Profits, Policy, and Platform Wars

The stablecoin ecosystem continues to achieve extraordinary milestones as Tether generated $10 billion in profits while Circle's USDC overtook USDT in on-chain activity. 

Key Highlights

• Tether Earns $10B in 2025, Becomes 17th Largest Holder of U.S. Treasuries: Tether generated $10 billion in profits during 2025 while becoming the 17th largest holder of U.S. Treasury securities, demonstrating stablecoin issuers' extraordinary profitability and systemic financial importance.

• Circle's USDC Overtakes Tether's USDT in Onchain Activity: Circle's USDC has surpassed Tether's USDT in on-chain activity, as regulatory compliance drives institutional adoption, according to a JPMorgan analysis, marking a potential shift in stablecoin market leadership dynamics.

Market Leadership and Corporate Strategy

Tether's $10 billion profitability achievement while becoming the 17th largest U.S. Treasury holder demonstrates stablecoin issuers' extraordinary revenue generation. Comparatively this puts Tether among sovereign wealth funds and major financial institutions in Treasury markets. That’s some seriously systemic significance (pardon the alliteration, sometimes I can’t help it). 

JPMorgan's analysis revealed that Circle's USDC is overtaking Tether's USDT in on-chain activity, as regulatory compliance drives institutional adoption, marking potential shifts in market leadership. Until we start seeing the GENIUS-compliant Tether dollar get the volume they’re hoping for, USDC will continue to lead as the preferred stablecoin for regulated financial institutions.

Circle CEO Jeremy Allaire describes Circle’s new blockchain Arc as "an economic OS for the internet". Meanwhile, Circle co-founder Sean Neville is eyeing banking infrastructure for AI actors; it’s clear there’s a strategic vision beyond traditional stablecoin applications for agentic commerce. Ripple's RLUSD approached $900 million market capitalization in under one year, and even managed to get the stablecoin designated for humanitarian aid deployment.

Mastercard exceeded profit estimates as the CEO emphasized AI and stablecoin strategic focus, while BNB Chain surpassed TRON in stablecoin activity and DEX market share. Ethereum maintained dominance as a stablecoin hub amid record on-chain activity, validating the network's infrastructure advantages. 

JPMorgan CEO Jamie Dimon's evolution from calling Bitcoin a "pet rock" to declaring crypto and stablecoins "real" represents significant validation from Wall Street. (I can’t help but chuckle seeing him finally come around). Stablecoin infrastructure firm Hercle confirmed $60 million cash infusions, while Virtune launched Europe's first stablecoin index ETP. Stablecoin card spending quadrupled as crypto integration accelerated across payment systems.

Banking Integration and Payment Infrastructure

It’s no secret that stablecoins enable the tokenization of real-world assets, creating financial infrastructure that connects traditional assets with blockchain networks. BitRail expanded merchant networks and payment options for branded stablecoins and digital wallets, while Revolut rolled out 1:1 USD-to-stablecoin swaps, as fintechs increasingly find ways to integrate crypto into their platforms. 

Alchemy Pay added Falcon Finance's $FF and $USDf to fiat on-ramps, expanding user access to yield-bearing stablecoin products. Western Union filed 'WUUSD' trademarks following Solana stablecoin reveals, and Ant's chairman promoted tokenized money for settlement despite remaining silent on specific stablecoin plans.

Metallicus partnered with InvestiFi, bringing stablecoin capabilities directly into credit union and community bank applications.Worldline partnered with Fipto, supporting digital payment rails through stablecoin solutions. And what do we have here? Another BVNK headline! Equals Money and BVNK focused on the role of USDC as a global B2B payment infrastructure. 

Hong Kong positioned itself as a stablecoin bridge for mainland Chinese firms, according to fintech unicorns, while Germany's Atrya raised €1.5 million, building Europe's first fully compliant stablecoin payment network. Ripple President Monica Long outlined XRP Ledger's next phase, including lending protocols and stablecoin expansion. 

New York judges granted relief to Multichain liquidators, extending freezes on stolen USDC and demonstrating legal system adaptation to digital asset recovery requirements. This sort of thing is necessary for anyone to have confidence in the new financial system that even Trump says is
“the greatest revolution in finance since the internet”. 

Regional Expansion and Regulatory Framework

FASB voted to tackle stablecoin accounting standards, while global regulators reviewed crypto banking rules amid a stablecoin surge. Some experts also warned that stablecoin "rewards" pose financial stability risks, while analysis emphasized that central banks need modern supervision tools for the stablecoin era. This debate between banks + their regulators and the current cryptocurrency company incumbents will be intensifying throughout the rest of this year and into 2026, stay tuned.

Frax launched FraxNet as an all-in-one money account for stablecoins, while IQ and Frax introduced KRWQ as the first Korean won stablecoin on Base Network. Some experts are calling for INR-backed stablecoins, emphasizing India's need for a domestic digital currency infrastructure.

Regional sovereign initiatives accelerated dramatically. Indonesia launched CBDC-backed stablecoins, while Japan introduced its first yen-backed stablecoin, JPYC, entering the global competition. Deutsche Bank's EURAU stablecoin launched across six blockchains, demonstrating the European banking sector's commitment.

Latin American expansion intensified with Venezuela planning the integration of Bitcoin and stablecoin into its national banking system, while Argentine exchange Ripio launched digital pesos as part of regional stablecoin rollouts. And Canadian stablecoin minting efforts have been pushed forward amid growing calls for regulatory reform.

Stay tuned for next week's issue as we continue tracking this transformative landscape.

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