum: $122.52B
Tron: $74.22B
Solana: $11.92B
Top 3 Fastest Growing Networks This Week:
Hyperliquid: +31.42% (USDC accounts for 97.91%)
Sei: +25.53% (USDC accounts for 83.55%)
Unichain: +25.11% (USDC accounts for 56.29%)
Data from defillama
Focus Observation
🎯 New Use Cases for Stablecoins: How Meta Constructs an 'Internal Cycle' in the Creator Economy.
Meta is quietly returning to the crypto payment market, but this time with a different posture and direction.
According to (Fortune), Meta is in talks with several crypto institutions to deploy a stablecoin payment system on Instagram for cross-border settlement for creators. Compared to the ambition of 'creating a global currency' during the Diem project phase, the current strategy is more pragmatic, focusing on solving a real issue—fund flow and creator payments within the platform.
The advantages of stablecoins are evident: low cost, near real-time transactions, and no need for banks' operating hours. However, the last-mile barrier still exists, as users find it challenging to conveniently exchange stablecoins for local fiat currency for everyday consumption.
If platforms like Instagram and WhatsApp support stablecoin tipping, advertising, and even product purchases in the future, the entire creator economy can form a self-sustaining internal cycle: Meta pays creators in stablecoins, who then use them for promotion, tipping, or consumption within the platform. Funds need not leave the platform, increasing stickiness and amplifying commercial value.
Of course, complete cash-out is not realistic. Creators ultimately need to convert revenues into usable cash. One solution is to offer stablecoin debit cards through the Visa/Mastercard network, allowing users to complete daily spending without redeeming fiat. This is not traditional 'cash-out' but more like a 'shell' usage of traditional payment networks.
From this perspective, the role of stablecoins is also shifting: they do not necessarily have to become a global settlement system but are more suited as value carriers within platform economies. As long as funds remain within the ecosystem, user experience improves, compliance costs decrease, and regulatory friction is alleviated.
Of course, this does not mean that regulation is entirely unnecessary. Senator Elizabeth Warren has pointed out Meta in the latest stablecoin bill, warning that the involvement of large tech companies in finance could pose risks to privacy and monopolies. Whether this 'pragmatic return' can smoothly land during the policy window is worth watching.
🎯 Stripe and Tether are laying out the native payment layer for the AI economy.
The global AI competition is in full swing. While we marvel at the capabilities of large models for generating content, writing code, and providing customer service, a fundamental question is rarely addressed: how will AI agents participate in economic activities?
In other words, how will it 'spend money'? And how will it 'make money'?
If AI Agents are to become autonomous participants in economic activities on a large scale (and they undoubtedly will), they will clearly not use human-designed banking systems but rather a payment infrastructure adapted to the pace of AI—high-frequency, real-time, automated, and with extremely low trust costs.
This is an undervalued track, and it is also the track that Stripe and Tether are both entering.
Two companies, one the largest payment processing platform globally and the other the largest stablecoin issuer, have core businesses that are at odds. However, they both recognize that traditional payment systems are not suitable for AI Agents. Blockchain and stablecoins, especially their programmability and native cross-border capabilities, may represent the most natural monetary layer in future AI economies.
Stripe has adopted a gradual approach: integrating stablecoins (USDC) into existing compliant payment networks and incorporating AI risk control models (the newly developed Transformer model can improve payment fraud detection rates from 59% to 97%), along with tools like Bridge API, enabling businesses to seamlessly enable on-chain payments in their existing operations. Simple, robust, and well compatible with existing systems.
Tether's path resembles a 'reconstruction': it has recently launched QVAC, an open-source AI platform that natively supports USDT and Bitcoin payments, integrating decentralized communication tools like Keet, aiming to build a peer-to-peer network driven by AI Agents. It emphasizes autonomy, censorship resistance, and trustlessness.
Although on two different paths, the goals are aligned: to build a native payment system required for an AI-driven economy.
