Stablecoin Supply First Exceeds 250 Billion USD: Tether and Circle Still Dominate

According to the latest statistics shared by Delphi Digital, the total supply of stablecoins has exceeded 250 billion dollars for the first time. Yield-generating stablecoins are expanding rapidly, with Ethena alone reaching nearly 6 billion dollars since its launch. USDT from Tether and USDC from Circle continue to dominate this space, together accounting for 86% of the circulating supply. However, the diversity of issuers is increasing, with more than 10 stablecoins currently in circulation exceeding 100 million dollars. Over 120 billion dollars in US Treasury bonds are now held in stablecoins. The Forces Behind the Explosion of the 250 Billion USD Stablecoin It is important to note that the market has recovered significantly after major disruptions over the past four years, including the collapse of Terra (UST) in May 2022, which caused a loss of confidence in algorithmic stablecoins and the devaluation of USDC in March 2023 due to the regional banking crisis and Circle's $3.3 billion investment in SVB. The recent growth may be due to the broader recovery of the digital asset market, the launch of spot cryptocurrency ETFs listed in the U.S. in 2024, and the shift in sentiment under the Trump administration, which has increased institutional interest and the adoption of digital assets. As the stablecoin market continues to grow and gain momentum, policymakers are introducing new laws to strengthen the United States' leading position in the digital financial sector. GENIUS Advancement Act After the Senate passed the GENIUS Act with a vote of 68-30, U.S. President Donald Trump called on the House of Representatives to act swiftly to pass the legislation. The act guides and establishes national innovation for the U.S. stablecoin. On Truth Social, Trump stated that the legislation would make the U.S. the "undisputed leader in digital assets" and urged lawmakers to avoid delays or amendments. The bill's sponsor, Senator Bill Hagerty, previously emphasized the potential of this legislation to expedite the processing of payments nationwide. The House, controlled by the Republicans, is currently expected to vote. Criticism of the GENIUS Act has intensified in some areas, particularly from Democratic lawmakers concerned about conflicts of interest. The original bill was stalled in May, failing to pass a final vote amid concerns over Trump's cryptocurrency ties. Senator Elizabeth Warren, one person, stated that this law could help Trump and his family earn "hundreds of millions" through their stablecoin USD1. While Senator Mark Warner expressed ethical concerns, he warned that continued inaction would cause the United States to fall behind.