Written by: Pedro Solimano, DLNews
Translated by: Yuliya, PANews
Traditional financial institutions continue to pour into the $238 billion stablecoin market, accelerating the restructuring of industry competition. Fidelity Digital Assets recently joined this track, marking a substantial layout by mainstream asset management institutions. Here are the strategic dynamics and product progress of the current market's main participants:
Fidelity
According to informed sources, Fidelity Digital Assets, the crypto business division of Fidelity Investment Group, has launched stablecoin research and development testing. With assets under management reaching $5 trillion, its entry validates traditional asset management giants' recognition of the stablecoin market. This development comes as the U.S. Senate reviews a milestone regulatory bill, and a policy breakthrough may further activate market potential.
PayPal
PayPal launched its stablecoin PYUSD in 2023, pioneering stablecoin integration into its platform. Users can buy, transfer, or use PYUSD through the company's app or website, just like using regular PayPal balance. The stablecoin currently has a market cap of $791 million.
Robinhood
Benefiting from rapid crypto asset trading growth, Robinhood achieved profitability in the fourth quarter, with cryptocurrency sales increasing by 700%. In November 2024, Robinhood collaborated with crypto exchange Kraken and research firm Galaxy Digital to launch USDG, a stablecoin operating on the "Global Dollar Network" that offers yield returns to holders. Its market cap quickly grew from $29 million at the beginning of the year to $166 million.
Ripple
Ripple launched its stablecoin RLUSD in December last year. Ripple, long-term user of XRP for cross-border payments, plans to use this new currency to "provide stability and liquidity to its ecosystem". Ripple CEO Brad Garlinghouse stated at RLUSD's launch that with increasingly clear U.S. regulations, stablecoins like RLUSD are expected to gain broader adoption. The stablecoin's market cap has grown to $176 million, a small fraction of XRP's $140 billion market cap.
World Liberty Financial
Trump's crypto empire has also set its sights on the stablecoin sector. On March 25, the DeFi platform World Liberty Financial under his family's umbrella released details of its stablecoin USD1. The stablecoin will be backed by short-term U.S. Treasury bonds, USD deposits, and other cash equivalents, initially issued on Ethereum and BNB Chain.
Standard Chartered Bank
The British bank with deep influence in Asia, Standard Chartered, is developing a stablecoin pegged to the Hong Kong dollar. In February this year, the bank announced collaboration with Hong Kong Web3 company Animoca Brands and telecom provider HKT to develop the stablecoin. The stablecoin has not yet been officially launched to the market.
Market Size May Double This Year
Market data shows that stablecoin transaction volume reached $16 trillion in 2024, with total market capitalization climbing to $238 billion. Although Tether (USDT) and Circle (USDC) still occupy 85% of the market share, Bernstein analysts predict the market size will double this year. Moreover, researchers from the Atlanta Fed's report indicates that these digital tools are playing an increasingly important infrastructure role in trillion-dollar payment systems. As regulatory frameworks are refined and technical standards established, the stablecoin market may be poised for a new round of explosive growth.
