Where Money Moves - Edition #12

Stablecoin growth pushed higher again over the last 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

Plasma has partnered with Binance Earn to launch the first fully onchain USD₮ yield product available through the Binance platform. This is a pivotal moment as stablecoin infrastructure transcends from early adoption and reaches hundreds of millions through the world’s largest USD₮ venue.

Binance Earn operates within a platform that is home to more than 280 million users and over $30B in USD₮, representing the largest and most liquid dollar market in digital assets. Every day, Binance moves billions of dollars through banks, peer-to-peer payment channels, physical cash shops, and other critical payment networks worldwide. Partnering with Binance Earn is essential to our vision of making global financial payments universally accessible. 

This campaign places Plasma’s onchain USD₮ yield directly into the environment where hundreds of millions already allocate assets. There is no new account to create and no unfamiliar interface to navigate. The transition is seamless and the market impact is immeasurable.

Plasma’s campaign with Binance opened on 20 August and was fully subscribed just over a week later. With more than 30k people participating and $1B in TVL subscribed to the onchain USD₮ yield product, this marks one of the largest Earn launches in Binance’s history.

Following our campaign with Binance Earn, Plasma is set to launch with over $2B USD₮ in day one stablecoin TVL.

What’s New with Stablecoins

1️⃣ Tether hired former White House crypto policy adviser Bo Hines to help US expansion

Tether has appointed former White House crypto policy advisor, Bo Hines, to advise on digital assets and US market strategy, as it seeks to engage with policymakers and industry groups to expand its presence in the US.

2️⃣ US banks challenge stablecoin regulation due to fears of outflows 

US banking lobbies including the American Bankers Association, the Bank Policy Institute and the Consumer Bankers Association have complained that crypto exchanges can indirectly offer interest and rewards to stablecoin holders, an offer which is outlawed for issuers under The Genius Act.  

3️⃣ China’s State Council to consider yuan-backed stablecoins to compete with US

China’s State Council will reportedly review and potentially approve a roadmap for yuan-backed stablecoins later this month.

In Other News

• Tether announced it will expand native Bitcoin stablecoin support by launching on RGB, a next generation protocol for issuing digital assets on Bitcoin

• Rain announced a $58M Series B funding round to provide enterprise grade infrastructure for stablecoin-powered payments 

• JPYC announced it will issue the first yen-backed stablecoin later in the year after receiving a license last week

Stablecoin Adoption Snapshot

1️⃣ Stablecoin Supply & Growth

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

• Total stablecoin supply: $280.1 billion (+6.73% from 30 days ago)

• USD₮ remains dominant: 60.1% market share ($168.3 billion)

• Stablecoins now account for over 1.27% 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.

• $3 trillion in stablecoin transaction volume over past 30 days (via 1.2 billion transactions)

• 190.5 million wallets hold stablecoins (up 1.72% from 30 days ago)

• 113.1 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 last week by more than $6.5 billion, remaining dominant in terms of market share for supply at 54.5%. Tron follows with 28.7% of market share.

• Much of the growth seen on Ethereum in the last fortnight has been driven by Circle minting USDC on the network. This represents a significant injection of USDC supply, which has not occurred at this scale since Circle’s IPO.

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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