Stablecoins – crypto tokens pegged to a currency such as the US dollar – moved further into the mainstream in 2025. By July 2025, Tether's USDT alone accounted for $162 billion in supply and Circle's USDC for about $63 billion (source [1]).
Banks are entering the market
Traditional banks are now issuing their own stablecoins as well. In the EU, at least ten stablecoins had been approved under the MiCA rules by mid-2025, including offerings from Circle, Crypto.com, Fiat Republic and the French bank Société Générale (source [2]).
Clear rules in the US: the GENIUS Act
On 18 July 2025, President Trump signed the GENIUS Act, the first federal framework for dollar stablecoins. Issuers must back their tokens at least 1:1 with highly liquid assets such as US dollars and short-term Treasury bills, may not pay interest to holders and are subject to anti-money-laundering rules. The law takes effect 18 months after enactment or 120 days after the final implementing rules, whichever comes first (source [3]).
What it means for bitcoin
- Liquidity: Stablecoins are the most important on- and off-ramp for bitcoin trading on many platforms.
- Competition in payments: For everyday payments in dollars, stablecoins compete with bitcoin, as the example of Kenya shows.
- Different purpose: A stablecoin is a digital dollar – issued by a company that can freeze tokens and tied to the currency's purchasing power. Bitcoin has no issuer and a fixed supply.
Sources
