The Stablecoin Power Shift

August 3, 2025

This week, the stablecoin ecosystem experienced a fundamental shift in market leadership as TRON overtook Ethereum, while the first federally compliant stablecoin launched under GENIUS Act oversight. 

Key Highlights

• TRON Overtakes Ethereum in Stablecoin Supply: TRON surpassed Ethereum to become the leading stablecoin network by supply volume, with USDT hitting $80.8 billion in supply on the network versus Ethereum’s $73.8 billion. This drove $70 billion in DeFi growth and boosted TRX value on the Nasdaq.

• First GENIUS-Compliant Stablecoin Launches: Anchorage Digital and Ethena Labs announced the launch of the first GENIUS Act-compliant stablecoin under federal oversight, marking a historic milestone in regulated digital dollar infrastructure.

• Tether CEO Confirms US Market Entry: Tether's CEO declared US market entry plans are "well underway" amid development of an institutional stablecoin product, signaling the world's largest stablecoin issuer's strategic pivot toward regulated American markets. A GENIUS compliant Tether dollar is an inevitability. 

Network Leadership Transformation

TRON overtook Ethereum in total stablecoin supply as 70% of USDT shifted to off-chain mechanisms, driving $70 billion in DeFi growth. This shift demonstrates user preference for low-cost, efficient infrastructure over expensive networks. At BVNK, we see huge flows across the TRON network, especially from our international customers. 

The Interledger Protocol targets seamless interoperable stablecoins across blockchain networks, addressing fragmentation that limits institutional adoption. USDC's deployment to Sei through zero-bridge technology exemplifies frictionless cross-chain movement. 

Anchorage Digital and Ethena Labs launched the first GENIUS Act-compliant stablecoin under federal oversight, establishing compliance standards that institutional adopters demanded and potentially triggering broader regulated development.

Corporate Payment Integration

Traditional payment infrastructure rapidly incorporated stablecoin capabilities. Visa accelerated stablecoin integration for cross-border payments, with pilots achieving a $225 million volume, validating the potential to capture market share from correspondent banking.

Western Union announced plans to leverage stablecoins and AI for efficiency improvements, while PayPal expanded PYUSD functionality across over 100 cryptocurrencies. Banking integration accelerated through FIS partnering with Circle for USDC payments with U.S. banks, while Fidelity National Information Services enabled comprehensive USDC transactions. 

Interactive Brokers is considering launching proprietary stablecoins, indicating interest in the brokerage sector (similar to last week’s Charles Schwab news). AllScale launched stablecoin payments via popular social media platforms, demonstrating consumer adoption beyond traditional financial applications.

Yield-Bearing Innovation Explosion

Yield-generating stablecoin products attracted massive capital. Falcon Finance launched transparency dashboards showing 108% over-collateralization backing 12.8% APY on sUSDf tokens while reaching a $1 billion circulating supply. Binance introduced RWUSD, offering 4.2% APR backed by tokenized real-world assets, while USDD 2.0 surpassed $600 million TVL with 20% APY amid GENIUS Act shifts.

And on the Bitcoin front, Stablecoin-focused sidechain Plasma attracted $373 million in oversubscribed token sales, demonstrating institutional appetite for Bitcoin-native infrastructure.

Regional Expansion and Institutional Growth

Geographic expansion continued across diverse markets. Singapore-based DTCpay secured Luxembourg regulatory approval for European expansion, while Zodia Markets raised $18.25 million for international expansion and stablecoin payments. Gold-backed stablecoins debuted as a payment method for African content creators, providing inflation-resistant alternatives. SY Holdings established its headquarters in Singapore for Web3 ecosystem exploration.

Ripple's RLUSD showed strong retail growth, with 122.5 million tokens minted, as DeFi demand boosted the market cap to $577 million. Fourth Paradigm also formed joint ventures to enhance its stablecoin market presence.

Regulatory Landscape Evolution

Global regulatory approaches continue to diverge, with Beijing's Haidian District regulators intensifying their crackdowns on unauthorized stablecoin fundraising, while Hong Kong's monetary authority warned it plans to issue limited licenses with stringent AML requirements.

The European Central Bank argued that dollar stablecoins threaten European monetary autonomy, highlighting sovereignty concerns. However, adoption continues expanding despite regulatory reservations. A7A5 stablecoin supply jumped 240% as Russians sought to bypass sanctions, while JD.Com filed JCOIN trademark applications as Hong Kong regulations tightened.

Industry analysis suggests exponential growth potential. Customer.io's CEO noted "the pie is getting bigger faster" regarding adoption, while Coinbase positioned stablecoins as future AI payment infrastructure.

This week's developments confirm stablecoins' evolution into critical financial infrastructure with network leadership shifts, federal compliance standards, and corporate integration. Stay tuned for next week's issue as we continue tracking this rapidly evolving landscape.

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