The cryptocurrency world has unexpectedly entered what Paradigm founder Matt Huang calls the "stablecoin supercycle." Circle—the first publicly traded stablecoin company—has seen its stock surge from $31 to nearly $300 since its June 5 IPO, delivering a 10x return in under two weeks. This explosive growth has reignited global interest in stablecoin markets.
The Stablecoin Revolution
Born in 2014, stablecoins address cryptocurrency volatility by pegging their value to assets like the US dollar. Tether's USDT pioneered this space, followed by USD-backed alternatives like USDC. These digital assets now serve as foundational tools for DeFi, cross-border payments, and RWA (real-world asset) tokenization.
Key market insights (June 2025):
- Total market cap: $252.9B
- Dominant players: USDT (62% share), USDC (23% share)
- Annual transaction volume: $20.2T (40% of Visa's global payment volume)
Corporate Arms Race
US Tech Titans:
👉 PayPal expands PYUSD to Stellar network for remittances, while Walmart/Amazon explore private stablecoins to bypass card networks. Visa now supports USDC settlements through its payment rails.
China's Strategic Play:
Ant Group and JD.com pursue Hong Kong stablecoin licenses, with JD planning a multicurrency stablecoin for cross-border commerce. The PBOC simultaneously advances its digital yuan (e-CNY) project.
The Geopolitical Dimension
US Treasury Secretary Besant frames dollar-pegged stablecoins as tools to "reinforce dollar hegemony," while China tests offshore RMB solutions via Hong Kong. Regulatory clarity emerged through:
- America's GENIUS Act (June 2025)
- Hong Kong's Stablecoin Ordinance (effective August 2025)
Future Outlook
Stablecoins could:
- Slash cross-border payment costs by 90%
- Enable 24/7 real-time settlements
- Become primary tools for trade finance
However, risks remain—UST's collapse reminds users to scrutinize reserve audits and governance structures. As Cobo's Alex Zuo notes: "Stablecoins won't replace traditional payments but will create parallel financial infrastructure."
FAQ
Q: Why are corporations rushing into stablecoins?
A: They combine regulatory compliance with blockchain efficiency, offering cheaper/faster global payments than traditional systems.
Q: How does Hong Kong's approach differ from mainland China's?
A: Hong Kong serves as China's testing ground for offshore stablecoins, while the mainland focuses on state-controlled digital yuan.
Q: What makes USDC different from PYUSD?