The AI economy may launch at moments we have yet to perceive, and the competition for its underlying monetary infrastructure has already begun.
🎯 From offshore innovation to compliance entry, Anchorage's acquisition of Mountain sends a signal.
Anchorage Digital—America's only digital asset bank holding an OCC federal license—has acquired Mountain Protocol, bringing the latter's stablecoin license in Bermuda into its fold. This is not just business expansion but a signal: the stablecoin industry is moving from 'offshore experimentation' to 'compliance coexistence.'
Offshore regions like Bermuda have always been fertile ground for innovation experiments, and Anchorage’s acquisition demonstrates that this model can integrate with U.S. federal regulatory frameworks, achieving seamless transitions from product development to mainstream market expansion. At the same time, new OCC rules clearly allow regulated banks to buy, sell, and custody digital assets, indicating that stablecoins are no longer just 'experiments running in regulatory gray areas' but can be assets held by banks and allocated by funds.
This case explores the future direction of the stablecoin industry: first, innovating new products through offshore exploration, then entering traditional systems with compliance. This time, the stablecoin industry not only found a breakthrough but also began building true financial legitimacy.
Market Adoption
🌱 MoonPay partners with Mastercard to launch a stablecoin payment card, covering 150 million global merchants.
Key Takeaways
MoonPay and Mastercard announce a partnership allowing users to pay with stablecoins at over 150 million merchants worldwide, significantly expanding the application scenarios for digital dollars in the real world.
This will enable users of 'all crypto wallets' to access a virtual Mastercard directly connected to their stablecoin balances, allowing them to spend without needing to convert crypto assets into fiat first.
Users can spend stablecoins directly without withdrawing through exchanges, while merchants receive funds through Mastercard's existing payment infrastructure, creating a win-win situation.
Why It Matters
MoonPay's partnership with Mastercard builds a direct channel from crypto to physical consumption, not only enhancing the practicality of stablecoins but also simplifying the user experience by reducing fiat exchange steps, paving the way for large-scale adoption of stablecoins through innovative acceptance of crypto assets within regulatory frameworks.
🌱 Hong Kong fintech company RedotPay's crypto payment card is launched in South Korea, supporting Visa and stablecoin transactions.
Key Takeaways
Hong Kong fintech company RedotPay has launched its cryptocurrency payment card (including physical and virtual cards) in South Korea, allowing users to make payments at all merchants in Korea that accept Visa.
The card supports real-time stablecoin transactions, requiring $10 for a virtual card and $100 for a physical card, with low verification requirements. RedotPay claims its global user base has exceeded 4 million.
By introducing convenient cryptocurrency and stablecoin payment options, RedotPay further promotes the use of digital assets in everyday consumption.
🌱 The Dubai government partners with Crypto.com to accept cryptocurrency payments for government service fees.
Key Takeaways
The Dubai government has reached an agreement with Crypto.com, allowing individuals and businesses to pay government service fees through the Crypto.com digital wallet, which will automatically convert cryptocurrency to dirhams.
This agreement is a key step in Dubai's cashless society strategy, expected to add at least 8.2 billion dirhams (about 2.2 billion USD) to the economy annually.
Crypto.com has obtained a license from Dubai's Virtual Assets Regulatory Authority (VARA), becoming a major cryptocurrency platform officially recognized by Dubai after exchanges like Binance and OKX.
Dubai is reinforcing its position as a Middle Eastern crypto hub by introducing crypto payment channels; this government-level adoption will significantly promote the mainstreaming of crypto payments.
🌱 Bhutan becomes the first country to accept Bitcoin and cryptocurrency tourism payments through Binance Pay.
🌱 FalconX partners with Standard Chartered to provide fiat settlement for institutional cryptocurrency investors in Singapore.
Macro Trends
🔮 PayPal digital currency executive: Bank participation is key to unlocking the full potential of stablecoins.
