The stablecoin landscape is undergoing rapid transformation as major financial institutions, tech giants, and blockchain innovators accelerate their moves in the digital currency race. On May 13, the total market capitalization of stablecoins reached $242.8 billion**, with **Tether’s USDT** crossing a historic threshold—**$150.6 billion in market cap, capturing 62% of the sector. Meanwhile, Circle’s USDC holds nearly 25%, solidifying a duopoly that’s now facing intensified competition from global players.
As regulatory frameworks evolve and adoption expands, stablecoins are no longer just tools for crypto traders. They're becoming foundational infrastructure for cross-border payments, DeFi protocols, real-world asset (RWA) tokenization, and even everyday consumer transactions. With industry leaders like Stripe, PayPal, Mastercard, and traditional banks entering the arena, the race to redefine money has officially begun.
👉 Discover how the world's largest financial networks are integrating stablecoins today.
Tech Giants Enter the Stablecoin Arena: Stripe, PayPal, and More
Stripe: Powering Programmable Money with USDB
On May 7–8, Stripe unveiled its Stablecoin Financial Accounts, enabling businesses in 101 countries to hold balances in stablecoins. This move follows its $1.1 billion acquisition of Bridge in February 2025—a platform that supports USDC and other stablecoin transactions.
Stripe also launched USDB, a programmable stablecoin designed for developers. By embedding USDB into apps, creators can build financial logic directly into software and earn rewards through ecosystem incentives. The integration with Visa further extends reach: users can now spend stablecoins via Visa cards powered by Bridge.
This positions Stripe not just as a payment processor, but as a full-stack financial infrastructure provider—bridging fiat rails with on-chain innovation.
PayPal: Incentivizing Adoption with Yield
Starting in 2025, PayPal will offer a 3.7% annual percentage yield (APY) on PYUSD holdings within PayPal and Venmo accounts. This strategic move aims to boost user retention and encourage on-platform usage of its native stablecoin.
By combining yield incentives with seamless peer-to-peer transfers and merchant payments, PayPal is creating a flywheel: users earn by holding, spend easily, and transact across borders—all within a familiar interface. Expect deeper integrations with DeFi-like features in the future.
Coinbase: Building the Internet’s Native Payment Standard
On May 6, Coinbase introduced x402, a new payment standard designed specifically for internet-native transactions. Unlike traditional payment rails, x402 enables atomic settlements between APIs, applications, and AI agents using stablecoins.
This could be pivotal for the rise of autonomous AI systems that need to transact instantly and securely—imagine an AI booking travel, paying invoices, or managing ad budgets—all without human intervention. x402 lays the technical foundation for this future.
Meta: Re-Entering Crypto Through Creator Payments
After shelving the controversial Libra/Diem project in 2022, Meta is quietly re-entering the stablecoin space. According to Fortune, the company is in early talks with crypto firms about launching a stablecoin to facilitate low-cost cross-border payments for content creators.
With Ginger Baker—former Plaid executive—now leading product strategy at Meta, the social media giant appears serious about leveraging blockchain to improve creator monetization globally.
MoneyGram: Bridging Cash and Crypto
On May 7, MoneyGram launched "MoneyGram Ramps", a cash on/off-ramp supporting stablecoins across 170+ countries. Leveraging its vast physical network of retail locations, MoneyGram is making it easier for unbanked and underbanked populations to access digital dollars.
This hybrid model—combining legacy cash infrastructure with blockchain efficiency—could drive mass adoption in emerging markets where smartphone penetration outpaces banking access.
👉 See how global payment networks are connecting traditional finance with blockchain economies.
Payment Titans Strike Back: Mastercard and Visa Integrate Stablecoins
Mastercard: Broadening Stablecoin Accessibility
On April 28, Mastercard announced partnerships with Circle, OKX, and Paxos, allowing consumers to spend stablecoin balances using their Mastercard debit or credit cards. Merchants can also receive payments in USDC while settling in local fiat—streamlining reconciliation and reducing volatility risk.
This integration removes one of the biggest barriers to adoption: merchant acceptance. Users don’t need to convince stores to accept crypto; they simply use their existing card.
Visa: Enabling Stablecoin-Backed Cards via Bridge
Just two days later, on April 30, Visa teamed up with Stripe’s Bridge to enable fintech developers to issue Visa cards linked to stablecoin wallets. These cards work at any merchant accepting Visa—effectively turning stablecoins into spendable digital cash.
Both initiatives signal a shift: instead of building proprietary blockchains, these legacy giants are choosing interoperability over isolation, accelerating mainstream adoption.
