Financial giants are flocking to issue stablecoins, and the duopoly of Tether and Circle will be broken

Market Overview: The stablecoin market is booming, with $16 trillion in transactions processed in 2024 and a total market value reaching $238 billion. Traditional financial institutions are increasingly entering this space, challenging the dominance of Tether (USDT) and Circle (USDC), which currently hold 85% of the market share.
Fidelity's Entry: Fidelity Digital Assets, managing $5 trillion in assets, has begun stablecoin R&D testing, signaling mainstream asset management's recognition of the market's potential. This move aligns with ongoing U.S. regulatory discussions that could further boost the sector.
PayPal's PYUSD: Launched in 2023, PayPal's stablecoin PYUSD is integrated into its platform, allowing users to buy, transfer, or use it like regular PayPal balances. Its market value stands at $791 million.
Robinhood's USDG: Partnering with Kraken and Galaxy Digital, Robinhood launched USDG, a stablecoin running on the "Global Dollar Network" that offers holder returns. Its market value grew from $29 million to $166 million in 2024.
Ripple's RLUSD: Introduced in December 2023, RLUSD aims to provide stability and liquidity to Ripple's ecosystem. Its market value is $176 million, a fraction of XRP's $140 billion.
World Liberty Financial's USD1: Backed by short-term U.S. Treasury bonds and cash equivalents, this stablecoin from Trump-linked DeFi platform World Liberty Financial will debut on Ethereum and BNB chains.
Standard Chartered's HKD Stablecoin: The bank is developing a Hong Kong dollar-pegged stablecoin in collaboration with Animoca Brands and HKT, though it hasn't launched yet.
Future Growth: Bernstein analysts predict the stablecoin market could double in size this year, with the Atlanta Fed highlighting its growing role in global payments. Regulatory clarity and technical standards may drive further expansion.

Original article: Pedro Solimano , DLNews

Compiled by: Yuliya, PANews

Traditional financial institutions continue to pour into the $238 billion stablecoin market, accelerating the restructuring of the industry's competitive landscape. Fidelity Digital Assets recently joined this track, marking a substantial layout of mainstream asset management institutions in this field. The following are the strategic dynamics and product progress of the current major market players:

Fidelity

According to people familiar with the matter, Fidelity Digital Assets, the crypto business unit of Fidelity Investments, has started stablecoin research and development testing. The institution manages $5 trillion in assets, and its entry into the market verifies the recognition of the stablecoin market by traditional asset management giants. This move comes at a time when the U.S. Senate is deliberating on a landmark regulatory bill, and policy breakthroughs may further activate market potential.

PayPal

PayPal launched its stablecoin PYUSD in 2023, taking the lead in integrating stablecoins into its platform. Users can buy, transfer or use PYUSD through the company's app or website, just like using a regular PayPal balance. The stablecoin currently has a market value of $791 million.

Robinhood

Thanks to the rapid growth of crypto asset trading, Robinhood achieved profitability in the fourth quarter, with cryptocurrency sales increasing by 700%. In November 2024, Robinhood partnered with cryptocurrency exchange Kraken and research firm Galaxy Digital to launch a stablecoin called USDG, which runs on the "Global Dollar Network" and provides returns to holders. Its market value has grown rapidly from $29 million at the beginning of the year to $166 million.

Ripple

Ripple launched its stablecoin RLUSD in December last year. Ripple, which has long used XRP for cross-border payments, plans to use this new currency to "provide stability and liquidity to its ecosystem." Ripple CEO Brad Garlinghouse said at the launch of RLUSD that as U.S. regulation becomes clearer, stablecoins like RLUSD are expected to gain wider adoption. The market value of the stablecoin has grown to $176 million, just a fraction of XRP's $140 billion market value.

World Liberty Financial

Trump's cryptocurrency empire has also set its sights on the stablecoin field. On March 25, World Liberty Financial, a DeFi platform under his family, released details of its stablecoin USD1. The stablecoin will be backed by short-term U.S. Treasury bonds, U.S. dollar deposits and other cash equivalents, and will initially be issued on the Ethereum and BNB chains.

Standard Chartered Bank

Standard Chartered, a British bank with a deep presence in Asia, is developing a stablecoin pegged to the Hong Kong dollar. In February, the bank announced that it was working with Hong Kong Web3 company Animoca Brands and telecommunications provider HKT to develop the stablecoin. The stablecoin has not yet been officially launched on the market.

The scale may double within this year

Market data shows that stablecoins will process $16 trillion in transactions in 2024, with a total market value of $238 billion. Although Tether (USDT) and Circle (USDC) still account for 85% of the market share, Bernstein analysts predict that the market size will double this year. In addition, a special report by researchers at the Atlanta Federal Reserve pointed out that such digital tools are playing an increasingly important infrastructure role in the trillion-dollar payment system. With the improvement of the regulatory framework and the establishment of technical standards, the stablecoin market may usher in a new round of explosive growth.