Key Takeaways
PayPal's Vice President of Digital Currency Jose Fernandez da Ponte stated at Consensus 2025 that banks must join the crypto space to ensure the success of stablecoins, providing critical infrastructure from custody to fiat channels.
MoneyGram CEO Anthony Soohoo emphasized that the upcoming U.S. stablecoin regulations will be a 'major breakthrough' that addresses trust issues and stimulates adoption; new issuers are expected to enter the market after regulations are clarified, followed by a period of market consolidation.
Stablecoins have become tools for value storage and cross-border payments in high-inflation countries. MoneyGram helps users in these regions convert digital dollars to local cash through nearly 500,000 cash access points, while enterprise applications focus on cross-border funding and treasury management.
As the stablecoin market reaches $230 billion, PayPal and MoneyGram executives are optimistic about industry development post-regulation, stating that bank involvement will provide the connectivity and infrastructure needed for stablecoins to scale beyond the crypto-native circle into a trillion-dollar utility-driven scale.
🔮 Deutsche Bank: Stablecoins will enter the mainstream by 2025, driven by U.S. regulation.
Key Takeaways
Deutsche Bank predicts that stablecoins will gain mainstream adoption by 2025; although there were some opposing voices in the U.S. Senate last week, the Trump administration is advancing landmark cryptocurrency regulations.
The market capitalization of stablecoins has surged from $20 billion in 2020 to $246 billion currently, with USDT accounting for about $150 billion. Stablecoins have become the main medium for crypto trading, supporting over two-thirds of trading volume.
(GENIUS Act) and (STABLE Act) are advancing stablecoin regulatory frameworks at federal and state levels, respectively. The U.S. Senate's (GENIUS Act) calls for federal regulation of stablecoins with market caps over $10 billion, while the House's (STABLE Act) urges state-level regulation unconditionally.
Stablecoins are increasingly becoming strategic assets, with 83% pegged to the U.S. dollar, and Tether has become one of the largest holders of U.S. Treasury bonds, reinforcing the dollar's dominance in a globalized environment. Standard Chartered predicts that the supply of stablecoins could grow nearly tenfold once regulatory clarity is achieved.
🔮 Coinbase's earnings report fell short of expectations, but stablecoins and the Deribit acquisition highlight its payment strategy.
Key Takeaways
Coinbase's first-quarter revenue of $2.03 billion did not meet expectations, with trading revenue down 19%, but the significant growth of its USDC stablecoin balance showcases its payment business potential.
The company spent $2.9 billion to acquire the derivatives exchange Deribit, and analysts believe this move will strengthen Coinbase's long-term competitiveness in the crypto payment infrastructure sector.
Despite pressures on trading business, Coinbase's diversified layout in stablecoin services, custody, and trading technology is becoming a key revenue source to hedge against market volatility.
By developing the stablecoin ecosystem and strategically acquiring Deribit, Coinbase is transitioning from a single trading platform to a comprehensive payment infrastructure provider, a shift that is crucial for its long-term leadership in the crypto payment space.
🔮 BitGo executives: The banking industry is exploring stablecoins to avoid losing market share.
Key Takeaways
Ben Reynolds, Director of Stablecoins at BitGo, revealed that their 'stablecoins as a service' product has attracted significant inquiries from U.S. and international banks, which are not seeking innovation but are worried about deposits flowing to crypto-native competitors.
Yield-bearing stablecoins are becoming tools for fast, frictionless movement of collateral, particularly favored by DAOs, protocols, and institutional investors, addressing the slow and frictional transfer of traditional funds between exchanges and brokerage accounts.
The stablecoin market has reached a scale of $230 billion, but regulatory classification will determine market development; tokenized treasury funds fall under securities, while true stablecoins do not, shaping different market dynamics.
Traditional financial institutions are being forced to adopt defensive strategies to enter the stablecoin market, indicating that the digital dollar is gradually encroaching on traditional bank deposit business, while yield-bearing stablecoins bring programmability and flexibility without permission to financial infrastructure.
