In the Big Ideas 2025 report by ARK, we provide investors with deep insights into the crypto asset space, including stablecoins. Since January of this year, the supply of stablecoins has surged by 20% to $247 billion, surpassing 1% of the M2 money supply in the United States. Tether and Circle continue to dominate the market with $150 billion and $61 billion, respectively, holding a combined market share of over 85%.

We believe that stablecoins could become one of the most important strategic assets for the U.S. government in the next 5-10 years. Why? The foreign ownership of U.S. Treasury bonds has dramatically decreased over the past 15 years, and this trend is likely to continue due to evolving geopolitical pressures. At the same time, the U.S. Federal Reserve is unlikely to increase its purchases of U.S. Treasury bonds as it continues to pursue a policy of quantitative tightening.

We believe that the stablecoin market will witness exponential growth, with supply expected to grow 5-10 times in the next five years. This expansion could drive demand for U.S. Treasury bonds to levels previously supported by sovereign nations. Furthermore, stablecoins are reaching areas and populations underserved by traditional banking systems, compensating for the current wave of de-dollarization.