Cobo Stable Weekly No.11: Stablecoin Summer Is Here — From FUD to Frontlines
Like many new technologies, stablecoins are navigating the space between public debate and practical adoption.
Global payments are undergoing a revolution, and stablecoins are at the heart of this transformation. They're not just reshaping how money moves across borders—they're completely redefining what payments can be. Cobo stands at the cutting edge of this shift, building the full-stack infrastructure that powers next-gen stablecoin solutions: from secure wallet tech to risk control and compliance and yield-generating options that actually make your money work.
Go with Cobo, and you can zero in on building cool stuff and growing your user base, while surfing the stablecoin revolution without the infrastructure headaches.
Stablecoins are following the classic new tech curve: questioned by established players, deployed by builders, and adopted where it matters most.
This week, Airwallex’s founder called the “efficiency” of stablecoins a myth. But that’s missing the point. It’s not about being faster or cheaper — it’s about programmability. Settlement, revenue splits, permissions — all built into the asset itself. That’s not a marginal improvement. It’s a new model. And when incumbents start saying “this is useless,” it usually means they’re feeling the heat.
Meanwhile, Stripe bought Privy to bring stablecoins to the user layer. Shopify enabled USDC for merchants. X integrated Polymarket. The competition isn’t about minting coins anymore. It’s who builds the most useful network around them.
In emerging markets, it’s trust, not tech. Tether’s new Plasma chain wants to wean off Tron. But Tron already owns the street-level USDT rails. Winning isn’t about performance. It’s about local grip.
Some view stablecoins as underwhelming. Others are quietly solving trillion-dollar problems. Schlep? Sure. But this is how it always starts.
Market Overview and Growth Highlights
Stablecoin Total Market Cap Reaches $251.08B
The total stablecoin market capitalization has reached $251.08 billion, reflecting a week-over-week growth of $1.42 billion. In terms of market share, USDT continues to dominate with a 62.14% share, followed by USDC, which holds the second position with a market cap of $60.8 billion (24.22% share).
Blockchain Network Distribution
Top 3 Networks by Stablecoin Market Cap:
Ethereum: $124.632B
Tron: $79.039B
Solana: $11.113B
Top 3 Fastest-Growing Networks (Weekly):
XRPL：+37.82%（RLUSD dominance: 94.32%）
Unichain：+24.84%（USDC dominance: 49.8%）
Filecoin：+20.19%（USDFC dominance:99.45%）
Data Source: DefiLlama
🎯Stripe Just Cracked the Stablecoin Code
Stripe quietly acquired crypto wallet provider Privy this week, and honestly, it's kind of genius.
Here's what they've been building: First they bought Bridge (stablecoin infrastructure), then launched stablecoin business accounts, now they've got Privy's embedded wallets. Put it together and you get the full stack -- settlement rails, business tools, and dead-simple user wallets.
The big insight: Stripe's sitting on millions of merchants worldwide. Imagine paying with USDC at any Stripe-powered store while the merchant just sees regular dollars. That's the "last mile" problem solved.
Privy's wallet-as-a-service is perfect for this -- users get crypto wallets that feel like normal web accounts. No seed phrases, no complexity. Just works.
What's wild is how this flips the script. Instead of crypto companies trying to build mainstream adoption from scratch, a massive payment processor is pulling stablecoins into their existing network. The flywheel effect could be insane.
Stripe's basically saying "we'll hide all the crypto complexity behind APIs you already know." That's probably how stablecoins actually go mainstream -- not through crypto evangelism, but by making the tech invisible.
The pieces are all there now. This might be it.
🎯Plasma: USDT's Bid for Independence
While stablecoins are crypto's clearest product-market fit, dedicated blockchain infrastructure for core assets like USDT remains rare. Plasma is one exception—a high-performance chain built specifically for USDT and stablecoin payments.
Plasma's architecture centers on one goal: pushing stablecoin payments to the limit—zero fees, no additional tokens needed. Users can pay and transfer using only USDT itself, making it a true "first-class citizen" on-chain.
Behind it sits Tether and Bitfinex backing: dedicated channels, custom protocols, Bitcoin-level security anchoring, and a unified native stablecoin USDT₀ that abstracts USDT at the base layer.
Circle took a different path with CCTP, enabling USDC to flow across Ethereum, Solana, Arbitrum and more. But each bridged experience remains limited by the target chain's performance, costs, and complexity. Circle adapts to crypto's multi-chain reality rather than rebuilding it.
