The total market cap of stablecoins has surged to nearly $240 billion, marking a significant milestone as it nears a new all-time high.
According to DeFiLlama data, over $5 billion in new stablecoin supply was issued in the past week alone, representing a 2.18% increase over seven days and a 2.62% rise over the past month.
Notably, Tether (USDT) continues to dominate the market with a market share of 61.92%, followed by other major players, including USD Coin (USDC), Ethena USDe (USDe), and Dai (DAI).
Citigroup has released a report predicting explosive growth for the stablecoin market, estimating it could surpass $2 trillion by 2030 if favorable regulatory developments continue.
Under its base-case scenario, the bank expects stablecoin supply to reach $1.6 trillion, while its optimistic projection puts that figure at $3.7 trillion. However, the report also cautions that without clearer regulations, the market could stall at around $500 billion.
This growth is bolstered by a 53% year-on-year increase in active stablecoin wallets, which rose from 19.6 million in February 2024 to 30 million by February 2025.
Additionally, the total stablecoin supply increased from $138 billion to $225 billion during the same timeframe, representing a 63% surge.
With increasing adoption by institutions, integration in DeFi platforms, and usage in global payments, stablecoins are now fundamental to the digital economy.
Even Federal Reserve Governor Christopher Waller recently acknowledged their significance, suggesting that U.S. dollar-backed stablecoins could help preserve the dollar’s global dominance.
Mastercard and the Race to Mainstream Adoption
A key driver of stablecoin adoption has been mainstream integration, most notably in the payments sector.
Mastercard recently unveiled its “360-degree” strategy for stablecoin acceptance, enabling 150 million merchants to receive payments in digital dollars.
Teaming up with payment processor Nuvei and stablecoin issuers Circle and Paxos, Mastercard has made it clear that stablecoins are not just a crypto novelty but a viable solution for seamless global payments.
Their full-stack strategy includes wallet support, card issuance, on-chain remittances, and real-time merchant settlement.
In tandem, Mastercard launched the OKX Card with the crypto exchange OKX, further easing access to stablecoin spending.
Stripe, the payment giant, is also preparing the launch of its own USD stablecoin, with a target to expand beyond the US, UK, and Europe.
Meanwhile, legislative momentum in the U.S. is creating fertile ground for this growth. The bipartisan GENIUS Act aims to establish a clear regulatory framework for stablecoins, encouraging adoption among traditional financial institutions.
According to Standard Chartered, this clarity could expand the stablecoin market to $2 trillion within just three years, with implications not only for the cryptocurrency sector but also for U.S. Treasury demand and the dollar’s global dominance.
Geopolitical Expansion: UAE and Russia Enter the Fray
As the West lays the groundwork for a regulated stablecoin future, other regions are accelerating their digital currency strategies.
Abu Dhabi, in particular, is emerging as a hub for stablecoin innovation. Three major entities, ADQ, International Holding Company (IHC), and First Abu Dhabi Bank (FAB), have recently joined forces to launch a dirham-backed stablecoin on the locally developed ADI blockchain.
The initiative is backed by the UAE’s central bank and is designed for a wide range of use cases, including everyday retail transactions, as well as machine-to-machine and AI-driven payments.
FAB is expected to issue the stablecoin once it receives regulatory clearance, and the ADI Foundation has touted the blockchain’s scalability and transparency.
Not far behind is Russia, where the idea of a ruble-backed stablecoin was a focal point at the recent Blockchain Forum in Moscow.
Sergey Mendeleev, founder of the Exved exchange, proposed a list of seven criteria for what he called a “Tether replica.”
Among the controversial features suggested were untraceable transactions and transfers without Know Your Customer (KYC) checks, elements that would conflict with existing regulations.
While Mendeleev praised the overcollateralized DAI model, he admitted skepticism about the feasibility of such a product under current Russian law.
In summary, the stablecoin market is expanding and evolving across multiple dimensions. From Wall Street to Abu Dhabi and Moscow, the global financial sector is gearing up to adopt.
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