Recently, the latest data disclosed by Tether shows that its holdings of U.S. Treasury bonds have exceeded $120 billion, a figure that not only surpasses the holdings of sovereign countries like the UAE and Germany but also places this stablecoin issuer as the 18th largest U.S. debt holder globally.
For those familiar with the crypto market, this number is astonishing; in traditional finance, it looks more like a "financial tectonic movement". Some argue that stablecoin issuers like Circle and Tether are consuming more U.S. Treasury bonds than most countries, which could potentially reshape the U.S. economy.
In supporters' eyes, this is a new extension of dollar hegemony: through on-chain liquidity and global payment networks, stablecoins provide unprecedented leverage for the U.S. dollar to maintain its dominant position in international trade and digital assets. However, critics warn that even if stablecoins occupy a small part of the entire market, they might cause financial instability in the banking sector, as stablecoins could drain funds from bank deposits, and since deposits are necessary liquidity for loans, stablecoins could likely threaten the credit system.
Stablecoin Market Prosperity and Oligopolistic Landscape
The stablecoin market is currently in a liquidity boom. According to stablecoins.asxn.xyz data, the global stablecoin total market value has surged to $269.73 billion, hitting a historical high. Among them, Tether's USDT leads with a market value of $164.49 billion, followed closely by Circle's USDC at $64.97 billion, together occupying over 85% market share, forming a clear oligopolistic structure.
More interestingly, under this highly concentrated landscape, the market's innovative vitality has not been suppressed. Since 2024, the total number of stablecoins has increased to 282, with new categories continuously emerging from on-chain payments to cross-border settlements.
In terms of market value curves, USDT remains stable with slight growth, USDC has shown a slowdown in growth since May 2025, while the decentralized stablecoin USDe recorded over a 75% monthly increase in July, becoming a "dark horse" disrupting the landscape.
On July 18, 2025, U.S. President Trump signed the GENIUS Act, setting new boundaries for the stablecoin industry, marking a turning point for stablecoins moving from edge innovation to mainstream finance. This legislation is not only a response to industry expansion but also reflects the United States' intention to incorporate stablecoins into its "digital dollar" strategic map.
For compliant issuers like Circle, the act means an expansion of market space; for Tether, global market advantages may face challenges due to pressure on reserve transparency and compliance standards. Regardless of the ultimate outcome, stablecoins are becoming an extension tool of U.S. dollar hegemony in the digital era, and are also planting new variables in the global financial system.
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