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Stablecoin Market Capitalization Surpasses $250 Billion Amid Accelerating Regulatory Momentum
The stablecoin market has officially crossed the $250 billion milestone, marking a pivotal moment in the evolution of crypto-finance. Analysts attribute this surge to a combination of regulatory clarity and growing adoption of decentralized finance (DeFi) applications.
“Crossing $250 billion marks a turning point,” said Hank Huang, CEO of Kronos Research. “Stablecoins are no longer experimental, they’re essential.”
According to CoinGecko, the total stablecoin market cap currently stands at $250.3 billion, with $245.5 billion of that backed by U.S. dollar-pegged stablecoins. Among these, Tether’s USDT leads with over $153 billion in market cap, followed by Circle’s USDC at $60.9 billion.
What’s Fueling Stablecoin Growth?
Two primary forces are behind this momentum: regulatory progress and the rapid expansion of DeFi.
The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins Act—recently advanced in the U.S. Senate with backing from President Donald Trump. This legislation aims to provide a clear legal framework for dollar-pegged stablecoins, requiring:
- Full reserves backed by U.S. dollars or highly liquid assets
- Annual audits for issuers with more than $50 billion in market cap
- Oversight and inclusion of foreign issuers
Shortly after, Hong Kong passed its own stablecoin bill on May 21, introducing a licensing regime for fiat-backed stablecoin issuers seeking regional access.
This global regulatory clarity has opened the door for traditional finance (TradFi) institutions to join the stablecoin space. A group involving JPMorgan, Bank of America, CitiGroup, and Wells Fargo is reportedly in discussions to launch a joint stablecoin project.
DeFi’s Role in the Rise of Stablecoins
Meanwhile, the DeFi sector has continued its ascent since 2024, thanks to the growing appeal of DEXs, cross-chain trading, staking, and other applications. According to DefiLlama, DeFi currently holds over $113.17 billion in Total Value Locked (TVL).
Just last month, DEXs captured 25% of all global spot trade volume, a record share compared to centralized exchanges. This is a “clear paradigm shift from centralized to decentralized,” said Hashed CEO Simon Kim.
What Lies Ahead for Stablecoins?
Looking forward, Kronos Research CEO Huang believes the stablecoin market could double in size by 2026. The issuer landscape may soon expand beyond USDT and USDC, making room for Trump-aligned USD1 and potential bank-issued tokens.
The path ahead is shaping up to be one of innovation, mainstream integration, and regulatory legitimacy, setting the stage for stablecoins to play a foundational role in the next chapter of the global financial system.
@ Newshounds News™
Source: The Block
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What Happens If BRICS Currency Succeeds?
The BRICS alliance is preparing to launch a new currency in an effort to shift away from the US dollar-dominated financial system. As emerging economies adopt a more self-first stance—much like Trump’s “America First” policy—they are placing their own currencies and economic priorities ahead of global dependency on Western financial structures.
These nations are growing increasingly skeptical of the recklessness of US foreign policy, and a successful BRICS currency could become the ultimate act of economic self-determination.
Here’s What Will Happen If BRICS Currency Becomes a Success
If a BRICS-backed currency launches and gains global acceptance, the financial world we know today could be relegated to history. While the US dollar would not go down without a fight, a coordinated effort by developing nations to abandon it could leave the White House and the Federal Reserve with few options—either comply with a new economic order or risk global irrelevance.
A multipolar world would likely emerge, led by an alternative financial ecosystem distinct from the IMF, SWIFT, and other Western-controlled institutions. Countries historically sanctioned by the US could find new lifelines in trade, leading to economic revival and political realignment.
Consequences for the US Dollar
Should the BRICS currency succeed, the US dollar would weaken, particularly in the foreign exchange (forex) markets. A weaker USD would likely fuel domestic inflation, as the Federal Reserve struggles to export demand for the dollar abroad. Moreover, the US government’s leverage to impose economic sanctions would diminish dramatically, eroding its global influence over trade and finance.
In essence, the rise of a BRICS currency would signal the decline of dollar hegemony and the beginning of a new era in global economics.
@ Newshounds News™
Source: Watcher.Guru
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