Stablecoin Market Surpasses $250 Billion Amid GENIUS Act Boost

Stablecoins have crossed a major milestone in July 2025, with the total market cap surging past $250 billion, an increase of $4 billion from the previous month. The growth has been attributed to the enactment of the GENIUS Act on July 18, which introduced clearer regulatory guidelines for digital assets and stablecoins in particular. The new legislation has lowered entry barriers for institutional players and enhanced user confidence in stablecoin usage, especially in dollar-pegged forms [2].

Tether, the leading stablecoin issuer, has played a central role in this surge. In the first seven months of 2025, Tether issued $20 billion in USDT, with an additional $6 billion added in July alone, bringing its total supply beyond $157 billion [1]. This reflects the strong demand for USDT across global crypto markets, where it is increasingly used for cross-border transactions, liquidity provision, and peer-to-peer exchanges. Over $52.9 billion in USDT transfers were recorded in recent months, reinforcing its dominant position in the market [5].

Tether’s financial strength has also grown significantly, with a Q2 2025 net profit of $4.9 billion and a first-half total profit of $5.7 billion [3]. The company has bolstered its asset backing by increasing its holdings of U.S. Treasury securities to $127 billion as of June 30, 2025, including $105.5 billion directly and $21.3 billion indirectly [4]. This expansion in reserves is part of Tether’s strategy to reinforce the stability and trust in its stablecoin, aligning with the broader regulatory environment created by the GENIUS Act.

The increased issuance has translated into heightened user activity. Monthly active stablecoin addresses rose by 20% in July, reaching over 38 million users, indicating broader adoption across DeFi platforms and everyday financial activities [2]. Meanwhile, stablecoin transactions hit $7 trillion in Q1 2025 alone, marking a record high for the sector. These figures highlight the growing utility of stablecoins beyond mere trading pairs, with increasing applications in commerce, savings, and programmable finance [2].

The stablecoin market’s expansion has also drawn attention to broader questions about governance, transparency, and regulatory oversight. Tether’s exposure to U.S. Treasuries has elevated its influence in financial systems, raising concerns about the potential for private entities to shape macroeconomic conditions with minimal regulatory scrutiny compared to traditional institutions [7]. As the market continues to evolve, stakeholders are closely watching for potential regulatory responses and systemic risks.

Despite the challenges, the demand for USDT continues to outpace that of its competitors. As of late July, USDT maintained a $1.00 peg while supporting a market cap of $162.53 billion, solidifying its position as the leading stablecoin in the industry [6]. The broader market is also witnessing increased institutional interest, with inflows into tokenized assets and Ethereum-based stablecoins accounting for over half of the sector [2].

With the market cap now firmly above $250 billion, the stablecoin ecosystem is poised for further growth. Regulatory clarity from the GENIUS Act could encourage innovation in areas such as CBDCs, tokenized real-world assets, and deeper integration with traditional finance. If this momentum continues, stablecoins may soon challenge conventional payment systems, offering faster, cheaper, and more transparent alternatives on a global scale.

Source:

[1] Tether.io, "Tether Issues $20B in USDT YTD", https://tether.io/news/tether-issues-20b-in-usdt-ytd-becomes-one-of-largest-u-s-debt-holders-with-127b-in-treasuries-net-profit-4-9b-in-q2-2025-attestation-report/

[2] Ninepoint, "Chart 1: The Stablecoin Market Hits $250B", https://www.ninepoint.com/alt-thinking/digital-asset-group/dag-newsletter/2025/07/ai-haves-and-have-nots/

[3] XT.com, "Tether Releases its Q2 2025 Attestation Report", https://www.xt.com/en/blog/post/tether-releases-its-q2-2025-attestation-report-confirming-net-profit-of-about-4-9-billion-for-the-quarter

[5] Crypto, "USDT Transfer Volume Hits $52.9B", https://cryptonews.net/news/blockchain/31362746/

[6] Cryptonews, "Best Crypto to Buy Now in August 2025", https://cryptonews.com/cryptocurrency/best-crypto-to-buy/

[7] Businesspost.ng, "Tether Exposure to US Treasuries Climbs to $127bn", https://businesspost.ng/world/tether-exposure-to-us-treasuries-climbs-to-127bn/