The global stablecoin market has reached a pivotal moment, with Tether’s USDT surpassing $150 billion in market capitalization for the first time. According to Defillama data on May 13, the total stablecoin market cap now stands at **$242.8 billion**, reflecting strong institutional adoption and innovation across financial and tech sectors.
USDT accounts for 62% of the market, with a valuation of $150.6 billion, while Circle’s USDC holds nearly 25%, solidifying the duopoly in the space. However, increasing competition from fintech innovators, traditional banks, and new entrants is reshaping the landscape—driving interoperability, yield innovation, and real-world asset (RWA) integration.
This article explores the latest developments across major players including Stripe, PayPal, Meta, Mastercard, Visa, Circle, Tether, Ondo, Paxos, and traditional banking giants like Bank of America and Standard Chartered—all racing to capture value in one of crypto’s most strategic sectors.
Tech Giants Enter the Stablecoin Arena
Stripe Launches Programmable Stablecoin USDB
On May 7–8, Stripe unveiled two major initiatives: “Stablecoin Financial Accounts” and USDB, a new programmable stablecoin. Businesses in 101 countries can now hold balances in stablecoins, while developers can embed USDB directly into applications through Stripe's acquisition of Bridge, a stablecoin infrastructure platform purchased for $1.1 billion in February 2025.
USDB is designed to be composable across apps and services, with incentives for developers building its ecosystem. The move positions Stripe as a key enabler of internet-native finance—bridging fiat rails with blockchain efficiency.
👉 Discover how programmable money is transforming digital payments
PayPal Offers 3.7% Yield on PYUSD
Starting in 2025, PayPal will offer a 3.7% annual percentage yield (APY) on PYUSD holdings within PayPal and Venmo wallets for U.S. users. This strategy aims to boost user retention and on-platform usage while expanding PYUSD’s utility beyond peer-to-peer transfers.
By introducing yield—a feature previously dominated by DeFi—PayPal blurs the line between traditional finance and decentralized ecosystems, potentially accelerating mainstream stablecoin adoption.
Coinbase Introduces x402 Payment Standard
On May 6, Coinbase launched x402, a new stablecoin payment standard tailored for internet-native transactions. Designed for seamless integration between APIs, apps, and AI agents, x402 enables atomic settlements—ensuring payments clear instantly without intermediaries.
This protocol could become foundational for machine-to-machine economies, where autonomous AI systems conduct microtransactions using stablecoins.
Meta Explores Stablecoin Payments for Creators
After shelving its Libra/Diem project three years ago, Meta is re-entering the space. According to Fortune, the company is in early talks with crypto firms to explore stablecoin-based cross-border payments for content creators—aiming to reduce fees and settlement times.
Ginger Baker, former Plaid executive and now Meta’s VP of Product, has been leading this initiative since January 2025. While details remain preliminary, Meta’s global reach suggests significant potential impact if it integrates stablecoins into Instagram or Facebook payouts.
MoneyGram Launches Global Stablecoin On-Ramps
On May 7, MoneyGram introduced “MoneyGram Ramps,” a cash-to-stablecoin service available in over 170 countries. Leveraging its vast physical network, MoneyGram allows users to convert cash into stablecoins and vice versa—making digital assets accessible even in underbanked regions.
This integration enhances financial inclusion and provides a critical bridge between legacy cash systems and blockchain economies.
Payment Titans Strike Back: Mastercard & Visa Integrate Stablecoins
Mastercard Partners with Circle and OKX
On April 28, Mastercard announced expanded partnerships with Circle, OKX, and Paxos, enabling consumers to spend stablecoin balances via Mastercard debit or credit cards. Merchants can also receive fiat settlements directly from stablecoin transactions—effectively turning USDC into a spendable currency at any card-accepting outlet.
This integration lowers adoption barriers by allowing users to leverage existing payment infrastructure without requiring merchants to adopt blockchain technology.
Visa Teams Up with Stripe’s Bridge
Two days later, on April 30, Visa revealed a collaboration with Bridge, allowing fintech developers to issue Visa cards linked to stablecoin wallets. Users can spend their USDC or other supported tokens at any merchant accepting Visa—converting crypto to fiat in real time.
These moves by Visa and Mastercard signal a broader trend: instead of launching proprietary stablecoins, they’re embedding them into their networks—accelerating utility while maintaining regulatory compliance.
