Stablecoin Race Latest News: USDT Market Cap Surpasses $150 Billion for the First Time, Tether and Circle Strengthen Their Moats

Original Title: "Latest Developments in the Stablecoin Race: USDT Market Cap Exceeds $150 Billion for the First Time, Tether and Circle Strengthen Their Moats"

Original Author: Weilin, PANews

On May 13, according to defillama data, the stablecoin market cap reached $2,428.21 billion. Tether's USDT market cap exceeded $150 billion for the first time, reaching $150.663 billion, with a market share of 62%. Following closely behind is Circle's USDC, accounting for nearly 25% of the stablecoin market. In recent months, there have been continuous developments in the cryptocurrency market regarding stablecoins, such as Tether's plan to launch a new US dollar-backed stablecoin in the US later this year in response to changes in the US regulatory environment. Circle submitted a public offering registration application to the US Securities and Exchange Commission (SEC) on April 1, planning to go public.

Meanwhile, tech giants with fintech DNA such as Stripe and PayPal are actively entering the scene. Combined with financial companies like BlackRock and traditional banks (such as Bank of America and Standard Chartered Bank) and yield-bearing stablecoin projects, these companies are poised to challenge Tether and Circle's duopoly, bringing more innovation to the stablecoin market and promoting mass adoption. Stablecoins are being used for cross-border payments, DeFi protocols, and on-chain transactions, and have been referred to by a16z Crypto as the "WhatsApp moment" for the currency field. In this article, PANews has compiled the recent stablecoin development dynamics of major tech and financial companies to provide a panoramic view of the race and showcase the industry impact they bring.

Tech Companies Making Moves in Stablecoin Payments: Stripe, PayPal, Coinbase, etc.

Stripe

On May 7 and 8, Stripe announced the launch of "Stablecoin Financial Accounts," allowing business users in 101 countries to hold account balances in stablecoin form. Additionally, they also released USDB via Bridge, which is a programmable stablecoin that developers can embed into their applications and earn rewards by building the USDB ecosystem.

In February 2025, Stripe completed the acquisition of the stablecoin infrastructure platform Bridge for $1.1 billion, further driving the use of stablecoins in global payments. Bridge supports payment processing for stablecoins like USDC, and Visa recently launched a stablecoin-enabled payment card through Bridge.

PayPal

On April 23, PayPal announced that starting in 2025, U.S. users holding PYUSD in their PayPal or Venmo balance will receive a 3.7% APY. By offering an interest rate, they aim to incentivize users to buy and hold stablecoins on their platform, while also potentially generating more revenue for PayPal through external use of PYUSD. The interest rate is just the first step, and there may be more initiatives in the future to drive PYUSD transaction volume and integration.

Coinbase

On May 6, Coinbase introduced the x402 payment standard, a stablecoin payment standard designed for internet-native payments to enable atomic-level transactions between APIs, applications, and AI agents.

Meta

On May 9, according to Fortune, three years after abandoning the Libra/Diem project, Meta is reportedly in early discussions with multiple crypto firms regarding stablecoin applications, exploring the use of stablecoins for cross-border creator payments to reduce fees. Since January this year, former Plaid executive Ginger Baker has been serving as Meta's VP of Product, leading relevant efforts.

MoneyGram

On May 7, MoneyGram unveiled "MoneyGram Ramps," a cash-in/cash-out channel supporting stablecoins in over 170 countries. Leveraging its global cash network, MoneyGram has provided a new way for stablecoins to interact with everyday spending and expenses.

Traditional Payment Giants Strike Back: Mastercard and Visa

On April 28, Mastercard announced partnerships with Circle, OKX, Paxos, and other exchanges and wallets to launch broader stablecoin integrations, allowing consumers to spend stablecoin balances through their Mastercard cards. Additionally, merchants can settle fiat card payments directly into USDC.

Furthermore, as mentioned earlier, on April 30, Visa announced a collaboration with Bridge, supported by Stripe, enabling fintech developers to issue Visa cards pegged to stablecoins, allowing users to spend their stablecoin balance at fiat acceptance points through the Visa network. These products significantly lower the barrier for users to adopt stablecoins by integrating with existing payment systems. Users no longer need to worry about merchants accepting stablecoin payments; they can simply use their linked Visa or Mastercard to complete transactions.

Leading Players Circle and Tether Solidify Moats, Paxos Launches Stablecoin Alliance

Circle

On April 21, Circle announced a partnership with several global banks and stablecoin startups to launch the Circle Payments Network, aimed at improving international payments. Circle directly challenges SWIFT and traditional bank networks, seeking to replace their inefficient messaging services and payment processes. On April 1, Circle filed for an IPO. Circle submitted an application to list on the New York Stock Exchange, marking further recognition of the legitimacy of stablecoin payments.

