The total market capitalization of stablecoins has reached an impressive $240 billion, inching closer to its previous all-time high.
Recent figures from DeFiLlama reveal that over $5 billion in new stablecoin supply was introduced in just the past week, resulting in a 2.18% increase over a seven-day period and a 2.62% rise over the previous month.
Source: DeFiLlama
Tether (USDT) maintains its stronghold in this market, commanding a market share of 61.92%. Other notable competitors include USD Coin (USDC), Ethena USDe (USDe), and Dai (DAI).
Citi has issued a report forecasting substantial growth for the stablecoin sector, projecting that the market could reach an astonishing $2 trillion by 2030, contingent on favorable regulatory advancements.
Citigroup anticipates the stablecoin market cap could skyrocket from $240 billion to $2 trillion by 2030, given the right regulatory environment. #Stablecoin #Citigroup https://t.co/tGNT3XfNC0
— Finance Newso.com (@Finance Newso) April 25, 2025
Under Citi’s baseline scenario, the stablecoin supply is expected to climb to $1.6 trillion, while their optimistic forecast suggests it could go as high as $3.7 trillion. Conversely, the report warns that, in the absence of clearer regulations, the market may stagnate at approximately $500 billion.
This growth is further supported by a remarkable 53% year-on-year increase in active stablecoin wallets, which surged from 19.6 million in February 2024 to 30 million by February 2025.
Additionally, the overall supply of stablecoins jumped from $138 billion to $225 billion during the same period, representing a robust 63% increase.
With growing institutional adoption, integration within decentralized finance (DeFi) frameworks, and widespread use in global payment systems, stablecoins have become essential to the digital economy.
Even Federal Reserve Governor Christopher Waller has recognized their importance, stating that U.S. dollar-backed stablecoins could reinforce the dollar’s position as the leading global currency.
Federal Reserve Governor Christopher Waller highlighted the potential of stablecoins in enhancing the reach of the U.S. dollar. #Fed #Stablecoin https://t.co/nC0CRpmz4B
— Finance Newso.com (@Finance Newso) February 13, 2025
Mastercard and the Race for Mainstream Adoption
Mainstream adoption is being propelled by stablecoin integration, particularly in the payments sector.
Mastercard has recently rolled out its “360-degree” approach to accepting stablecoins, allowing 150 million merchants to process payments in digital currencies.
Mastercard has partnered with Nuvei, Circle, and Paxos to create a seamless stablecoin payment ecosystem. #Mastercard #Stablecoin #OKXCard https://t.co/VyzaH9fRyY
— Finance Newso.com (@Finance Newso) April 29, 2025
By collaborating with payment processor Nuvei and stablecoin issuers Circle and Paxos, Mastercard has positioned stablecoins as a credible solution for facilitating smooth global payments.
The comprehensive strategy includes wallet support, card issuance, on-chain remittances, and real-time settlements for merchants.
In addition, Mastercard has introduced the OKX Card in collaboration with the crypto exchange OKX to further facilitate stablecoin spending.
Stripe, another major player in the payment industry, is also developing its own USD stablecoin, aimed at expanding its services to markets beyond the U.S., UK, and Europe.
@stripe is creating a USD-backed stablecoin designed for businesses operating outside the U.S., UK, and Europe. #Stripe #Stablecoin https://t.co/GJC0NTqA6X
— Finance Newso.com (@Finance Newso) April 26, 2025
Concurrently, the U.S. legislative landscape is evolving to support this growth. The bipartisan GENIUS Act seeks to establish a clear regulatory environment for stablecoins, promoting their acceptance among traditional financial institutions.
According to Standard Chartered, this regulatory clarity could propel the stablecoin market to $2 trillion within just three years, impacting not only the cryptocurrency sector but also U.S. Treasury demand and the global supremacy of the dollar.
Geopolitical Expansion: UAE and Russia Join the Fray
While the West lays the groundwork for a regulated future in stablecoins, other regions are rapidly advancing their digital currency agendas.
Abu Dhabi is emerging as a pivotal player in stablecoin innovation, with three significant entities—ADQ, International Holding Company (IHC), and First Abu Dhabi Bank (FAB)—teaming up to introduce a dirham-backed stablecoin on the locally developed ADI blockchain.
Three leading institutions in Abu Dhabi are set to launch a dirham-backed stablecoin under the oversight of the UAE’s central bank. #AbuDhabi #Stablecoins https://t.co/O70EZA9WqY
— Finance Newso.com (@Finance Newso) April 29, 2025
This initiative aims to serve a variety of purposes, from everyday retail transactions to machine-to-machine and AI-driven payments, and has the backing of the UAE’s central bank.
FAB anticipates issuing the stablecoin upon securing regulatory approval, and the ADI Foundation has touted the blockchain’s capabilities in terms of scalability and transparency.
Meanwhile, in Russia, the concept of a ruble-backed stablecoin gained prominence at the recent Blockchain Forum in Moscow. Sergey Mendeleev, founder of the Exved exchange, outlined seven criteria for what he envisions as a “Tether replica.”
Source: Cointelegraph
Notable among the controversial aspects he suggested were untraceable transactions and transfers exempt from Know Your Customer (KYC) protocols, which would clash with current regulations.
Although Mendeleev praised the overcollateralized DAI model, he expressed doubts about the feasibility of implementing such a product under the existing Russian legal framework.
The landscape for stablecoins is evolving rapidly, with developments spanning from Wall Street to Abu Dhabi and Moscow, as global financial systems gear up for widespread adoption.
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