Key Takeaways
- Stablecoin regulations have become the key focus of countries worldwide, led by the U.S.
- Major private institutions have either launched their stablecoin or have plans to launch in the coming months.
- The stablecoin market will grow into trillions of dollars in the next five years.
The stablecoin race among financial institutions has intensified as the United States and several other countries prepare to introduce new stablecoin legislation.
The $250 billion stablecoin market is expected to grow into trillions in the next five years as the U.S. allows financial and banking giants to foray into digital assets.
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Stablecoins On the Verge of Mass Adoption
The crypto market is no longer taboo or niche, as traditional financial giants foray into the space. Among various decentralized ecosystems and use cases, stablecoins have emerged as a key that could transition and act as a bridge in traditional financial markets.
Banking giants see stablecoins as a key transaction tool over the current SWIFT-based transfers, costing a fraction. With no time or national boundary, blockchain-based stablecoin transactions are near instant and available at all times, 365 days a year.
The current market is dominated by Tether’s USDT and Circle’s USDC; together, they account for 85% of the current stablecoin market share. However, with a new legislation requiring stablecoin issuers to issue monthly audits and strict backing assets, the market’s dynamics might change quickly.
For example, Tether, the largest stablecoin issuer, had to shut down its European operations as major exchanges delisted USDT due to the new Markets in Crypto Assets regulations.
New stablecoins, including Donald Trump-backed World Liberty Financial’s USD 1, have seen a significant adoption rate thanks to their partnership with Binance and Tron. Within a month of launch, USD1 has risen into the top 10 stablecoins by market capitalization.
CBDC Development Takes a Back Seat
Just a couple of years ago, central bank digital currency was the top priority for most countries worldwide; however, today, the CBDC initiative has taken a backseat, thanks to the U.S. policy shift.
The U.S. under Donald Trump has taken a strong stance against CBDC, passing an executive order banning the development and distribution of CBDC in the U.S. America often sets the regulatory tone for the world, and it is no different regarding crypto.
With the GENIUS Act passing the Senate with amendments, it now awaits a final House vote before going to the President for final signature to become a law. Trump has called upon policymakers to unanimously vote for the bill to make way for progressive stablecoin regulations.
In addition to the U.S., South Korea is working to introduce Won-based stablecoins. Hong Kong also conducts a sandbox program to test stablecoin feasibility in various financial markets.
More than a dozen private firms have revealed their plans to launch their stablecoin or have already launched it.
Top Private Firms Eyeing to Enter Stablecoin Market
More than a dozen firms have revealed plans to launch a stablecoin, while nearly half a dozen have already launched one.
Here is the list of private firms planning to launch a stablecoin:
J.P. Morgan:
J.P. Morgan has already issued a JPM Coin, a USD-backed digital coin used to settle client payments on blockchain technology. Additionally, posts on X indicate that J.P. Morgan and other major U.S. banks are exploring a joint stablecoin project to compete with Tether.
Walmart:
According to Reuters, Walmart is exploring issuing its stablecoin, though the company stated it is not currently piloting any programs and has no concrete plans.
Amazon:
Amazon is also exploring the issuance of a stablecoin, per the Wall Street Journal, but no official confirmation or response was provided
Bank of America:
Bank of America CEO Brian Moynihan has indicated potential plans to launch a stablecoin. The bank is also discussing with other major U.S. banks for a joint stablecoin project.
Wells Fargo:
Wells Fargo is part of the group of major U.S. banks exploring a joint stablecoin project to compete with Tether, as reported by Reuters and posts on X
Citigroup:
Citigroup is also involved in discussions with other major U.S. banks to create a joint stablecoin, as noted in posts on X and Reuters reports.
Standard Chartered Bank:
Standard Chartered announced a partnership with cryptocurrency companies to launch a stablecoin pegged to the Hong Kong dollar.
Stripe:
Stripe, a central online payments processor, announced in 2025 that it is rolling out stablecoin accounts in 101 countries. These accounts enable merchants to accept stablecoin payments with lower fees than card transactions.
Société Générale:
Earlier in the first week of June, the French bank revealed plans to launch a publicly tradable, dollar-backed stablecoin through its digital asset subsidiary.
Sumitomo Mitsui Financial Group:
Japan’s second-largest bank is collaborating with Ava Labs and Fireblocks to launch a stablecoin, with testing scheduled for late 2025.
Banco Santander:
A Bloomberg report in May earlier this year said Banco Santander is considering an expansion into digital assets, including early-stage plans to offer a stablecoin.
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