The competitive landscape of the stablecoin market is reshaping, with TradFi and tech giants accelerating their entry.

On May 13, data showed that the total market capitalization of stablecoins reached $242.821 billion. Among them, the market capitalization of USDT broke through $150 billion for the first time, reaching $150.663 billion, accounting for 62%. Following closely is USDC, which accounts for nearly 25%.

Recently, the stablecoin industry has seen frequent developments. Due to changes in the regulatory environment, Tether plans to launch a new dollar-backed stablecoin in the U.S. within the year. Circle has submitted a public offering application to the SEC and plans to go public.

At the same time, giants with a fintech gene are actively positioning themselves, and with the addition of traditional financial institutions and yield-generating stablecoin projects, it is expected to break the current market pattern and bring more innovation and popularization to the industry. Stablecoins are widely used in scenarios such as cross-border payments, DeFi, and on-chain transactions.

Tech Companies Compete for Stablecoin Payments

A certain payment giant recently launched a "stablecoin financial account," allowing enterprise users in 101 countries to hold account balances in stablecoins. They also released a programmable stablecoin USDB, which developers can embed in applications and earn rewards through ecosystem development. The company previously acquired a stablecoin infrastructure platform for $1.1 billion to promote global payment applications.

Another payment giant has announced that starting in 2025, American users holding stablecoins on its platform will earn a 3.7% yield, encouraging users to buy and hold.

A certain cryptocurrency exchange has launched the x402 payment standard, which is a stablecoin standard designed specifically for internet-native payments, aiming to achieve atomic-level transactions between APIs, applications, and AI agents.

According to reports, a social media giant is in talks with several crypto companies regarding the application of stablecoins, exploring ways to reduce cross-border payment costs for creators through stablecoins. The company has appointed relevant executives to lead the initiative.

A cross-border remittance company has launched a cash deposit and withdrawal channel supporting stablecoins, covering over 170 countries, providing a new way for stablecoins to interoperate with daily consumption.

The Counterattack of Traditional Payment Giants

The two major payment network giants have successively announced collaborations with exchanges and wallets to launch a broader integration of stablecoins. On one hand, allowing consumers to spend their stablecoin balances via cards, and on the other hand, merchants can directly settle fiat card payments in USDC.

These products significantly lower the barrier for users to adopt stablecoins by integrating with existing payment systems. Users do not need to worry about whether merchants support stablecoin payments; they can simply complete the payment using their linked card.

Market leaders consolidate their "moat", new players initiate alliances

A leading stablecoin issuer has announced partnerships with several global banks and startups to launch a payment network aimed at improving international payments, directly challenging the traditional banking network. The company has applied to list on the NYSE, marking a further recognition of the legitimacy of stablecoin payments.

The leading stablecoin USDT's market capitalization has surpassed $150 billion for the first time, but its market dominance has declined from 70% to 62% over the past year. To maintain growth, the company has taken measures such as expanding cross-chain capabilities and plans to launch a new dollar-supported stablecoin in the United States within the year.

A fintech company has launched its US dollar treasury bond token on a new blockchain and introduced a cross-chain bridging solution, enhancing interoperability and global accessibility.

A stablecoin issuer has partnered with multiple institutions to launch a stablecoin network alliance aimed at accelerating the global use of stablecoins. Recently, the alliance added 19 new members, including exchanges, custodians, wallet providers, and more.

Traditional Banks Enter the Stablecoin Issuance

A large American bank has stated that it is willing to issue its own stablecoin if Congress passes relevant legislation. The bank's CEO has previously expressed that they will enter this business area as long as legislation allows.

Another international bank has reached an agreement with several institutions to establish a joint venture, planning to apply to regulators for a license to issue Hong Kong dollar-backed stablecoin.

As traditional finance and tech giants accelerate their entry, the competition landscape of the stablecoin market is being reshaped. The involvement of various forces is expected to bring more innovation to the industry and promote the widespread application of stablecoins in areas such as payments and investments.