👉 See how traditional finance is integrating crypto-native tools
Market Leaders Reinforce Their Moats: Circle & Tether
Circle Advances Circle Payments Network
On April 21, Circle launched the Circle Payments Network, partnering with global banks and startups to streamline international transfers. The network aims to replace outdated SWIFT messaging with instant, transparent blockchain settlements—targeting high-cost corridors like remittances.
Additionally, on April 1, Circle filed for an IPO on the New York Stock Exchange—an important step toward legitimizing stablecoins in regulated capital markets.
Tether Expands Cross-Chain Capabilities
With USDT now exceeding $150 billion in market cap, Tether continues to innovate despite declining dominance—from 70% a year ago to 62%. To maintain growth, Tether has rolled out:
- USDT.e (OFT): A multi-chain version powered by LayerZero.
- Legacy Hub & Plasma: Core infrastructure improving cross-chain liquidity routing.
Tether also plans to launch a new USD-backed stablecoin in the U.S. later this year—potentially targeting regulated institutional demand.
Emerging Innovators: Ondo, Paxos, Ethena & More
Ondo Finance Boosts USDY Interoperability
On April 18, Ondo Finance brought its Treasury-backed stablecoin USDY to the Stellar blockchain. By May, they launched a cross-chain bridge between EVM chains and Solana—making USDY the first RWA-backed token with seamless multi-chain functionality.
On May 12, USDY went live on Latin American platform TruBit, serving users in Mexico, Argentina, Brazil, Peru, and Colombia.
Paxos Launches Global Dollar Network
Paxos co-founded the Global Dollar Network, an open consortium aimed at accelerating dollar-pegged stablecoin adoption. Founding members include Kraken, Robinhood, Galaxy Digital, and Anchorage Digital.
As of May 12, the alliance has grown to include 19 new participants—from BitMart to Zodia Custody and payment firms like Beam and AlfredPay. Notably, Visa joined on April 14, signaling institutional confidence.
Ethena Labs Grows USDe to Top 3
Launched in December 2024, Ethena’s synthetic dollar USDe has rapidly grown to become the third-largest USD-pegged asset with a $4.7 billion market cap.
Key innovations include:
- Weekly proof-of-reserves audits.
- Integration with TON blockchain via Telegram (May 1).
- Expansion to Hyperliquid and HyperEVM (May 5).
- Plans for Converge blockchain focused on RWA settlement.
USDe’s reserve is partially backed by BlackRock’s tokenized fund BUIDL through partnership with Securitize—highlighting growing synergy between DeFi and traditional finance.
Traditional Banks Enter the Fray
Bank of America Eyes Stablecoin Issuance
On May 3, Bank of America stated it would launch its own stablecoin if Congress passes enabling legislation. CEO Brian Moynihan emphasized readiness: “We’re prepared to move as soon as regulation allows.”
As the second-largest U.S. lender, its entry could bring massive liquidity and trust to the sector.
Standard Chartered Co-Founds Hong Kong Stablecoin JV
In February, Standard Chartered (Hong Kong) partnered with Animoca Brands and HKT to form a joint venture seeking approval from the Hong Kong Monetary Authority (HKMA) to issue a HKD-pegged stablecoin—positioning Hong Kong as a hub for regulated digital currency innovation.
Frequently Asked Questions (FAQ)
Q: Why is USDT's market cap milestone significant?
A: Surpassing $150 billion underscores growing global reliance on stablecoins for trading, savings, and payments—especially in volatile economies.
Q: How do tech companies benefit from issuing or supporting stablecoins?
A: They increase user engagement, unlock new revenue streams (e.g., transaction fees), and future-proof their platforms against decentralized finance trends.
Q: Are yield-bearing stablecoins safe?
A: Risk varies by issuer. Regulated entities like PayPal offer lower yields but higher trust; others may involve DeFi protocols with smart contract risks.
Q: Can traditional banks compete with crypto-native stablecoins?
A: Yes—banks bring compliance expertise and customer trust. However, they must match the speed and programmability of blockchain-based alternatives.
Q: What role do real-world assets (RWA) play in stablecoins?
A: RWAs like U.S. Treasuries provide transparent backing (e.g., USDY), enhancing credibility and enabling yield generation through off-chain income streams.
Q: Will there be more consolidation among stablecoin issuers?
A: Likely. Regulatory pressure and economies of scale favor dominant players like Circle and Tether—but alliances like Global Dollar Network may promote interoperability over winner-takes-all outcomes.
👉 Learn how the next generation of digital dollars is being built