Original: Pedro Solimano, DLNews
Translated by: Yuliya, PANews
Traditional financial institutions continue to pour into the $238 billion stablecoin market, accelerating the restructuring of industry competition. Fidelity Digital Assets recently joined this track, marking a substantial layout by mainstream asset management institutions. Here are the strategic dynamics and product progress of current market participants:
Fidelity
According to informed sources, Fidelity Digital Assets, the crypto business division of Fidelity Investment Group, has launched stablecoin research and development testing. With managed assets of $5 trillion, its entry validates traditional asset management giants' recognition of the stablecoin market. This development comes as the U.S. Senate reviews a milestone regulatory bill, and a policy breakthrough may further activate market potential.
PayPal
PayPal launched its stablecoin PYUSD in 2023, pioneering stablecoin integration into its platform. Users can buy, transfer, or use PYUSD through the company's app or website, just like using regular PayPal balance. The stablecoin currently has a market cap of $791 million.
Robinhood
Benefiting from rapid crypto asset trading growth, Robinhood achieved profitability in the fourth quarter, with cryptocurrency sales increasing by 700%. In November 2024, Robinhood collaborated with crypto exchange Kraken and research firm Galaxy Digital to launch USDG stablecoin, which operates on the "Global Dollar Network" and offers yield returns to holders. Its market cap quickly grew from $29 million at the beginning of the year to $166 million.
Ripple
Ripple launched its RLUSD stablecoin in December last year. Ripple, which has long used XRP for cross-border payments, plans to use this new currency to "provide stability and liquidity to its ecosystem". Ripple CEO Brad Garlinghouse stated at RLUSD's release that with increasingly clear U.S. regulations, stablecoins like RLUSD are expected to gain broader adoption. The stablecoin's market cap has grown to $176 million, a small fraction of XRP's $140 billion market cap.
World Liberty Financial
Trump's crypto empire has also set its sights on the stablecoin domain. On March 25, the DeFi platform under his family, World Liberty Financial, released details of its USD1 stablecoin. The stablecoin will be backed by short-term U.S. Treasury bonds, USD deposits, and other cash equivalents, initially issued on Ethereum and BNB Chain.
Standard Chartered Bank
The British bank with deep influence in Asia, Standard Chartered, is developing a stablecoin pegged to the Hong Kong dollar. In February this year, the bank announced collaboration with Hong Kong Web3 company Animoca Brands and telecom provider HKT to develop the stablecoin. The stablecoin has not yet been officially launched to the market.
Market Size May Double This Year
Market data shows that stablecoin transaction volume in 2024 reached $16 trillion, with total market cap climbing to $238 billion. Although Tether (USDT) and Circle (USDC) still occupy 85% market share, Bernstein analysts predict the market size will double this year. Moreover, researchers from the Atlanta Fed's special report indicate that such digital tools are playing an increasingly important infrastructure role in trillion-dollar payment systems. As regulatory frameworks are perfected and technical standards are established, the stablecoin market may usher in a new round of explosive growth.