Market Leaders Strengthen Their Moats: Circle and Tether
Circle: Challenging SWIFT with Circle Payments Network
On April 21, Circle launched the Circle Payments Network, a global settlement layer designed to replace outdated systems like SWIFT. Partnering with international banks and fintech startups, Circle aims to enable near-instant, low-cost cross-border transfers using USDC.
This isn’t just an upgrade—it’s a direct challenge to the century-old correspondent banking model.
Additionally, on April 1, Circle filed for an IPO on the New York Stock Exchange, marking a major milestone in the institutional validation of stablecoins. If successful, it would become the first major stablecoin issuer to go public.
Tether: Scaling Across Chains While Preparing a U.S. Launch
Despite seeing its market share dip from 70% to 62% over the past year due to rising competition, Tether remains dominant. Its USDT now exceeds $150 billion in value and continues expanding across blockchains.
To maintain momentum, Tether has introduced:
- USDT.e (OFT version) powered by LayerZero for seamless cross-chain transfers.
- The Legacy Hub and Plasma infrastructure to unify liquidity across networks.
Moreover, Tether plans to launch a new U.S.-regulated dollar-backed stablecoin later this year—likely aimed at addressing long-standing regulatory scrutiny and expanding institutional trust.
Innovation Beyond the Big Two: Ondo, Paxos, Ethena & More
Ondo Finance: Bringing RWA Liquidity to Multiple Chains
On April 18, Ondo Finance launched its Treasury-backed stablecoin USDY on the Stellar blockchain. By May, they introduced a cross-chain bridge allowing USDY to move between EVM chains and Solana—marking the first such solution for tokenized real-world assets.
On May 12, USDY became available on Latin American exchange TruBit, serving users in Mexico, Argentina, Brazil, Peru, and Colombia.
Paxos & The Global Dollar Network Alliance
Paxos co-founded the Global Dollar Network (GDN)—an open consortium including Anchorage Digital, Kraken, Robinhood, and Nuvei—to accelerate stablecoin adoption worldwide. On May 12, GDN added 19 new members, including BitMart and Zodia Custody.
Notably, Visa joined GDN on April 14, signaling growing alignment between traditional finance and decentralized infrastructure.
Ethena: The Rise of Synthetic Dollar Innovation
Launched on December 16, 2024, Ethena’s USDtb uses BlackRock’s tokenized fund BUIDL as 90% of its reserves—partnering with Securitize for compliance and custody.
As of May 13, Ethena’s synthetic dollar USDe ranks third in market cap at $4.74 billion, behind only USDT and USDC.
Recent developments:
- Weekly proof-of-reserves published since April 12.
- Integration with TON blockchain and Telegram’s ecosystem (May 1), unlocking access to over a billion users.
- Launch on Hyperliquid and HyperEVM (May 5).
- Plans for a dedicated RWA chain called Converge, built on Arbitrum and Celestia.
Traditional Banks Join the Race: Bank of America & Standard Chartered
Bank of America
On May 3, Bank of America confirmed it would consider issuing its own stablecoin if Congress passes enabling legislation. CEO Brian Moynihan stated clearly: “We’ll enter the stablecoin business when laws allow.”
Given its size and reach, such a move could dramatically accelerate enterprise adoption.
Standard Chartered
In February, Standard Chartered (Hong Kong), Animoca Brands, and HKT formed a joint venture to apply for regulatory approval to issue a Hong Kong dollar-backed stablecoin—highlighting Asia’s growing role in digital currency innovation.
Frequently Asked Questions (FAQ)
Q: What makes USDT still dominant despite increased competition?
A: Tether’s early mover advantage, extensive multi-chain support, deep liquidity across exchanges and DeFi platforms, and continuous innovation in cross-chain infrastructure keep it ahead.
Q: How do yield-bearing stablecoins like PYUSD work?
A: These stablecoins generate returns by investing reserves in short-term U.S. Treasuries or other secure instruments. A portion of those earnings is passed to users as yield.
Q: Can stablecoins replace traditional banking systems?
A: Not fully yet—but they’re already replacing inefficient parts like cross-border remittances. With faster settlement and lower costs, they’re becoming critical infrastructure.
Q: Are stablecoins safe?
A: Reputable issuers like Circle and Paxos undergo regular audits and maintain full reserves. However, users should always assess transparency reports and regulatory compliance before holding any stablecoin.
Q: Why are big tech companies interested in stablecoins?
A: Stablecoins reduce transaction friction, increase user engagement through yield incentives, and open new revenue streams via embedded finance.
Q: What is the role of real-world assets (RWA) in stablecoins?
A: RWAs like Treasury bonds provide secure backing for stablecoins while generating yield. Projects like Ondo and Ethena are leading this convergence of traditional finance and DeFi.
👉 Explore how next-gen stablecoins are reshaping global finance—start here.