Stablecoin Supply Reaches New Heights

The total stablecoin supply has reached a record-breaking $283.2 billion. Additionally, the number of monthly stablecoin senders just climbed to 25.2 million, the highest ever recorded, according to data from Token Terminal.

So far in 2025, startups working on stablecoin projects have pulled in $621.81 million in funding, which is seven times more than the $84 million raised in all of 2024.

The biggest single deal came from OSL Group, a firm based in Hong Kong that secured $300 million back in July for expanding operations across global markets.

Regulation Drives Funding Surge

Behind this wave of funding is one significant factor: regulation. President Donald Trump signed the GENIUS Act earlier this year, which provides the stablecoin industry the clarity it has long sought. Ron Tarter, CEO of MNEE, described it as a “green light for corporate America, legitimizing the industry.”

Wall Street is responding. The total capitalization of all stablecoins has surpassed $297 billion, marking a new peak. Analysts at Coinbase predict that the market could reach $1 trillion by 2028.

In June, Circle, the firm behind USDC, held its initial public offering and raised $1 billion. Its shares are currently trading at $144. Combined with fundraising by Figure Technologies and other focused entities, total investment in the space has exceeded $2.4 billion this year.

Traditional finance isn’t idle; payments giant Stripe is developing its own stablecoin, along with Citigroup, Wells Fargo, and Bank of America. Societe Generale launched USDCV, while JPMorgan confirmed the release of its JPMD coin built on the Base blockchain.

Conflicts with Traditional Banking

Not everyone is pleased. Banking lobby groups are raising concerns, arguing that the GENIUS Act places banks at a disadvantage by allowing stablecoin firms to offer interest-like perks that banks cannot without additional regulations. This difference could potentially siphon off over $6 trillion from traditional bank deposits.

Coinbase is pushing back; policy chief Faryar Shirzad argues that banks wish to protect their $187 billion annual revenue from transaction fees. Brian Armstrong, CEO of Coinbase, expressed his frustration with banks trying to prevent competition in crypto. He stated, “They should have to compete on a level playing field in crypto.”

Currently, Coinbase offers 4.1% on USDC holdings, while Kraken offers 5.5%, significantly above what banks provide for savings.

On Monday, the Plasma blockchain project, backed by Bitfinex, unveiled Plasma One, a neobank designed specifically for stablecoin usage. The app promotes zero-fee USDT transfers, card payments with rewards, and near-instant issuance of virtual cards, initially targeting regions with limited access to U.S. dollars.

Despite the progress, challenges remain. Murat Firat, Head of Product at Plasma, emphasizes that improving user interface and overall experience is essential for driving daily adoption.

In July, analysts at Standard Chartered noted increased client interest in stablecoins compared to Bitcoin. JPMorgan analysts expressed concern that the influx of new tokens may lead to intense competition among issuers.