Tether

As the stablecoin market expands, on May 13, defillama data showed the stablecoin market cap at $2,428.21 billion. Tether's USDT market cap exceeded $1.5 trillion for the first time, reaching $1,506.63 billion, with a market share of 62%. While USDT continues to grow, other stablecoins are also expanding, leading to USDT's market dominance dropping from 70% to 62% over the past year. To sustain growth, USDT has taken bold measures to enhance cross-chain capabilities, from implementing the multi-chain token USDT 0 supported by LayerZero OFT to building a hub centered around Legacy Hub and Plasma. Through these methods, they are addressing past challenges. Additionally, Tether plans to launch a new USD-backed stablecoin in the US later this year.

Ondo

On April 18, Ondo Finance announced the launch of its USD-backed bond token USDY on the Stellar blockchain. In May, Ondo introduced a cross-chain bridging solution for USDY, enabling seamless transfers between the Ethereum Virtual Machine (EVM) and the Solana ecosystem. This is the first such solution for tokenized RWAs, significantly enhancing USDY's interoperability and global accessibility. On May 12, Ondo Finance announced USDY's landing on the Latin American platform TruBit, supporting access for users from five countries in Mesoamerica.

Paxos

Stablecoin issuer Paxos, in collaboration with Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, and Robinhood, has launched the Global Dollar Network, an open network designed to accelerate global stablecoin usage. On April 14 this year, Visa announced its participation in the Global Dollar Network stablecoin alliance initiated by Paxos. On May 12, the stablecoin alliance Global Dollar Network announced the addition of 19 new members, including cryptocurrency exchange BitMart, crypto custodian Zodia Custody, wallet provider Arculus, and stablecoin payment companies Beam, FOMO Pay, AlfredPay, and Noah, among others.

World Liberty Financial

World Liberty Financial Inc. (WLFI) is the developer of a DeFi protocol and governance platform inspired by former U.S. President Trump. On March 25, the company announced today its plans to launch the USD 1 stablecoin, which will be pegged 1:1 to the U.S. Dollar (USD). The statement indicates that WLFI's USD 1 will be 100% backed by U.S. Treasury bills, USD deposits, and other cash equivalents. Initially, the USD 1 token will be minted on the Ethereum (ETH) and Binance Smart Chain (BSC) blockchains, with future plans to expand to other protocols. Each token is designed to maintain a value of 1 USD.

Ethena

On December 16, 2024, DeFi project Ethena Labs announced the official launch of its new stablecoin, USDtb. As a blockchain-based U.S. Dollar stablecoin, 90% of USDtb's reserve funds are invested in BlackRock's tokenized fund BUIDL, in partnership with leading real-world asset tokenization company Securitize.

As of May 13, according to defillama data, Ethena's synthetic dollar USDe is the third-largest USD-pegged asset in the crypto market, following only USDT and USDC, with a market cap of 47.45 billion USD. On April 12, Ethena Labs introduced the USDe Reserve Proof, which will be updated weekly. As of the snapshot taken on April 26, the USDe token's supply was 4.765 billion, with $44.695 million available in Ethena's mint/redeem contract to meet redemption demands, $60.95 million in the reserve fund, and about $663 million in Copper custody assets.

On April 17, Ethena announced plans to launch the Converge blockchain in the second quarter of this year, focusing on real-world assets (RWA) in partnership with asset tokenization platform Securitize. The mainnet will be built on Arbitrum and Celestia and will support USDe and USDtb token payments for Gas fees, while maintaining security through ENA staking. On May 1, Ethena Labs revealed a partnership with the TON blockchain to integrate its USDe product with Telegram, reaching its one billion users. The collaboration includes integration with non-custodial TON wallets, Telegram's in-app custodial wallets, and TON DeFi applications. On May 5, Ethena Labs also announced that USDe had been launched on Hyperliquid and HyperEVM.

Traditional Bank Entrance into Stablecoin Issuance: Bank of America, Standard Chartered

Bank of America

On May 3, Bank of America stated that it would be willing to issue its own stablecoin if relevant legislation is passed by Congress. Bank of America, the second-largest loaner in the U.S., had its CEO Brian Moynihan previously state, "As long as the law allows, we will enter the stablecoin business."

Standard Chartered

On February 17, Standard Chartered (Hong Kong), Animoca Brands, and HKT announced an agreement to establish a joint venture (JV) and plan to apply for a license from the Hong Kong Monetary Authority (HKMA) to issue a Hong Kong dollar-backed stablecoin.

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