Major Banks and Fintechs Race to Launch Stablecoins, Challenging Tether and Circle
Several major financial institutions are gearing up to launch their own stablecoins as they eye the lucrative cross-border payments market.
Companies like Bank of America, Stripe, Revolut, and Standard Chartered are looking to enter the space, aiming to challenge the dominance of Tether and Circle, the current leaders in the stablecoin sector.
This surge in stablecoin interest marks a notable shift from past skepticism. Once considered risky and speculative, stablecoins are now seen as integral to modern finance, especially as regulations around cryptocurrencies tighten. The rise of stablecoins is further supported by government moves, such as the Trump administration’s crypto-friendly stance.
In what some describe as a “gold rush,” many firms are scrambling to secure a position before stablecoin regulations are fully implemented. These digital assets promise instant, low-cost transactions, especially useful in regions with unstable currencies, offering businesses a faster and cheaper alternative to traditional payment methods.
The stablecoin market’s growth is undeniable. Tether leads with $142 billion in circulation, followed by Circle’s USDC with $57 billion. Last month, stablecoin transaction volumes reached $710 billion, a significant increase from $521 billion in the previous year.
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However, newer players face steep competition from established giants. While PayPal’s PYUSD is a newcomer in the market, it is still far behind Tether in transaction volume. This shows that breaking into the stablecoin market is no easy feat, especially as adoption in Western economies remains uncertain.
To strengthen their positions, companies like Stripe are making significant investments, such as acquiring the stablecoin platform Bridge for $1.1 billion. Meanwhile, Standard Chartered plans to launch a Hong Kong dollar-backed stablecoin, and PayPal continues to expand its PYUSD offerings.
As regulations evolve, clearer guidelines are emerging. In the U.S., legislators are debating bills that could standardize stablecoin regulations, providing more clarity and boosting business confidence. Similar regulatory updates are expected from Europe, with the UK planning to release new compliance rules soon.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
