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

We believe stablecoins could become one of the most important strategic assets for the U.S. government in the next 5-10 years. Why? The foreign holdings of U.S. Treasuries have decreased significantly 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. Treasuries as it continues to pursue a policy of quantitative tightening.

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