🔮 Stablecoins are becoming a transformative force in cross-border payments, with Ripple and Kraken executives optimistic about global application prospects.
Key Takeaways
Ripple's stablecoin senior vice president Jack McDonald and Kraken's global consumer business head Mark Greenberg stated at the Consensus 2025 conference that stablecoins are at a critical point of becoming a key component of the global payment system.
Both executives emphasized that stablecoins are reshaping the cross-border payment space, providing a better alternative to the fragmented and inefficient traditional financial infrastructure, leading to truly meaningful innovations in global payments.
Experts believe that the future development of stablecoins will include yield-generating products, but regulatory challenges remain, and the policy environment will influence the long-term development direction of this field.
Leading enterprises in traditional finance and the crypto industry are optimistic about the key role of stablecoins in the global payment system, indicating that stablecoins have evolved from pure crypto assets to infrastructure that addresses real payment pain points, with applications extending from the crypto circle to a broader financial field.
🔮 Citi predicts: Stablecoins will expand beyond cryptocurrency trading and become part of the mainstream economy.
Key Takeaways
Citi expects the stablecoin market to reach $1.6 to $3.7 trillion by 2030 with regulatory support.
Stablecoins are shifting from transaction settlement tools to payment uses, especially showing significant growth in cross-border transfers and merchant settlements.
The current stablecoin market is around $240 billion, dominated by Tether and Circle.
The expansion of stablecoins into the mainstream economy may reshape the payment ecosystem, becoming a new pillar of the international currency market and challenging traditional currency processing methods.
Capital Arrangements
💰 Ripple reportedly in talks to acquire Circle for $4-5 billion; USDC issues an additional $200 million on the same day.
Key Takeaways
Reports indicate that Ripple has made a buyout offer valued between $4 billion and $5 billion, targeting the issuer of the USDC stablecoin, Circle.
On May 9, two large minting events for the USD Coin (USDC) occurred, totaling about $200 million: one transaction of $100 million came from an unknown wallet on the Algorand blockchain, while another $100 million was minted by USDC Treasury.
The stablecoin market may witness significant consolidation, as USDC's ongoing expansion and potential acquisition rumors have sparked heightened industry attention regarding future competitive landscapes.
💰 Anchorage Digital acquires USDM issuer Mountain Protocol, expanding stablecoin business at a federally chartered bank.
Key Takeaways
U.S. federally chartered crypto bank Anchorage Digital acquires yield-bearing stablecoin issuer Mountain Protocol, integrating its technology, team, and licensing structure, pending regulatory approval.
Anchorage holds a federal bank charter issued by the U.S. OCC (Office of the Comptroller of the Currency), making it the only digital asset bank in the U.S. with this qualification, representing the highest level of compliance recognition in U.S. financial regulation.
Mountain holds a digital asset business license from the Bermuda Monetary Authority (BMA), representing an open regulatory model for crypto innovation in offshore financial centers. This acquisition combines two regulatory frameworks; Anchorage may provide a U.S. regulatory compliance channel for Mountain's products through its federal bank charter while retaining the international operational flexibility of the Bermuda license.
The combination of two regulatory models reflects a key strategy for crypto finance transitioning into the mainstream financial system: leveraging offshore innovative regulatory environments to develop products, then expanding into institutional markets with the recognition of U.S. federal regulatory agencies. This model may serve as a reference path for other crypto financial institutions entering the regulatory framework.
💰 Coinbase invests in Canadian stablecoin issuer Stablecorp, expanding into regional markets.
Key Takeaways
Coinbase has invested an undisclosed amount in Canadian stablecoin issuer Stablecorp and will assist in promoting its fiat-backed stablecoin QCAD.
Coinbase Canada CEO Lucas Matheson states that Canada lacks a peer-to-peer payment system, with high wire transfer costs ($45) and complicated processes, while stablecoins can enable 24/7, instant, borderless payments.
