Stablecoin Market Capitalization Surpasses USD1 Billion Despite Crypto Downturn

The stablecoin market has continued to grow in early 2026 despite a broader downturn in the cryptocurrency sector. Total market capitalization of stablecoins rose over 50% in January, surpassing the USD1 billion threshold. This growth is attributed to increased adoption in cross-border payments and tokenized assets.

Euro stablecoins are projected to expand significantly, with S&P Global forecasting growth from €650 million in 2025 to €1.1 trillion by 2030. This expansion will be fueled by tokenized real-world assets and blockchain-enabled payments. The regulatory environment, especially the Markets in Crypto-Assets (MiCA) framework, is expected to play a key role in this growth.

Major European banks are preparing to issue a MiCA-compliant euro stablecoin in 2026. This initiative involves a consortium of 11 institutions, including ING, UniCredit, and CaixaBank. These banks aim to challenge the dominance of U.S.-pegged stablecoins by offering a euro-backed alternative. The consortium plans to address liquidity challenges by leveraging its access to 150 million customers.

Why Did This Happen?

Tokenized investments are driving demand for euro stablecoins. S&P Global forecasts €500 billion in demand from tokenized real-world assets like government bonds and private credit. The digitization of these assets is expected to enable more efficient trading and asset management. As traditional financial institutions adopt blockchain technology, demand for euro stablecoins is projected to rise.

Tokenized payments are another key driver. S&P Global estimates that €100 billion in demand will come from retail and corporate payments by 2030. Blockchain technology offers faster and cheaper cross-border transactions, making stablecoins an attractive option for businesses. The MiCA regulation will also help by providing a regulatory framework for digital assets, giving banks confidence to issue and manage euro stablecoins.

How Did Markets React?

The U.S. and Asian markets are also showing strong interest in stablecoin development. In South Korea, Samsung Electronics' market capitalization surpassed 1,000 trillion won (US$688 billion) as its shares continued to rally amid a global artificial intelligence boom. This growth is partly due to increased demand for chips, including high bandwidth memory (HBM), used in AI infrastructure. Samsung reported record operating profit and sales in Q4 2025, highlighting the sector's strength.

In Southeast Asia, TIAN RUIXIANG Holdings Ltd. is preparing to launch a government-backed stablecoin in key countries like Indonesia, Malaysia, Singapore, and Thailand. The company has formed a partnership with a global digital asset investor, which injected 15,000 Bitcoin into the project. This initiative aims to create a regulated stablecoin that will serve as a foundation for cross-border finance and AI-driven financial solutions in the region.

What Are Analysts Watching Next?

Regulatory developments remain a key focus for analysts and investors. In the United States, the Bull Moose Project is urging senators to pass a clear crypto bill to establish a regulatory framework for the blockchain sector. A clean bill could help the U.S. position itself as the global crypto capital, supporting innovation and consumer protection.

The European stablecoin market is also closely watched as the MiCA regulation moves toward implementation. The entry of major banks into the stablecoin space could reshape the competitive landscape. Traditional financial institutions may gain an edge by leveraging their customer bases and regulatory expertise. This shift could reduce the dominance of U.S.-pegged stablecoins in Europe.

Analysts are also monitoring demand signals in the stablecoin sector. Corpay, a financial services provider, reported that demand for stablecoins remains low despite growing interest in the market. The company is still building out its digital wallet infrastructure and piloting blockchain-based fund transfers.

Investor attention is also on market volatility and capital allocation strategies. Equinor, an energy company, has reduced its capital expenditures by $4 billion in 2026 amid market uncertainty. The firm expects production growth of 3% in 2026 while maintaining a focus on shareholder returns. This strategy reflects broader trends as companies adjust to shifting economic conditions and regulatory environments.