Tron's Deeper Moat
Tron's core users aren't DeFi yield farmers seeking cutting-edge tech—they're "street dollar" users needing simple, reliable, cheap tools. For this need, Tron's tech is good enough: fast enough, cheap enough, wallets easy enough.
These business networks often rely on offline interpersonal trust. A new blockchain must replace not just technology but complex social and commercial trust networks. Users lack strong incentives to bear migration costs—learning new wallets, recording seed phrases, changing payment addresses.
Even if Plasma technically surpasses Tron across the board, it can't easily replicate years of accumulated network effects, deep commercial penetration, and solid user habits in specific markets. Without 10x+ comprehensive experience improvements, it's hard to make this efficiently operating ecosystem "move on."
Ground War Required
Beating Tron requires "ground war"—diving deep into Tron-dominated emerging markets to build local connections and trust. Plasma's strategic intent is clear: part of Tether's decentralization strategy while reducing Tron dependence, signaling whether stablecoin infrastructure continues "universal adaptation" or shifts toward "vertical specialization."
But Plasma's real test hasn't begun. Success won't depend on fundraising amounts, but whether it can seize real users and transaction volume from an entrenched king through superior products and grueling market battles. That's the terrifying power of Tron's moat.
🎯Airwallex's Stablecoin Take: Missing the Bigger Picture
Airwallex's Stablecoin Take: Missing the Bigger Picture
Circle's IPO has sparked fresh debate about stablecoins, with Airwallex founder Jack Zhang recently questioning their value in developed markets. His argument centers on fintech already solving cross-border payments efficiently.
While Jack raises valid points about existing payment infrastructure, this perspective might be looking at stablecoins through too narrow a lens. It's a bit like evaluating the iPhone purely on call quality compared to Nokia -- technically accurate but missing the transformative potential.
Jack's core argument is that traditional cross-border payments work well enough. And he's right -- companies like Airwallex have genuinely improved the experience. But stablecoins aren't necessarily competing on speed or cost alone.
The real opportunity lies in programmability.
Traditional cross-border payments, even improved ones, still operate within geographic silos, business hours, and require liquidity middlemen. Stablecoins offer something fundamentally different: a unified, 24/7, dollar-native clearing layer where settlement logic can be embedded directly into the asset.
Think automatic revenue splits, real-time financing, conditional payments -- all without platform dependencies or approval workflows. This isn't about making payments 2% cheaper; it's about rebuilding the rails entirely.
Both traditional fintech and stablecoins have their place in the evolving payments landscape. The most interesting opportunities might actually emerge from companies that can bridge both worlds, combining proven fintech infrastructure with programmable money capabilities.
The debate itself signals how seriously the market is taking digital assets. That's probably bullish for everyone building in this space.
Big Picture
🔮An analysis by Artemis's CEO suggests that if stablecoin issuer Tether went public, it could command a massive $515 billion valuation by applying rival Circle's current 69.3x EBITDA multiple. Tether CEO Paolo Ardoino responded by calling the figure potentially "a bit conservative," citing additional growth potential from the company's expanding Bitcoin and gold reserves. The discussion follows Circle's recent successful IPO, which established a market benchmark for valuing the highly profitable stablecoin business model in a high-interest-rate environment. This potential valuation and Ardoino's commentary hint at a possible public listing for Tether, which would significantly advance institutional acceptance and mainstream integration of stablecoins into the global financial system.
Capital Moves
💰Atticus, a stealth stablecoin finance startup, is reportedly in funding talks led by Anduril CEO Palmer Luckey at a valuation between $1.5 and $2 billion. If successful, the deal would make Atticus the first new stablecoin "unicorn" of the year, highlighting the increasing convergence of digital assets and traditional finance. The company, founded by Owen Rapaport and Jacob Hirschman with Haun Ventures as an early backer, represents a significant bet from prominent tech and defense industry capital that stablecoins are approaching mainstream adoption. Luckey's involvement signals growing confidence from established tech leaders in the sector's potential.
💰Noah, a stablecoin payments company co-founded by Adyen's former EVP of Global Sales Thijn Lamers, has launched with $22 million in seed funding to build a global clearing network using USDC. The company offers enterprise-grade payment solutions and APIs for 24/7 programmable value transfer that bypasses traditional banking infrastructure. This move by a senior executive from a payments giant represents a major paradigm shift from "optimizing the old rails" of traditional finance to "building new rails" with stablecoin technology. The involvement of seasoned industry leaders brings critical commercial credibility to the space, signaling that stablecoin infrastructure is maturing to become a core component of next-generation global finance.