Despite the global stablecoin market reaching $245 billion, QCAD's circulation is only about $175,000. Matheson urges the Canadian government to develop a national digital asset strategy, viewing stablecoins as payment tools rather than securities.
This move shows mainstream exchanges are actively positioning themselves in regional stablecoin markets. Despite new Canadian Prime Minister Mark Carney's historically critical stance on cryptocurrencies, Coinbase is pushing for clearer regulations to promote the development of Canada's stablecoin ecosystem.
Regulatory Compliance
🏛️ The U.S. Senate's GENIUS Act revision proposes to bring foreign stablecoins like Tether under AML regulations, potentially impacting DeFi.
Key Takeaways
The revised (GENIUS Act) (S.1582) aims to expand regulatory coverage, bringing foreign stablecoin issuers (like Tether) serving U.S. users under U.S. jurisdiction, regardless of where they are headquartered.
The bill expands the definition of 'digital asset service providers' to include developers, validators, and self-custody wallets, requiring these entities to comply with anti-money laundering (AML) regulations.
This bill is seen as potentially beneficial for Tether, but it may also pose challenges for proponents of decentralized finance (DeFi), marking a tightening of U.S. regulatory control over stablecoins and digital assets.
If the bill is ultimately passed and implemented, it will strengthen U.S. regulatory oversight of the global stablecoin market, particularly targeting major players like Tether, and may profoundly change the regulatory landscape and operational models in the DeFi space.
🏛️ Wyoming will issue the first state-level stablecoin in July, appointing Inca Digital for security assurance.
Key Takeaways
The Wyoming Stable Token Commission has partnered with analytics service provider Inca Digital to help monitor and reduce fraud risks associated with state-level stablecoins.
The state's stablecoin is expected to officially launch in July, becoming the first state-issued stablecoin in the U.S., marking the formal entry of state governments into the cryptocurrency issuance space.
Wyoming Stable Token Commission Executive Director Anthony Apollo stated that the collaboration with Inca Digital is a key step in the state’s commitment to transparency, security, and innovation.
The Wyoming stablecoin will set a precedent for U.S. government agencies issuing digital currencies, providing a reference model for other states and local governments, while showcasing how the U.S. government is advancing cryptocurrency innovation and regulation at the state level.
🏛️ Controversy over the U.S. Senate stablecoin bill continues: Trump's conflicts of interest are a focal point, and there are loopholes in restrictions on big tech companies.
Key Takeaways
The U.S. Senate's 'Guiding and Establishing American Stablecoin National Innovation' (GENIUS) Act is expected to return for a vote after previously failing to gain the necessary 60 votes. The latest version may reappear on the agenda as soon as next week. Trump's advisors indicate that he wants to complete the legislation before the August congressional recess.
Latest drafts obtained by CoinDesk show that despite new restrictions on large tech companies issuing stablecoins, which require non-financial public companies to obtain unanimous approval from a stablecoin certification review board, criticisms highlight significant loopholes, such as not applying to private companies like X and TikTok.
The main opposition from Democrats regarding Trump's conflicts of interest in crypto business remains unaddressed in the new version, especially after MGX announced it would acquire Binance shares through USD1 stablecoin issued by Trump-associated company World Liberty Financial, raising further controversy.
This stablecoin bill marks America's first attempt to establish a federal regulatory framework for stablecoin issuers. Its fate not only concerns the future of the crypto industry but highlights the tense relationship between political interests and regulatory responsibilities. Despite ongoing controversies, bipartisan legislators are still pushing the legislation forward, indicating broad recognition of stablecoins' strategic importance as tools supporting the international status of the dollar.
🏛️ Brandon Lutnick, son of the U.S. Commerce Secretary, claims he has personally verified Tether's reserves.
🏛️ The Central Bank of Brazil plans to restrict stablecoin transfers.
🏛️ Overview of cryptocurrency OTC business licenses: What are the differences in legal compliance in Hong Kong, the EU, and the U.S.?
