- Supply of dollar-pegged tokens smashes record.
- Regulatory clarity key catalyst for upside.
There are more stablecoins than ever.
Dollar-pegged cryptocurrencies surged to a fresh record on Friday, further cementing their role at the intersection of crypto and traditional finance.
The total value of stablecoins in circulation hit $282.83 billion, the highest ever, according to DefiLlama data.
That’s a 128% increase since the start of the year, fuelled by swelling demand for dollar-pegged tokens amid regulatory tailwinds.
The only question that remains is how much higher.
The industry’s growth is “hard to guess but clearly many big, skilled players want to move fast,” Garett Jones, chief economist at ratings agency Bluechip, told DL News.
“A trillion in stables by January 2029 is a plausible guess with a reasonable range from half a trillion to two trillion.”
‘Distribution channel’ for dollars
The new milestone comes one month after US President Donald Trump signed the Genius Act into law, which aims to regulate the stablecoin industry at the federal level.
Stablecoins are a type of cryptocurrency designed to maintain a constant value via a 1:1 peg with the U.S. dollar. They are commonly used by crypto traders to move funds between tokens.
They also serve as “global distribution channels for US dollars,” Kevin Lehtiniitty, CEO of stablecoin issuer Borderless.xyz, told DL News.
Lehtiniitty argues that government policy, not demand, will determine the pace of growth.
“Stablecoin market caps can easily 5-10x in the near term on the back of cross-border payments, on-chain capital markets, and tokenised cash-equivalents. The gating factor isn’t user demand but rather the regulatory posture across Treasury, the Fed, and Congress,” he said.
With the Genius Act providing clarity, stablecoin adoption is expected to accelerate further.
“The GENIUS Act provides the fast-growing stablecoin market with the regulatory clarity it needs to grow into a multitrillion-dollar industry,” US Treasury Secretary Scott Bessent said in July.
Crypto market movers
- Bitcoin is down 2.9% over the past 24 hours to trade at $109,695.
- Ethereum is down 5.7% to trade at $4,331.
What we’re reading
- UK falling behind on crypto laws to push consumers to unregulated offshore providers, warns MP — DL News
- As he builds US power, Justin Sun fights to control his story — Citation Needed
- Over $500 Million Liquidated as Crypto Selloff Accelerates — Unchained
- Bullish IPO makes history — Milk Road
- Ethereum to $7,500? Rotation into Ether ETFs seen to drive price to new heights — DL News
- Bullish Settles $1.15B IPO Entirely in Stablecoins — Unchained
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
