Stablecoins become crypto sector’s biggest growth business

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Stablecoins sector growth

Highlights

Tether and Circle lead stablecoin growth, as Weiss Ratings reports increased on-chain usage diverging from declines in other crypto tokens like Bitcoin.
GENIUS Act's proposed reserve and capital requirements are set to reshape competitive dynamics for issuers building stablecoin payments and settlement infrastructure.
Stablecoin adoption accelerates globally with Japan trialing yen stablecoins and the UK using tokenized pounds for interbank transfers, expanding use in institutional and retail finance.

Market growth and regulatory shift

As reported by Weiss Ratings, stablecoins are increasingly emerging as the most significant segment of the cryptocurrency market, diverging from declines in tokens such as Bitcoin. The report highlights that issuers including Tether and Circle lead the market, supported by a broad on-chain footprint that underscores rising use across crypto transactions and holdings.

The expansion is also drawing closer regulatory scrutiny. Proposed reserve and capital requirements under the GENIUS Act are expected to reshape competitive conditions, particularly for companies building out issuance, payments and settlement infrastructure tied to dollar-pegged digital assets.

Major industry groups including Binance and Galaxy are investing heavily in stablecoin infrastructure, signaling that firms across the sector see the asset class as a core revenue and utility driver rather than a niche trading instrument.

Global payments adoption broadens industry impact

Outside the U.S., stablecoins and related tokenized deposits are moving further into mainstream finance. Japan is conducting trials for yen stablecoins, while the UK is carrying out interbank transfers using tokenized pound deposits, pointing to broader experimentation with blockchain-based payment rails.

That trend suggests stablecoins are becoming more important to both institutional and retail users. For institutions, they offer a tool for settlement, liquidity management and digital asset allocation, while for retail users they increasingly serve as a practical medium for transfers, savings and access to crypto markets during periods of volatility.

Our earlier coverage of South Korea’s FX reforms explained how Asian currency markets are opening further to global capital, increasing demand for stronger post-trade infrastructure as cross-border trading grows. We noted that South Korea is liberalizing the won by extending access for offshore participants and pushing settlement modernization, while regional adoption of standardized services is rising to reduce settlement risk and improve liquidity management.

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