New Product Launch
👀 Tether launches a decentralized AI platform QVAC, replacing data centers with device operations.
Key Takeaways
Tether has announced the launch of QVAC (Quantum Universe Autonomous Computer), a localized AI development platform that allows AI models and applications to run entirely on user devices without cloud connections, ensuring user data privacy and autonomy.
QVAC adopts a modular architecture, supporting peer-to-peer networks, scalable to trillion-level AI agents, and allows AI agents to autonomously conduct Bitcoin and USDT transactions through Tether's WDK, creating a decentralized self-sustaining AI system.
Tether is set to launch the first QVAC applications, including a cloud-free local translation tool QVAC/Translate and a private health tracker QVAC/Health, and plans to open-source the software development kit.
👀 VanEck launches tokenized U.S. Treasury fund $VBILL across multiple blockchains, supporting 24/7 liquidity.
Key Takeaways
VanEck, managing $120 billion in assets, partners with tokenization company Securitize to launch the first tokenized U.S. Treasury fund, $VBILL, deployed across multiple chains including Ethereum, Avalanche, Solana, and BNB Chain, and achieving cross-chain interoperability via Wormhole.
This fund provides investors with on-chain investment channels for short-term U.S. Treasuries, supporting 24/7 liquidity and real-time settlement, with assets custodied by State Street, daily pricing through Redstone oracle services, and a minimum investment threshold of $100,000 on most blockchains and $1 million on Ethereum.
VBILL supports Circle's USDC stablecoin for 24/7 deposits and achieves atomic-level liquidity with Agora's AUSD stablecoin, allowing investors to complete redemption transactions in one step through smart contracts.
This product represents the acceleration of traditional financial giants into tokenized physical assets, following the entries of BlackRock and Franklin Templeton, with VanEck's participation further driving on-chain liquidity for fixed-income products like U.S. Treasury bonds.
👀 Bakkt partners with DTR, focusing on stablecoins and crypto infrastructure.
Key Takeaways
Bakkt is transforming into a crypto infrastructure provider, focusing on stablecoins and global payments, with partner DTR providing AI and payment support.
New products are expected to launch in Q3 2025, including merchant checkout plugins and white-label AI plugins.
Despite declining revenues, Bakkt seeks growth through stablecoins and AI financial tools, positioning itself as a leader in programmable currency and agency commerce in the future.
Bakkt's strategic restructuring and partnership with DTR may drive the application of stablecoins in global payments, accelerating the market share of programmable financial products.
👀 Squads launches Solana-based 'Altitude' enterprise-level stablecoin accounts, receiving strategic investment from Haun Ventures.
Key Takeaways
Squads has launched the enterprise-level stablecoin native dollar account 'Altitude' in addition to providing multi-signature wallets and personal financial services Fuse for Solana projects, allowing users to open a global dollar account with just a few clicks.
Altitude is built entirely on the Squads Protocol, providing around-the-clock dollar liquidity, competitive yields, and code-enforced security, supporting ACH, wire transfers, SEPA, and stablecoin transfers, as well as asset trading and invoice tracking functionalities.
Squads has received strategic investment from Haun Ventures to accelerate the expansion of Altitude and promote the application of stablecoins in existing and future products, continuing to build a stablecoin-native operating system that serves as an alternative to traditional banking infrastructure.
Altitude will provide stablecoin-native financial infrastructure directly to global enterprise users, breaking the limitations of traditional bank accounts and creating a new financial stack foundation for the free movement of value, representing a substantial expansion of blockchain stablecoin financial services from the crypto field to mainstream enterprise markets.
👀 The Global Dollar Network, a stablecoin alliance, adds 19 new members, including Zodia Custody.
👀 Ondo Finance partners with TruBit Global to introduce the $USDY stablecoin into the Latin American market.
👀 Tether launches fee-free USDT transfers and partners with multiple platforms.