💰Following Circle's (CRCL) stock price nearly quadrupling since its recent IPO, ETF issuers Bitwise and ProShares have both filed for related fund products. The proposed ETFs showcase different strategies: ProShares aims to offer a leveraged fund providing twice the stock's daily return, while Bitwise plans a covered call ETF to generate income from the shares. This swift action from major firms highlights strong institutional interest in gaining exposure to a leading stablecoin issuer and marks deeper integration of crypto companies into traditional financial markets. The investor enthusiasm reflects confidence in USDC's market position and the perceived stability and growth potential of the stablecoin business model within the broader crypto industry.
💰UK fintech OpenTrade has secured $7 million in funding with a16z crypto participation, bringing its six-month total to $11 million for its "yield-as-a-service" platform. The company enables fintech apps and neobanks to offer end-users up to 9% yield on USD and EUR stablecoins through a B2B2C model targeting high-inflation countries. OpenTrade specifically addresses wealth preservation needs where local currencies are devaluing and traditional dollar account access is limited. By empowering local fintechs in regions like Latin America, the platform creates a new market for DeFi yields backed by real-world assets while providing inflation-resistant financial products.
💰Tether just dropped $89.2 million for a 34% stake in precious metals firm Elemental Altus, calling it part of a "dual-pillar strategy" alongside their Bitcoin holdings. CEO Paolo Ardoino says this backs their Tether Gold token and future commodity plays. The real story is regulatory prep - stablecoin issuers are scrambling to diversify reserves before new U.S. rules hit. Tether's hedging crypto exposure with traditional safe-haven assets, basically saying "we're ready for whatever compliance framework comes next."
Regulation & Compliance
🏛️Ant International plans to apply for stablecoin issuance licenses in Hong Kong, Singapore, and Luxembourg to enhance its cross-border payment and treasury management services. The initiative will leverage its enterprise blockchain platform Whale, which already processes a third of Ant Group's over $1 trillion in annual global transactions using advanced privacy-preserving technology. This regulated stablecoin push represents a significant growth engine for Ant International ahead of a potential spin-off IPO, following financial giants like PayPal into digital assets. The entry signals deeper fusion between traditional finance and crypto, potentially bringing major changes to global payments for its vast network of corporate clients and banking partners.
🏛️South Korea's ruling Democratic Party has submitted a "Digital Asset Basic Act" to parliament, proposing a framework allowing qualified corporations to issue their own stablecoins with capital requirements and full reserve backing. The bill aims to enhance transparency and competition in the country's crypto market, potentially positioning South Korea as a hub for stablecoin innovation in Asia. This represents a major regulatory shift that could introduce new competition into the country's advanced digital payments sector. The proposal reflects a broader global trend of governments embracing rather than restricting stablecoin development, which could further encourage institutional adoption across the region.
🏛️Hong Kong's new stablecoin regulations establish high barriers to entry with a HK$25 million capital requirement, effectively favoring large institutions and tech giants like JD.com that gained early advantages through the regulatory sandbox. While this makes direct stablecoin issuance nearly impossible for startups, significant opportunities exist in the surrounding service ecosystem. Small teams are advised to adopt a "sell shovels" strategy, focusing on essential niches like compliance-as-a-service, payment infrastructure, cross-chain bridging, and reserve asset management. This approach allows them to capitalize on the growing stablecoin market without directly competing with giants, by building critical infrastructure that connects tradfi and Web3.
Market Adoption
🌱Payments giant Stripe is in talks with banks to explore stablecoin applications, marking a shift toward using them as mainstream payment rails rather than just crypto trading tools. The initiative follows Stripe's $1.1 billion acquisition of Bridge and new product launches, betting that stablecoins will dramatically reduce cross-border transaction costs. Competitors like PayPal and Visa are similarly pushing into the space as regulatory clarity increases in the US and EU. Stripe's leadership is warning financial centers to accelerate their regulatory frameworks or risk falling behind in this technological transformation.
🌱Deutsche Bank is actively evaluating stablecoin strategies, weighing options from issuing its own token to developing tokenized deposit solutions for payments. The exploration builds on clearer EU and US regulatory frameworks and the bank's existing investments in platforms like Partior and BIS's Project Agorá. This reflects growing sector-wide confidence as real-world adoption accelerates, with J.P. Morgan's Kinexys network now processing over $2 billion daily. As competitors like Santander and ING also fast-track their digital asset plans, blockchain integration into core banking infrastructure is rapidly gaining momentum.
