Where Money Moves - Edition #18

Stablecoin growth has slowed over the last two weeks with a broader market decline. Nonetheless, institutions, fintechs, funds, and retail investors remain positioned and ready for the next wave of growth.

Why? Because stablecoins are the backbone of today’s crypto markets and the foundation for a new global financial system.

Stablecoin Spotlight: What’s Top of Mind

Stablecoin adoption starts with education.

This week Plasma launched our Learn Centre, the complete guide to digital dollars.  

We have published a series of in-depth articles which cover everything you need to know about stablecoins: Compliance & Regulation; Fundamentals; Markets & Adoption; Technology & Infrastructure; Treasury & Finance; and Payments and Remittances. 

The Plasma Learn Center is where someone can arrive with no prior context and leave with a working understanding of digital dollars, including how they are issued, how reserves are held, how onchain settlement works, and how regulation is evolving.

What’s New with Stablecoins

1️⃣ S&P downgrades Tether stablecoin rating

S&P Global lowered its rating on Tether’s stablecoin. Tether CEO Paolo Ardoino said the firm strongly disagrees with the assessment.

2️⃣ Klarna announces its own stablecoin to launch on Stripe’s blockchain

Buy-now-pay-later lender Klarna announced Klarna USD, a dollar-backed stablecoin that will launch on Stripe’s incubated blockchain.

3️⃣ Tether becomes world’s biggest holder of gold outside of central banks

Tether has become the biggest holder of gold outside central banks, purchasing more gold than all central banks combined over the last two quarters.

In Other News

• Paxos acquired Fordefi for more than $100m to improve its crypto custody and wallet offerings

• Amundi, the largest asset manager in Europe, has tokenised shares in one of its money market funds

• MegaETH refunded participants in its pre-deposit campaign for USDm due to community dissatisfaction with the raise

Stablecoin Adoption Snapshot

1️⃣ Stablecoin Supply & Growth

Stablecoin supply grew over the past two weeks. USD₮ and USDC led the increase, reversing the recent contraction seen across major issuers.

• Total stablecoin supply: $306.78 billion (+0.25% from 30 days ago)

• USD₮ remains dominant: 60.17% market share ($184.6 billion)

• Stablecoins now account for over 1.37% of the US M2 money supply

2️⃣ Adoption Continues to Surge

Stablecoin transaction volume has shrunk over the past two weeks, reflecting lower market activity. Even so, the number of wallets holding stablecoins continues to rise.

• $2.9 trillion in adjusted stablecoin transaction volume over past 30 days (via 1.5 billion transactions)

• 205.7 million wallets hold stablecoins (up 2.76% from 30 days ago)

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

3️⃣ Stablecoin Liquidity by Chain

Over the past week, the stablecoin supply on Ethereum has continued to grow rapidly. Trailing closely with stablecoin growth are Solana and Tron.

• Ethereum’s stablecoin supply increased by more than $1.8 billion over the last week. 

• In the same period, Solana’s and Tron’s stablecoin supply grew respectively by $1.4 billion and $672.5 million.

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.

🔗 Join the Plasma community | Learn more