The total market capitalization of stablecoins has surged to nearly $240 billion, setting an important milestone approaching a new all-time high.
According to crypto news on the 29th (local time), data from defillama shows that over $5 billion in new stablecoin supply was issued last week alone, representing a 2.18% increase over 7 days and a 2.62% rise compared to the previous month. In particular, Tether continues to dominate the market with a 61.92% market share, followed by other major players including USD Coin (USDC), Ethena USDe (USDe), and Dai.
Citigroup released a report predicting the explosive growth of the stablecoin market, estimating it could exceed $2 trillion by 2030 if favorable regulatory developments continue. In the base scenario, the bank expects stablecoin supply to reach $1.6 trillion, while an optimistic view anticipates the figure at $3.7 trillion. However, the report also warns that without clear regulation, the market could stagnate at around $500 billion.
This growth is shown by a 53% year-on-year increase in active stablecoin wallets, rising from 19.6 million in February 2024 to 30 million in February 2025. Additionally, the total stablecoin supply increased from $138 billion to $225 billion during the same period, representing a 63% surge.
With increasing institutional adoption, integration on DeFi platforms, and use in global payments, stablecoins have now become fundamental to the digital economy. Even Federal Reserve Board member Christopher Waller acknowledged their importance, suggesting that US dollar-based stablecoins could help maintain the dollar's global dominance.
The key driver of stablecoin adoption has been mainstream integration, particularly in the payment sector. Mastercard recently unveiled a "360-degree" stablecoin acceptance strategy enabling 150 million merchants to accept digital dollar payments.
Collaborating with payment processor Nuvei and stablecoin issuers Circle and Paxos, Mastercard clearly demonstrated that stablecoins are not just a cryptocurrency novelty but a viable solution for seamless global payments. Their full-stack strategy includes wallet support, card issuance, on-chain transfers, and real-time merchant payments.
Additionally, Mastercard launched the OKX card with cryptocurrency exchange OKX, further facilitating stablecoin spending. Payment giant Stripe is also preparing to launch its own USD stablecoin with the goal of expanding beyond the US, UK, and Europe.
Meanwhile, legislative momentum in the US is creating fertile ground for this growth. The bipartisan GENIUS Act aims to establish a clear regulatory framework for stablecoins, encouraging adoption among traditional financial institutions. According to Standard Chartered, such clarity could expand the stablecoin market to $2 trillion in just three years, potentially impacting not only the cryptocurrency sector but also US Treasury demand and dollar global dominance.
While the West lays the foundation for a regulated stablecoin future, other regions are accelerating their digital currency strategies. Abu Dhabi is emerging as a stablecoin innovation hub. Three major companies - ADQ, International Holding Company (IHC), and First Abu Dhabi Bank (FAB) - recently united to launch a dirham-based stablecoin on the locally developed ADI blockchain.
Supported by the UAE Central Bank, this initiative is designed for a wide range of use cases including everyday retail transactions and machine-to-machine and AI-driven payments. FAB is expected to issue stablecoins after receiving regulatory approval, with the ADI Foundation emphasizing the blockchain's scalability and transparency.
Not far away in Russia, the recent Moscow Blockchain Forum focused on the idea of a ruble-based stablecoin. Sergey Mendeleev, founder of Exved exchange, proposed a list of seven criteria for what he called a "Tether replica".
Among the controversial proposed features were untraceable transactions and transfers without Know Your Customer (KYC) verification, elements that could conflict with existing regulations. While Mendeleev praised the over-collateralized DAI model, he admitted skepticism about the feasibility of such a product under current Russian law.
In summary, the stablecoin market is expanding and evolving across multiple dimensions. From Wall Street to Abu Dhabi and Moscow, the global financial sector is preparing for adoption.
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