🌱Société Générale's crypto division has launched USD CoinVertible (USDCV), a US dollar stablecoin deployed simultaneously on Ethereum and Solana blockchains. This follows the bank's successful 2023 Euro stablecoin launch and aims to create a 24/7 bridge for on-chain settlement, cross-border payments, and FX transactions with BNY Mellon as reserve custodian. The move signals accelerating adoption of blockchain technology for core financial services among traditional institutions. The dual deployment on Ethereum and Solana specifically highlights institutional demand for high-performance blockchains to support diverse financial applications.
🌱Tech giants including Apple, X, Airbnb, and Google are reportedly in early talks to integrate stablecoins for lower transaction costs and more efficient international payments. This marks a significant shift where traditional tech companies view stablecoins as mainstream payment infrastructure rather than speculative tools, enabled by clearer regulatory environments. X's partnership with prediction market Polymarket exemplifies this trend, embedding crypto-native applications directly into social platforms for high-frequency micro-transactions. The convergence suggests stablecoins are expanding beyond niche markets to become core infrastructure for a decentralized social finance ecosystem, aligning with visions like Musk's "super app" for X.
🌱Plasma has announced a strategic partnership with DeFi leader Aave, which will become a day-one launch partner on the Plasma network and integrate its GHO stablecoin. This collaboration combines Aave's robust lending protocol--representing over 20% of all DeFi liquidity--with Plasma's scalable infrastructure to extend bank-free lending services globally. The partnership targets institutions and the billions of people unserved by traditional finance, leveraging decentralized technology to create more inclusive financial infrastructure. By addressing unmet global credit demand, the initiative represents a significant step toward mainstream DeFi adoption beyond current crypto-native users.
🌱U.S. Bancorp, the fifth-largest U.S. bank, is actively exploring its role in the stablecoin sector, considering options from launching its own token via partnership to providing infrastructure services. This renewed interest is driven by a more favorable pro-crypto political climate under the Trump administration, which has also revived the bank's institutional crypto custody business. The move reflects a broader trend of traditional financial institutions re-evaluating digital asset strategies as stablecoin markets grow and regulatory frameworks advance. However, CEO Gunjan Kedia noted that with 90% of stablecoin volume still confined to crypto-to-crypto trades, their true integration into traditional finance remains a future milestone.
🌱Shopify just started rolling out USDC payments on Coinbase's Base network for select merchants, with plans to hit all Shopify Payments users by year-end. Merchants can accept on-chain USDC and get settled in local currency without FX fees, plus there's a planned 1% cashback for customers. The whole thing runs on a new open-source protocol they built with Coinbase. This is basically Shopify saying "we're making stablecoin payments as normal as credit cards" and could become the new standard for global e-commerce infrastructure.
🌱Crypto payment provider Conduit just partnered with Brazil's Braza Group to launch real-time FX swaps using stablecoins for Brazilian Real, USD, and Euro. Instead of waiting days through SWIFT, settlements now take minutes. This tackles Brazil's notoriously expensive and slow legacy FX systems head-on, offering Latin America's biggest economy a faster, cheaper payment rail. It's exactly the kind of stablecoin infrastructure play we'll see replicated across emerging markets where traditional banking rails are broken.
🌱DTCC Goes Stablecoin. The Depository Trust & Clearing Corporation, the behemoth that processes quadrillions in securities annually, is reportedly building a stablecoin project. This is massive - DTCC is basically the invisible backbone of traditional finance, so them getting into digital assets could be the institutional adoption catalyst everyone's been waiting for. The timing makes sense with major banks also exploring dollar-pegged tokens and potential U.S. regulatory clarity on the horizon. When the plumbing of Wall Street starts experimenting with crypto rails, you know something fundamental is shifting.
New Launches
👀Kik founder Ted Livingston has launched Flipcash on Solana, a zero-fee global payments app that replicates the simplicity of physical cash digitally. Users make instant transfers by scanning virtual cash codes, with all transactions powered by USDC stablecoin rather than Livingston's previous Kin token experiment. The app targets travel and remittances by combining cash-like simplicity with borderless digital reach. Flipcash's use of regulated stablecoins and interest-earning model represents a notably more mature approach to consumer crypto payments than earlier attempts.
👀Tether has released an open-source Wallet Development Kit designed to give AI agents and robots financial autonomy by managing Bitcoin and Tether tokens without human oversight. The move represents Tether's strategic bet on a decentralized, AI-driven economy where autonomous systems can handle their own financial operations. Social platform Rumble is already building on the kit, demonstrating early mainstream adoption. This development could significantly broaden non-custodial wallet usage beyond crypto enthusiasts into everyday applications where AI agents need independent financial capabilities.