Stablecoin Market Surges to Record $256 Billion

The total market value of the stablecoin market soared to a record $256 billion on Wednesday, up 22% so far this year.

An important driving force behind the stablecoin market to set a new record is the GENIUS Act passed by the U.S. Senate. With a vote of 68 in favor and 30 against, the bill became the first major cryptocurrency legislation passed by the Senate. Although the bill still needs to be approved by the House of Representatives and President Trump, its progress marks a critical moment for the cryptocurrency industry.

Stablecoins have now become an important pillar of the cryptocurrency ecosystem. In the first quarter of 2025 alone, stablecoins accounted for 28% of the total cryptocurrency trading volume. Tether's USDT leads the market with a market value of $155 billion, followed by Circle's USDC with a market value of $61 billion.

The booming stablecoin market has attracted more participants, including U.S. President Trump.

World Liberty Financial, a cryptocurrency company supported by President Trump and his son, has partnered with BitGo to launch its stablecoin, which is pegged to the U.S. dollar (1 U.S. dollar).

In addition, many traditional financial companies are also beginning to consider getting involved in this field.

Although JPMD, recently released by JPMorgan, does not fully meet the qualifications of a stablecoin, it has many similar features to stablecoins, such as its value will be pegged to the US dollar and use blockchain infrastructure to facilitate transactions.

This month, Bank of America and other large banks jointly explored the possibility of launching a cooperative stablecoin network. In addition, it was reported last week that Amazon (AMZN) and Walmart (WMT) are studying the possibility of stablecoins. However, a Walmart spokesperson later denied this.

The market's growing interest in stablecoins is evidenced by the stock price trend of stablecoin issuer Circle. Since its first day of listing on June 5, Circle's stock price has soared by about 400%.

Source: TradingView

The market generally expects stablecoins to rise further after the bill is passed.

U.S. Treasury Secretary Scott Bessent said in an interview on Wednesday that stablecoins can help reduce global financial risks and strengthen the dominance of the US dollar.

He explained that stablecoins have the potential to become one of the largest buyers of U.S. Treasuries, thereby consolidating the dollar's position in the global economy. He added that there is a high probability that cryptocurrencies will eventually become a key factor in ensuring the long-term hegemony of the U.S. dollar.

However, the GENIUS Act has sparked controversy. The bill prohibits members of Congress and their families from profiting from stablecoins, but the president and his family are excluded, which angered some Democrats and shelved the bill earlier this year.