#stablecoins

#stablecoins

SWIFT - aka the Society for Worldwide Interbank Financial Telecommunication - provides a messaging service that financial institutions use to move money around the world. The service is widely used but is slow because, as explained by ANZ Bank, SWIFT "doesn't actually move the money." "This means the instruction to pay and the movement of funds happen separately, often requiring a complex network of accounts and correspondent banks to enable a payment to be processed.

The Digital Asset Treasury (DAT) strategy has moved from an experiment to a consensus playbook for public companies seeking balance-sheet exposure. Digital Asset Treasuries are listed companies that accumulate tokens as treasury assets, using the stock market's financing power to steadily increase onchain holdings. In its half-year report, HTX research breaks down how the DAT strategy has become the industry standard, how perpetual aggregators ballooned, how stablecoins remain a dominant narrative, and more.

The hottest technology in crypto right now are stablecoins, a type of cryptocurrency that is typically pegged to the U.S. dollar. While Tether and Circle's USDC are the clear leaders right now, it's very possible a yet-to-be-released stablecoin could emerge as the long-term winner. That's according to Austin Campbell, a professor and former executive at the stablecoin firm Paxos, who shared his thoughts on the latest edition of Fortune's Crypto Playbook (available on Spotify, Apple, and YouTube).

Stablecoins reduce settlement time, cross-border costs and enable programmable rewards. They outpace traditional credit card systems. US merchants pay over $100 billion in card fees yearly. In comparison, stablecoins offer much cheaper, faster payments. Ripple's RLUSD, Gemini's XRP Card and Moca's Air Shop show stablecoins moving into mainstream commerce. With big players exploring adoption, stablecoins are positioned to become central to US payment systems.

Traditional payment systems process transactions through layers of intermediaries, creating delays and costs that hold back global commerce. While stablecoins processed $27.6T in 2024 alone-more than Visa and Mastercard combined-most of this digital money remains trapped in wallets, unable to be spent at everyday merchants. Rain addresses this gap by providing enterprise-grade stablecoin infrastructure that lets businesses launch card programs, wallets, and payment solutions through a single API integration.

A new wave of millionaires is rising from culture, entertainment and Web3-native models like Stake.com. Crypto leadership shifts fast; most top names today weren't on the radar a decade ago. The crypto market is back in full force as of mid-2025. Total capitalization has surged to $3.8 trillion (up over 130% year-on-year), which has sparked a new surge of wealth across the industry.

China has been expanding use of digital currencies as it promotes wider use of its yuan, or renminbi, to reflect its status as the world's second-largest economy and challenge the overwhelming sway of the U.S. dollar in international trade and finance. However, restrictions on access to Chinese financial markets and limits on convertibility of the yuan, or "people's money," are big obstacles blocking its global use.

The $250 billion stablecoin market, dominated by Tether's ($158 billion) and Circle Internet 's ( ) ($62 billion), is a cornerstone of global digital finance. These U.S. dollar-backed tokens power everything from DeFi to cross-border payments. But China is wary of U.S. financial dominance, and is eyeing a yuan-backed stablecoin to challenge this duopoly. With Hong Kong as a potential launchpad and China's digital yuan gaining traction, is this a game-changer or just geopolitical posturing? More importantly, should Tether and Circle Internet worry?

The growth of the market for tokenized assets has been far slower than expected in recent years, with many projects still in their infancy or not yet live.

Although they have comparatively few problems accessing overseas bank accounts-often in the Cayman Islands or Switzerland-in lieu of a US bank account, they are often unable to earn yield on deposits or transact seamlessly with US-based counterparties, and sometimes incur high account fees.

The GENIUS Act makes it law that permitted payment stablecoin issuers must hold reserves for every dollar of stablecoins offered, which can be any government-issued asset approved by regulators.

According to the 2025 State of Crypto Report, stablecoins are gaining rapid momentum: 81% of crypto-aware SMBs express interest in using stablecoins. Fortune 500 executive interest has tripled since 2024. The total stablecoin supply hit $227 billion in April 2025 - a 54% YoY increase.

MiCA mandates that all crypto platforms in the EU must register and obtain a license, along with enforcing strict KYC and AML protocols for CASPs.

"I think that we are falling prey to some confusion between money, means of payment, and payment infrastructure, and that is accelerated..."

"The bank will be a national bank... providing traditional banking products, as well as virtual currency-related products and services, for businesses and individuals."

in just a few years, stablecoins transformed from fringe assets to pivotal components of the financial ecosystem, demonstrating their critical role in today's financial landscape.