Bitcoin News Today: Stablecoin Giants Pour $1.75B to Counter Rising Competition and Regulatory Shifts

Tether and Circle, the two dominant stablecoin issuers, have collectively injected $1.75 billion in new stablecoins into the market in the past week, signaling a surge in liquidity amid a broader $12.75 billion increase in stablecoin issuance over the past month . The latest data, tracked by on-chain analysts and blockchain explorers, underscores growing demand for dollar-pegged tokens as crypto markets grapple with post-crash volatility and institutional adoption . Tether's recent minting of 1 billion USDT alone represents a significant portion of this influx, with transactions traceable across multiple blockchains including Solana, Ethereum, and Tron .

The expansion of stablecoin supply has direct implications for crypto trading dynamics. Analysts note that increased stablecoin liquidity often precedes heightened activity in Bitcoin and Ethereum pairs, as fresh USDT and USDC flows provide the necessary capital for spot and derivatives trading . Historical data from 2024 showed trading volumes spiking by up to 20% following similar minting events, with technical indicators like RSI and moving averages becoming critical tools for traders navigating the resulting volatility . For instance, a $1.75 billion injection into USDT could translate to increased buy-side pressure on Bitcoin, potentially pushing prices toward key resistance levels if market sentiment remains bullish .

However, the dominance of Tether and Circle is facing mounting challenges. Their combined market share has slipped from 91.6% in March 2024 to 83.6% as of October 2025, according to data from CoinGecko and DefiLlama . Competitors such as Ethena's USDe, PayPal's PYUSD, and emerging bank-issued stablecoins are carving out market share by offering yield-sharing models and regulatory compliance . Ethena's USDe, for example, has surged to a $14.7 billion supply by leveraging crypto basis trades to pass yields to holders, a strategy that newer entrants are replicating to attract institutional and retail investors .

Regulatory developments, particularly the U.S. GENIUS Act, are reshaping the competitive landscape. The legislation has spurred traditional financial institutions to enter the stablecoin space, with JPMorgan, Bank of America, and European banks like ING and UniCredit forming consortia to issue compliant stablecoins . These efforts aim to capture market share by offering yield-driven products and leveraging existing infrastructure, further fragmenting the market . JPMorgan analysts predict that the stablecoin market could become a "zero-sum game" unless the broader crypto market expands significantly, with competition now focused on market share rather than growth .

Despite these challenges, Tether and Circle remain pivotal to the ecosystem. Tether's total USDT supply now exceeds $169.5 billion, with daily trading volumes surpassing $100 billion, reinforcing its role as the primary liquidity provider for crypto exchanges . Circle's USDC, meanwhile, has gained regulatory traction, particularly in the EU under MiCA, and has seen its market share rise to 25.5% in late September, up from 24% at the start of the year . Both issuers are also adapting to competitive pressures: Tether is preparing to launch USAT, a GENIUS-compliant stablecoin, while Circle has partnered with Deutsche Börse to integrate USDC into European financial infrastructure .

Looking ahead, the stablecoin market's evolution hinges on regulatory clarity and technological innovation. As banks and fintechs enter the fray, the race for market share will intensify, with yield strategies and compliance frameworks becoming key differentiators. For traders, the surge in stablecoin issuance provides both opportunities and risks, from arbitrage across chains to potential inflationary pressures on stablecoin pegs. The next phase of this market will likely be defined by how incumbents like Tether and Circle defend their dominance against a rapidly diversifying ecosystem.

Source: [1] Tether mints another 1B USDT as Tether and Circle add 12.75B ... (https://blockchain.news/flashnews/tether-mints-another-1b-usdt-as-tether-and-circle-add-12-75b-stablecoins-in-the-past-month-signaling-liquidity-to-watch-for-btc-and-eth)

[2] Tether Mints $1B USDT as Stablecoin Issuance Hits $12.75B in ... (https://coinfomania.com/tether-mints-1b-usdt-as-stablecoin-issuance-hits-12-75b-in-month/)

[3] Tether Mints $1B USDT Amid Surge in Stablecoin Issuance (https://thecurrencyanalytics.com/altcoins/tether-mints-1b-usdt-amid-surge-in-stablecoin-issuance-197070)

[5] Circle's (CRCL) USDC Gains Versus Tether's USDT - CoinDesk (https://www.coindesk.com/markets/2025/09/30/stablecoin-market-surges-on-u-s-regulation-with-circle-s-usdc-gaining-ground-jpmorgan)

[6] JPMorgan Predicts Intense Competition for Circle in Stablecoin (https://coincentral.com/jpmorgan-predicts-intense-competition-for-circle-in-stablecoin-market/)

[7] Today's stablecoin giants might not be walking tall forever (https://coingeek.com/today-stablecoin-giants-might-not-be-walking-tall-forever/)

[11] USDT, USDC duopoly in Stablecoin declines as competition... (https://coinjournal.net/news/usdt-usdc-duopoly-in-stablecoin-declines-as-competition-and-regulation-reshape-the-market/)