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Where Money Moves - Edition #2

Circle's IPO, STABLE Act progress, and more

Author

Nathan Lenga
April 08, 2025

Tariffs are on the rise, but stablecoins continue to flow. Whether shielding capital from currency risk or unlocking new financial opportunities, stablecoins are rewriting the rules of how, and where, money moves.

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. In short, understanding where stablecoins are today helps reveal where modern finance is headed next. 

Stablecoin Spotlight: What’s Top of Mind

Circle, the issuer of USDC, filed an S-1 with the SEC for an IPO, although the offering has since been delayed. Had it proceeded, Circle would have been the first major stablecoin issuer to go public, highlighting the established role of stablecoins in the financial system.

USDC remains the second-largest dollar-backed stablecoin by market cap, trailing Tether’s USD₮. While its reserves and compliance measures are acknowledged by some institutional players, Circle’s track record includes notable issues. USDC experienced a brief depeg during the 2023 banking crisis, and according to its S-1 filing, a substantial portion of Circle’s revenue from US Treasury bills is allocated to its distribution partners.

These developments underscore significant challenges ahead. Achieving widespread stablecoin adoption requires more than regulatory clarity. It demands robust integration, reliable payment experiences, and a distribution network that minimizes hidden costs. These elements remain far from fully realized.

What’s New with Stablecoins

In a 32-17 vote, the U.S. House Financial Services Committee officially advanced the STABLE Act, which is aimed at creating a comprehensive regulatory framework for how stablecoins are issued and circulated in the US. The legislation sets guidelines for reserve management, issuer transparency, redemption rights, and federal oversight, and will now head to a full House vote.

Recent US-led tariffs and geopolitical uncertainty have driven a surge in investor demand for stablecoins and other tokenized real-world assets (RWAs). Unlike purely fiat-backed tokens, stablecoins offer exposure to tangible assets like tokenized treasury bonds or real estate. Expect RWAs to play an increasingly prominent role as investors seek stability amidst geopolitical friction.

In a higher interest rate environment, capital efficiency and return generation matter. Stablecoin users may not be satisfied with simple digital cash equivalents in the long run, and JPM expects more investors to demand onchain dollar instruments that combine the price stability of fiat-backed tokens with embedded returns.

Japan’s second-largest bank, Sumitomo Mitsui Banking Corporation, is partnering with Ava Labs to launch its own yen-backed stablecoin. While Japan has historically approached digital assets conservatively, this move highlights a meaningful shift: traditional banking institutions now view stablecoins not just as an experiment, but as an integral component of their strategic future.

In Other News

Stablecoin Adoption Snapshot

1️⃣ Stablecoin Supply & Growth

Stablecoin supply continues to grow unabated, with the market leader, USD₮, increasing its market share by 6.75% over the past two weeks amidst major geopolitical shifts and consequent market movements.

  • Total stablecoin supply: $230.1 billion (+1.4% from 30 days ago)

  • USD₮ remains dominant: 63.1% market share ($145.2 billion)

  • Stablecoins now account for over 1.09% of the U.S. M2 money supply

Stablecoin supply

2️⃣ Adoption Continues to Surge

Stablecoin transfer volumes remained relatively steady, growing slightly in recent weeks alongside a steady increase in new wallets holding stablecoins.

  • $3 trillion in stablecoin transaction volume over past 30 days, via 626.4 million transactions

  • $498.9 billion in weekly transfer volume across major stablecoin projects

  • 156.6 million wallets hold stablecoins, (up 2.8% from 30 days ago)

  • 95.2 million wallets holding Tether's stablecoin, making it the clear leader

Stablecoin transfer volume

3️⃣ Stablecoin Liquidity by Chain

The top 10 blockchains by stablecoin liquidity all increased their stablecoin supply over the past two weeks, with Tron seeing the most significant surge, irrespective of its centralized nature. 

  • 57.21% of all USD stablecoin liquidity is on Ethereum, followed by TRON at 29%

  • Tron increased its stablecoin supply by roughly $1.3 billion over the past 2 weeks

Stablecoin supply by chain

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 Solana. For fully verified data sets, refer to the figures provided throughout this newsletter.

Plasma: Where Money Moves Next

From the corridors of Congress to Japan’s megabanks, global stablecoin adoption is accelerating. We are approaching a new era of global trade, powered by programmable money. And while regulation is catching up with innovation, the networks most stablecoins run on are not designed for the scale or speed the world demands.

That’s why we’re building Plasma. As stablecoins transition from crypto-native assets to a global money standard, they need faster, cheaper, 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.