Where Money Moves - Edition #10

Stablecoin growth hit new highs once again during the past two weeks, with institutions, fintechs, funds, and retail investors gearing up for the next wave of growth.

Why? Because stablecoins are more than just digital dollars; they are the backbone of today’s crypto markets and the foundation for a new global financial system.

Stablecoin Spotlight: What’s Top of Mind

The XPL public sale has concluded with a total of $373 million committed to purchasing XPL.

The XPL public sale began on Thursday, 17th of July and concluded on Monday, 28th July with $323+ million overcommitted, representing more than 7x in oversubscription on the targeted $50 million raise. 

Approximately 99.6% of the $50 million allocation was purchased via a guaranteed allocation, meaning the $323 million of oversubscribed capital was competing for just 0.4% of the XPL supply available in the public sale.

The $323 million oversubscribed capital was refunded and all allocations were finalised one day later.

The next major milestone for Plasma is the launch of our mainnet beta. The network will launch with $1 billion in stablecoin TVL; Plasma will be the first chain to ever achieve this. 

What’s New with Stablecoins

1️⃣ First Hong Kong stablecoin issuer licenses expected early next year

The Hong Kong Monetary Authority told a media briefing that the first Hong Kong stablecoin issuer licenses are expected to be granted early next year. This followed Hong Kong’s Stablecoins Ordinance going live on 1st August, providing regulatory clarity for stablecoin issuers, offers of stablecoins and related market integrity and conduct; the Ordinance provides a transition period for issuance only. 

2️⃣ ECB warns rise of USD pegged stablecoins could weaker European sovereignty 

The European Central Bank (ECB) has warned that the rise of USD pegged stablecoins could undermine the ECB’s control over monetary policy. It suggested the fast adoption of these stablecoins could leave Europe in a similar situation to “dollarized” emerging economies.  

3️⃣ South Korean ruling party in stablecoin fight with its Central Bank 

South Korean lawmakers have proposed legislation to allow companies with as little as KRW 500 million ($360,000) in equity capital to issue won-based stablecoins, but its central bank is concerned this could trigger large capital outflows. Approximately one third of South Korea’s 52 million people invest in digital assets, making it one of the most thriving crypto markets in the world.

In Other News

• China Asset Management via its Hong Kong arm launches world's first renminbi tokenised money fund

• AllUnity launches EURAU: claimed to be the first Euro-backed stablecoin issued under the EU’s Markets in Crypto-Assets (MiCA) regulation and licensed as electronic money by Germany’s BaFin

• Over the last month, USDe, issued by Ethena, surged by $4.4 billion, representing a 78.7% month on month supply increase.

Stablecoin Adoption Snapshot

1️⃣ Stablecoin Supply & Growth

Stablecoin supply continues to grow unabated, with USD₮ remaining the undisputed leader by market share. This continues the surge in stablecoin supply that has remained unbroken since October 2024.

• Total stablecoin supply: $263 billion (+4.82% from 30 days ago)

• USD₮ remains dominant: 63.1% market share ($164.2 billion)

• Stablecoins now account for over 1.19% of the US M2 money supply

2️⃣ Adoption Continues to Surge

Stablecoin transaction volume has continued to grow over the past two weeks, alongside a steady increase in new wallets holding stablecoins.

• $2.6 trillion in stablecoin transaction volume over past 30 days (via 1.3 billion transactions)

• 187.4 million wallets hold stablecoins (up 2.92% from 30 days ago)

• 111.5 million wallets hold Tether's stablecoin, making it the clear market leader

3️⃣ Stablecoin Liquidity by Chain

Over the past two weeks, the stablecoin supply on Ethereum has continued to grow rapidly. 

• Ethereum grew stablecoin supply over the past week by $2.6 billion, remaining dominant in terms of market share for supply at 52.2%. Tron follows with 31.4% of market share.

• Another notable change is Solana’s continued loss of stablecoin liquidity. Over the last month, Solana has lost $0.4 billion in stablecoin supply.

All data and charts in the Stablecoin Adoption Snapshot are courtesy of our partner, Token Terminal. Please note that while the underlying data points are accurate, certain chart segments may appear incomplete as Token Terminal continues integrating new networks. For fully verified data sets, refer to the figures provided throughout this newsletter.

Plasma: Where Money Moves Next

Stablecoins represent a step change in financial technology - a system that is borderless, permissionless, and cost-effective by design. Major countries, companies, and institutions, both traditional and modern, will demand accelerated adoption to stay ahead.

That’s why we’re building Plasma. As stablecoins transition from crypto-native assets to a global money standard, they need faster, cheaper, more reliable and more programmable settlement infrastructure. Plasma is designed from the ground up for this future.

Whether you're a developer, investor, or simply watching where money moves next, Plasma is where the future is being built.

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