This Week Summary on Stablecoin News:
- Solana overtakes BSC in stablecoin market cap, as users rotate altcoins into stable assets.
- U.S. lawmakers are negotiating whether stablecoin issuers should be allowed to pay interest to holders.
- Tether warns new U.S. tariffs may weaken global dollar adoption—and threaten stablecoin expansion.
- The STABLE Act may open doors for Big Tech to enter banking via stablecoin issuance.
- Circle officially files for a U.S. IPO under 'CRCL,' reporting solid 2024 earnings.
Stablecoin Overview: On-Chain Analytics
Stablecoin markets continue to grow even amid broader risk-off sentiment across crypto. As of April 7, 2025, the total stablecoin market cap sits at $232.69B, with a slight week-over-week increase of +$13.87M. Notably, recent USD inflows remain subdued or even negative—most recently showing an outflow of –$0.50B on April 6—suggesting that growth is not coming from new fiat capital. Instead, users appear to be reallocating existing crypto holdings from volatile assets like altcoins or Bitcoin into stablecoins, signaling a defensive posture without exiting the ecosystem.
Ethereum maintains its leadership in stablecoin dominance with $124.08B on-chain, or 53.33% of total market share. Tron follows with $66.64B, while Solana has overtaken BSC to become the third-largest chain for stablecoins, now hosting $12.4B compared to BSC’s $7.06B. This is a meaningful shift from January, when BSC still held the #3 spot. The move reflects Solana’s rising momentum as a fast, low-cost settlement layer, increasingly favored for stablecoin deployment amid its broader ecosystem growth.
U.S. Lawmakers Debate Interest Payments on Stablecoins
Lawmakers on Capitol Hill are considering whether stablecoin issuers should be permitted to pay interest to holders—potentially transforming the role of stablecoins in the broader financial system. Crypto executives argue that interest-bearing stablecoins would more closely resemble traditional bank accounts, making them more attractive to mainstream users. However, the current House draft of the bill explicitly prohibits this, while the Senate version leaves room for interpretation. Crypto advocates are lobbying for the inclusion of interest payments in the final legislation as a consumer benefit and innovation enabler.
The debate is also fueling tensions with the traditional banking sector. The American Bankers Association warns that interest-bearing stablecoins could undermine the deposit base of regulated banks, threatening financial stability. As bipartisan negotiations continue, the White House is reportedly aiming to have a stablecoin bill passed by August 2025. Whether interest payments are included could define how deeply stablecoins integrate with mainstream financial infrastructure.
Tether Sees Dollar-Backed Stablecoins at Risk Amid Tariff Tensions
Tether, the issuer behind the $106B+ USDT stablecoin, has sounded alarms over recent U.S. tariff policies and their unintended effects on dollar adoption. In 2024, Tether earned a staggering $13B—surpassing even Goldman Sachs—but its CEO Paolo Ardoino warns that rising U.S. protectionism may weaken global confidence in the dollar. With countries like China and Russia exploring gold-backed stablecoins and alternative reserve assets, Tether sees geopolitical headwinds as a risk to the digital dollar's dominance.
Tether is urging U.S. policymakers to recognize the strategic value of dollar-denominated stablecoins in maintaining financial leadership on the global stage. In emerging markets with limited access to U.S. banking, USDT often functions as a de facto savings tool and dollar replacement. Yet if the U.S. undermines its own currency through trade barriers, that reliance could shift quickly. Tether's message is clear: dollar-backed stablecoins are only as strong as the trust in the dollar itself.
Big Tech Could Enter Banking Through Stablecoin Loophole
The STABLE Act has cleared the House Financial Services Committee and seeks to establish a regulatory framework for U.S. dollar-backed stablecoins. However, analysts warn that the legislation could unintentionally create a pathway for Big Tech companies like Meta, Amazon, and X (formerly Twitter) to issue stablecoins via financial subsidiaries. These firms could thereby gain access to core financial infrastructure, blurring the lines between commerce and banking—an outcome critics argue could entrench tech monopolies and erode consumer protections.
While bipartisan support suggests momentum behind the bill, privacy advocates and smaller financial players are calling for safeguards to prevent non-financial corporations from leveraging stablecoins as a backdoor into banking. Though proposed amendments aimed to restrict commercial entities from owning stablecoin-issuing banks, they were removed from the current draft. As a result, the bill may empower tech conglomerates to reshape financial services under the guise of digital asset innovation.
Circle Files for IPO Under Ticker CRCL
Circle, the issuer of USDC, has formally filed for an initial public offering (IPO) on the New York Stock Exchange under the ticker symbol "CRCL." The company reported a net income of $155.7 million in 2024 and total revenues of $1.68 billion, demonstrating a strong financial foundation despite challenging macro conditions. This move follows a canceled SPAC deal in 2022 and signals renewed confidence in the regulatory clarity and investor appetite for compliant stablecoin issuers.
Circle's IPO could become a bellwether for the broader stablecoin ecosystem, especially as U.S. regulations take shape. If successful, the listing may further legitimize USDC as a transparent and institutionally trusted stablecoin, offering a counterweight to Tether's more opaque model. With increased public scrutiny and SEC oversight, Circle will likely use the listing to double down on its U.S.-first, regulated approach to stablecoin issuance.
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This Weekly Summary is prepared by brava.xyz.
About Brava:
Brava is an automated stablecoin yield management platform designed to simplify access to yield opportunities in decentralized finance (DeFi). By leveraging risk-adjusted strategies and automation, Brava empowers users to optimize their yield strategies while maintaining full control of their assets.
Disclaimer: Brava does not provide financial advice or guarantee investment performance. Users should assess their own financial circumstances and risk tolerance before using the platform. Brava operates in compliance with applicable regulations and does not manage or hold client funds. Users remain in control of their assets at all times.
Citations:
https://defillama.com/stablecoins
https://time.com/7274507/stablecoin-legislation-genius-act-musk
