Where Money Moves - Edition #15

Stablecoin growth continued its rise 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

BlackRock, the world’s largest asset manager, plans to update its money market fund to accommodate stablecoin issuers under the GENIUS Act. The vehicle in focus is the Blackrock Select Treasury Based Liquidity Fund (BSTBL).

BSTBL is being tuned to hold reserves that meet the GENIUS Act’s high-quality, high-liquidity standards. The fund will add overnight repurchase agreements, shorten the maturity profile of US Treasury holdings, and remove agency exposures to increase day-to-day liquidity.

BlackRock’s stated aim is clear. It wants BSTBL to be a reserve asset manager of choice for the digital payments ecosystem and a natural venue for payment stablecoin issuers.

The timing aligns with the market’s trajectory. With stablecoin issuance projected to reach $2T by 2028, BlackRock is positioning to serve issuers at scale and deepen its role in the digital asset ecosystem.

What’s New with Stablecoins

1️⃣ Global banks explore G7-pegged stablecoins

Major banks including Deutsche Bank, Bank of America Goldman Sachs, BNP Paribas and UBS are exploring the issuance of stablecoins focused on G7 currencies. The group is already in contact with regulators in the relevant markets.  

A consortium including Deutsche Bank, Bank of America, Goldman Sachs, BNP Paribas, and UBS is evaluating stablecoins pegged to G7 currencies. The group is in active dialogue with regulators across relevant markets and is assessing issuance, compliance, and settlement models.

2️⃣Japan’s three largest banks to jointly issue stablecoins

Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group will jointly issue stablecoins. They plan to start with a yen-pegged coin, with a potential dollar-pegged coin to follow.

3️⃣ Bridge seeks national bank trust charter for stablecoin services

Bridge has applied to a federal banking regulator for a national bank trust charter. If approved, Bridge could offer issuance, management, and custody of stablecoins in a compliant framework aligned with the GENIUS Act.

In Other News

• Citi Ventures makes a strategic investment into BVNK

• Paxos inadvertently minted $300T PYUSD on Ethereum and immediately burned the surplus after identifying the error

• YZi Labs, formerly Binance Labs, invests $50M into the seed round of stablecoin payment company Better Payment Network 

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: $304.6 billion (+4.83% from 30 days ago)

• USD₮ remains dominant: 59.7% market share ($181.9 billion)

• Stablecoins now account for over 1.37% 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.

• $3.9 trillion in adjusted stablecoin transaction volume over past 30 days (via 1.4 billion transactions)

• 196.7 million wallets hold stablecoins (up 2.2% from 30 days ago)

• 117.4 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 $4.1 billion, remaining dominant in terms of market share for supply at 55%. Tron follows with 25.7% of market share.

• Plasma now has more than $6.5 billion in stablecoin liquidity, equating to a market share of 2.1%.

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, including Plasma. 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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