Author: Aaron Wood, CoinTelegraph; Translated by: Tao Zhu, Jinse Finance
With the growing interest from institutional investors and the gradual improvement of stablecoin legal frameworks, the sector is thriving, with five major projects expected to expand market scale in the near future.
In the EU, the Markets in Crypto-Assets (MiCA) regulatory scheme has fully taken effect, providing clear guidelines for stablecoin issuers to help them enter the European market. In the United States, the STABLE Act and GENIUS Act aimed at establishing rules for stablecoins are currently under congressional review.
As a result, major payment companies like Mastercard and Visa are increasing their support for stablecoin systems, and the emergence of new coins is driving up the overall market capitalization of stablecoins.
Here are five key stablecoin initiatives expected to drive cryptocurrency adoption.
Tether to Restart in the United States
Stablecoin giant Tether plans to restart in the United States by launching a USD-based stablecoin.
USDT is already a globally recognized stablecoin, providing liquidity for cryptocurrency trading pairs on numerous exchanges.
However, Tether has faced regulatory challenges due to its reserve proof, financial transparency, and anti-money laundering issues.
On April 30, Tether CEO Paolo Ardoino announced in a CNBC interview that the company plans to launch a rebranded stablecoin in the United States, distinguishing it from its ubiquitous international stablecoin. "Domestic stablecoins are different from international stablecoins," he stated.
Tether occupies the largest market share in stablecoins. Source: Nansen
Under the pro-crypto government of US President Donald Trump, US exposure to cryptocurrencies has been expanding, which will enable Tether to enter the US financial market.
Trump Enters USD Market with USD1
In early March, the Trump-related crypto project World Liberty Financial (WLFI) launched its USD-backed stablecoin USD1 on the BNB Chain and Ethereum.
According to CoinMarketCap data, the coin's market cap has exceeded $2 billion at the time of writing.
Previously, some notable crypto projects have used the president's personal brand as a marketing tool, such as TRUMP and WLFI meme coins launched before Trump's inauguration.
Trump's potential influence on stablecoin policy has led a group of US senators to call for an investigation into his personal interests in the project, citing a clear conflict of interest.
Letter requesting investigation. Source: Senator Schiff
Custodia and Vantage Bank Launch Bank-Issued Stablecoin on Ethereum
Two US banks - the crypto-friendly Custodia Bank and Texas-based Vantage Bank - have partnered to issue the first bank-issued stablecoin in the United States, United Kingdom, and Europe.
On March 25, Custodia announced the tokenization of US dollar demand deposits as an ERC-20 standard token called Avit on the Ethereum blockchain.
Custodia CEO and crypto advocate Longing stated that Avit is "true dollars" because it tokenizes funds customers can withdraw on demand, similar to checking account deposits.
Stripe Testing Stablecoin Product
On April 28, Stripe CEO Patrick Collison announced that their global payment platform is developing a USD-based stablecoin product for use outside the United States.
Previously, the company was approved to acquire the stablecoin payment network Bridge for $1 billion in October 2024 and completed the acquisition in February 2025.
Bridge was founded in 2022 by two former Coinbase executives, Zach Abrams and Sean Yu, competing with companies using the SWIFT global payment system.
The stablecoin plan is the latest development in the company's expanding cryptocurrency initiatives. After facing setbacks in Bitcoin support in 2014, the company began seriously rebuilding its crypto team in 2021. On October 9, 2024, they opened USDC support to users in 70 countries.
UAE's Largest Bank to Issue Stablecoin
Abu Dhabi Developmental Holding Company and First Abu Dhabi Bank (FAB) collaborated on April 28 to launch a dirham-backed stablecoin.
According to The National, FAB, the largest bank in the UAE, will issue this stablecoin on the ADI network after obtaining central bank approval.
The ADI network is a project of the Abu Dhabi ADI Foundation, a non-profit organization created by a local holding company, Sirius International Holding, with a market value of $243 billion.
Both companies claim the stablecoin will have a "significant impact" across various industries including finance, commerce, and trade.
Visa, SBI, and Mastercard Increase Stablecoin Support
New stablecoin issuances are accelerating, with payment companies, banks, and financial institutions increasing their support.
On April 28, international payment giant Mastercard partnered with OKX to expand its stablecoin card options, allowing cardholders to use stablecoins through a Mastercard associated with a prominent crypto company.
Two days later, on April 30, Visa announced a partnership with Stripe and Bridge to offer stablecoin payment services on its Latin American network, initially launching in Argentina, Colombia, Ecuador, Mexico, Peru, and Chile.
SBI VC Trade, the cryptocurrency subsidiary of Japanese financial group SBI, stated that it is preparing to increase support for USDC after local regulators relaxed restrictions on foreign stablecoins. Upon formal approval, the trading platform will become one of the first in Japan to offer USDC cryptocurrency trading.
SBI VC Trade CEO Tomohiko Kondo demonstrates the company's process of obtaining regulatory approval. Source: Tomohiko Kondo
Global regulators and payment providers are actively embracing stablecoins. US legislators have not yet voted on the aforementioned crypto bills, but if the stablecoin framework is passed, adoption rates are expected to significantly increase as businesses can enter a large financial market with clear guidelines.
