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Stablecoins market cap hits record 261B as CBDCs face global divide

While the stablecoin market accelerates under new U.S. regulation, central banks remain split over digital currency adoption.

by Tolani Fatusi
1 week ago
in Crypto News
Reading Time: 4 mins read
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Stablecoins hit record $261B market cap as CBDCs face global divide

Stablecoins hit record $261B market cap as CBDCs face global divide

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The global stablecoin market reached an all-time high of $261 billion in July 2025, according to Coindesk’s latest Stablecoins & CBDCs Report. This marks the 22nd consecutive month of growth, even as stablecoins’ relative market dominance declined due to a broader crypto rally.

The 4.87% increase from June reflects the continued integration of stablecoins into digital finance and cross-border settlements. However, their overall share of the crypto market dipped to 6.64%, as major assets like Bitcoin and Ethereum outperformed in a risk-on environment.

“The market’s direction shows that stablecoins are now a core pillar of digital asset infrastructure,”,  Tina Nguyen, senior policy analyst, Digital Finance Forum.

Meanwhile, non-USD-pegged stablecoins, including euro and ruble backed tokens, surpassed $1 billion in total market cap for the first time, signaling a diversification trend in global liquidity preferences, though they still account for less than 1% of the total stablecoin ecosystem.

U.S. introduces federal stablecoin regulation with GENIUS Act

July also brought regulatory clarity in the United States, where President Donald Trump signed the GENIUS Act into law on July 18, establishing the country’s first federal framework for “payment stablecoins.”

The legislation mandates that all qualifying stablecoins must be backed 1:1 by cash or U.S. Treasuries, with monthly reserve audits and public disclosures now required.

“The GENIUS Act is a regulatory milestone, it sets a precedent for stablecoin credibility while prioritizing financial stability,”, Janet Morales, Director of Policy Affairs, National Blockchain Council.

Analysts say the law could enhance investor confidence while offering a blueprint for other jurisdictions. With fiat-backed tokens now officially defined under federal oversight, policymakers expect capital inflows into stablecoin providers with transparent reserve models.

New players surge as global adoption widens

Among top-performing stablecoins, USDf from Falcon Finance surged by 121%, reaching a $1.07 billion market cap and entering the top ten. The company attributes its rapid growth to a yield-bearing on-chain model, along with plans to integrate gold redemption and real-world asset collateral by 2027.

Ethena Labs’ USDe also expanded significantly, climbing 43.5% to $7.6 billion, buoyed by a $260 million token buyback and deeper institutional partnerships.

The Tron blockchain continues to dominate in volume, with over 50% of all USDT supply now hosted on the network. Additionally, a ruble-pegged token, A7A5, gained $467 million in market cap within weeks of its June debut, highlighting demand for local-currency digital instruments.

These developments underscore a key shift: stablecoins are not only being used for crypto trading but also increasingly for real-world transactions, regional liquidity, and emerging fintech applications.

CBDC progress remains uneven across global economies

While stablecoins show momentum, central bank digital currency (CBDC) initiatives presented a more fragmented picture in July.

In China, the digital yuan continued its phased rollout, expanding to new free trade zones on July 4. The Bank of Canada released a detailed research roadmap for a potential retail CBDC, showing serious engagement with technical feasibility.

The European Central Bank (ECB) advanced its timeline for the digital euro, with ECB President Christine Lagarde reiterating support for an October 2025 pilot.

“The digital euro will strengthen Europe’s financial autonomy and modernize monetary infrastructure,” Lagarde said in a public address.

However, backlash continues to mount in Western democracies.

In the United States, Representative Tom Emmer reintroduced the CBDC Anti-Surveillance State Act on June 29, warning that a retail digital dollar could “pave the way for unwarranted state oversight of private transactions.”

Across the Atlantic, the Bank of England reportedly paused further work on the so-called Britcoin project. Political uncertainty, concerns over slow adoption, and unresolved privacy questions have cast doubt on the UK’s CBDC direction.

“CBDCs must be designed with civil liberties at the forefront, or risk public rejection,”,  Amira Clarke, fintech policy advisor, Open Digital Trust Initiative.

Outlook: stablecoins surge ahead as CBDCs face trust challenges

The data from July illustrates a growing divergence between private-sector digital currencies and state-backed initiatives. While stablecoins flourish under clearer regulation and expanding use cases, central banks continue to grapple with technical, political, and privacy-related hurdles around CBDCs.

As policymakers debate the future of digital finance, the stablecoin sector is gaining both momentum and legitimacy, with implications for monetary sovereignty, regulatory harmonization, and financial inclusion.

The months ahead may reveal whether central banks can keep pace with a rapidly evolving decentralized financial landscape, or risk being left behind.

Tags: $261B milestoneCBDC failurecentral bank digital currency challengesglobal crypto adoptionmonetary policy divideprivate vs sovereign moneystablecoin ETFsStablecoin Market CapUSDT dominance
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Tolani Fatusi

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