Stablecoin Market Surges Past $100 Billion in Daily Trading Volume

The stablecoin market has surpassed $100 billion in daily trading volume, outpacing Bitcoin and Ethereum. The surge in trading underscores the pivotal role stablecoins play in the digital currency sphere, reshaping demands in traditional and digital financial systems. Stablecoin issuers Tether and Circle have expanded the market, with at least 80% of the $250 billion stablecoins backed by US Treasury bonds, potentially holding between $1.2 trillion to $1.6 trillion by 2028.

The stablecoin market has surpassed $100 billion in daily trading volume, outpacing Bitcoin and Ethereum. This surge underscores the pivotal role stablecoins play in the digital currency sphere, reshaping demands in both traditional and digital financial systems. Stablecoin issuers Tether and Circle have expanded the market, with at least 80% of the $250 billion stablecoins backed by US Treasury bonds, potentially holding between $1.2 trillion to $1.6 trillion by 2028 [1].

Plasma, a blockchain company, has positioned itself as a leader in the stablecoin market by securing $1 billion in deposits ahead of its XPL token pre-sale. The company aims to launch an EVM-compatible Bitcoin sidechain optimized specifically for stablecoin transactions by late summer 2025. According to Plasma CEO Paul Faecks, the platform’s focus on stablecoins drives unique architectural and liquidity decisions, setting it apart from other blockchains [2].

In preparation for its mainnet launch, Plasma has initiated a public pre-sale for its XPL token, with deposits capped at $1 billion to ensure broad and fair participation. The pre-sale includes regulatory measures such as a 12-month lock-up period for U.S. participants, reflecting Plasma’s commitment to global compliance. This approach aims to foster trust among investors and regulatory bodies, positioning Plasma as a credible player in the evolving stablecoin ecosystem [2].

The stablecoin market continues to expand, with financial institutions and fintech companies expected to incorporate cryptocurrencies into their portfolios. In 2024, the total market value of stablecoins was USD 140 billion, showing a USD 2 billion increase from the end of 2023. Moreover, the average daily transaction volume for stablecoins surged to USD 7 billion, representing an 8% increase from 2023. Stablecoins are now accepted in over 70 countries, optimizing cross-border payments and remittances, with 25,000 merchants accepting them [3].

Cross-border payment platform dLocal has partnered with BVNK, a provider of stablecoin payment infrastructure, to augment stablecoin payouts in 40 markets. Through this partnership, the two firms enable programmable, optimal, and cost-effective money movement across new markets. By partnering, BVNK will provide stablecoin payment rails to dLocal, allowing them to offer faster settlement to their global merchant base. Additionally, dLocal will offer BVNK’s emerging markets coverage in Africa, Asia, and Latin America. Customers can fund cross-border payments using stablecoins and have them delivered to recipients in local currencies optimally and at scale [3].

In brief, Flashnet and Brale will launch the dollar-backed USDB stablecoin on Bitcoin later this summer. The dollar-denominated coin will be powered by Bitcoin layer-2 network Spark. Magic Eden will help distribute USDB, supporting the stablecoin across its trading platform. USDB is designed to bring dollar liquidity to Bitcoin without needing wrapped assets, synthetic structures, or bridges. It is launching in collaboration with NFT marketplace Magic Eden, and is designed to bring dollar liquidity to Bitcoin without needing wrapped assets, synthetic structures, or bridges [3].

As stablecoins gain traction in mainstream finance, Plasma’s specialized platform could become a critical enabler of widespread stablecoin adoption and integration. The company’s focused approach to building a stablecoin-optimized blockchain, combined with substantial financial backing and strategic partnerships, positions it as a formidable contender in the stablecoin market. By prioritizing gasless transactions, privacy, and regulatory compliance, Plasma aims to deliver a superior payment infrastructure tailored to the unique demands of stablecoins [2].

References:
[1] https://en.coinotag.com/plasma-aims-to-position-xpl-as-leading-stablecoin-chain-following-1-billion-deposit-milestone/
[2] https://thepaypers.com/cryptocurrencies/dlocal-and-bvnk-partners-to-augment-stablecoin-payouts--1274240
[3] https://decrypt.co/326741/bitcoin-gets-native-dollar-backed-stablecoin-usdb