This Week Summary on Stablecoin News:
- MoonPay acquired Iron to enable businesses to accept stablecoin payments and enhance cross-border transaction efficiency.
- The U.S. Senate passed the GENIUS Act, creating a regulatory framework for stablecoin issuers to register with state or federal authorities.
- Rising stablecoin supply suggests renewed investor optimism and potential upward momentum in the crypto market.
- Stablecoins saw a $4.23B increase as investors sought stability during broader crypto market declines.
- Bitcoin and stablecoins are emerging as alternatives to the USD in global trade, especially in sanctioned markets.
MoonPay Expands with Iron Stablecoin Acquisition
MoonPay, a leading crypto payments company, has strengthened its position in the enterprise market with the acquisition of Iron, a stablecoin infrastructure startup. This move positions MoonPay to offer businesses the ability to accept stablecoin payments, enabling faster, lower-cost, and borderless transactions. MoonPay CEO Ivan Soto-Wright compared the acquisition to PayPal’s purchase of Braintree, highlighting its potential to transform the payment landscape. Iron’s API-based technology will allow MoonPay to integrate stablecoin payments into existing financial systems, bridging the gap between traditional banking and the digital asset economy.
The acquisition reflects MoonPay's strategic ambition to compete with major payment processors like Stripe, which recently acquired Bridge Network for $1.1 billion. MoonPay’s expanding footprint underscores growing demand for stablecoin-based financial infrastructure, as businesses seek more efficient cross-border payment solutions. Soto-Wright emphasized that stablecoins are set to become a key part of the global financial system, predicting that digital currency wallets will become as commonplace as traditional bank accounts. With over 30 million accounts in 180 countries and profitability reported in 2024, MoonPay is well-positioned to lead the charge in enterprise crypto payments.
Senate Advances GENIUS Act for Stablecoin Regulation
The U.S. Senate Banking Committee has taken a major step toward regulating stablecoins at the federal level by passing the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) with an 18-6 vote. The bill establishes a framework for stablecoin issuers to register with either state or federal authorities, ensuring greater oversight and consumer protection. Republican lawmakers, led by Senator Bill Hagerty, argue that the bill introduces "common sense rules" that balance competition and innovation. However, Democrats have raised national security concerns, particularly around foreign-backed stablecoins.
Senator Elizabeth Warren strongly opposed the bill, criticizing its perceived loopholes and suggesting that it could open the door for bad actors to exploit the system. She referenced reports that former President Donald Trump may be linked to a deal with World Liberty Financial, a crypto exchange allegedly involved with illegal activities, raising alarms about regulatory gaps. Despite the tensions, the bill’s bipartisan support signals growing recognition of the need for regulatory clarity in the stablecoin market. The bill now heads to the full Senate for debate, where further amendments and adjustments are expected.
Stablecoin Supply Surges to $219B, Signaling Bull Cycle
The total stablecoin supply in the crypto market has climbed to over $219 billion, indicating that the market is likely in the middle of a bull cycle rather than nearing its peak. Historically, rising stablecoin supply has preceded major market rallies, as stablecoins serve as a gateway for investors to convert fiat currency into digital assets. The current supply exceeds the previous high of $187 billion recorded in April 2022, just before the market entered a bear phase. This trend suggests that increased investor demand could lead to upward momentum in the broader crypto market.
However, the market remains in a correction phase, with Ethereum down more than 50% from its December 2024 peak and Bitcoin experiencing similar declines. Market analysts are watching key support levels, particularly Ethereum’s $1,900 zone, which could signal renewed investor activity. The upcoming Federal Open Market Committee (FOMC) meeting on March 19 is expected to influence market sentiment, with investors awaiting signals on interest rates and broader monetary policy. Despite short-term volatility, some experts predict that the crypto market could still see significant gains, with Ether potentially reaching $6,000 and Bitcoin climbing to $180,000 by year-end.
Stablecoins Gain $4.23B in Two Weeks Amid Market Volatility
Stablecoins have added $4.23 billion to their market cap over the past two weeks, pushing the total to $154.5 billion, even as the broader crypto market struggles. Tether (USDT) and USDC have led the inflows, reflecting increased investor preference for stability amid market volatility. Analysts suggest that the rise in stablecoin supply signals a growing demand for liquidity, with traders seeking to park funds in stable assets while awaiting clearer market direction. The growth highlights the increasing role of stablecoins as both a hedge and a liquidity source within the digital asset ecosystem.
The surge in stablecoin supply comes as Bitcoin and Ethereum face downward pressure, raising questions about future price movements. Despite the broader downturn, stablecoins have maintained consistent growth, underscoring their importance as a stabilizing force in the market. The ability to quickly convert stablecoins into other assets positions them as a critical tool for navigating market uncertainty. With stablecoin usage expanding and new payment infrastructure emerging, the sector’s resilience suggests that stablecoins will remain central to crypto market dynamics in the months ahead.
Rising Bitcoin and Stablecoin Adoption Could Accelerate De-Dollarization
The dominance of the U.S. dollar as the global reserve currency is facing increasing pressure due to geopolitical tensions, economic sanctions, and the rise of Bitcoin and stablecoins. The U.S. accounts for roughly 25% of global GDP, but the dollar dominates nearly 60% of foreign exchange reserves. However, the strategic use of sanctions has pushed countries like Russia to explore alternatives, including Bitcoin and stablecoins, for cross-border trade and financial transactions. Regulatory changes have allowed Russian corporations to use cryptocurrencies, highlighting a shift away from traditional financial systems.
Stablecoins are playing a complex role in this trend. While they offer a way to bypass the dollar, most stablecoins are still pegged to the USD, reinforcing the dollar’s influence in the crypto economy. The global stablecoin market cap now exceeds $233 billion, with USD-backed stablecoins representing 97% of the sector. Some analysts argue that stablecoins could extend U.S. financial dominance, while others believe that central bank digital currencies (CBDCs) could challenge the dominance of both stablecoins and the dollar in global trade. Despite Bitcoin’s growing appeal as a strategic asset, experts believe it remains too volatile to serve as a true reserve currency—at least for now.
This Weekly Summary is prepared by brava.xyz.
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Citations:
https://www.cnbc.com/2025/03/13/moonpay-pushes-further-into-enterprise-with-iron-stablecoin-acquisitionhttps://www.coindesk.com/policy/2025/03/13/u-s-senate-takes-first-big-step-to-advance-stablecoin-bill
https://finance.yahoo.com/news/rising-219b-stablecoin-supply-signals-080607720
https://news.bitcoin.com/stablecoins-thrive-as-crypto-stumbles-a-4-23b-growth-spree-in-2-weeks/
https://cointelegraph.com/news/growth-in-bitcoin-and-stablecoin-adoption-could-accelerate-dedollarization
