Where Money Moves - Edition #9

Stablecoin growth hit new highs 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

Last week was big for Plasma. 

The XPL public sale began on Thursday, July 17, with over $50 million already committed. As the native asset of the Plasma blockchain, XPL facilitates transactions, secures the network through validator rewards, and aligns long-term incentives across the ecosystem. The sale remains open to depositors, whose allocations are guaranteed until Monday, July 28, at 9:00 AM ET.

The Plasma testnet also went live last week. Built from the ground up for global stablecoin payments, it includes our core components: the PlasmaBFT consensus and our Reth execution layer designed for throughput, speed, and scale. Developers can continue to build on testnet now. More details are available here. 

To mark this next stage of Plasma’s development, we are also proud to announce our rebrand. The new brand reflects our vision for a new financial system, not just for crypto participants, but for everyone. 

What’s New with Stablecoins

1️⃣ US House of Representatives passes GENIUS Act  

The US House of Representatives has passed the GENIUS Act, which seeks to create a regulatory framework for stablecoins. The bill is a pivotal moment for the digital asset industry, which has sought a proper regulatory framework for years. Crypto stocks rallied on the day after the news: Coinbase (COIN), Circle (CRCL) and Robinhood (HOOD) all traded between 7-9% higher, with COIN reaching its all time high of $433 per share, representing a market cap of nearly $110 billion.

2️⃣ Circle applies for US banking license with a view to custody its own reserves

Circle has applied to create a national trust bank in the US, which would allow the fintech to custody its own reserves and hold crypto assets for institutional clients. The license however would not permit Circle to take cash deposits or make loans like a traditional bank. Circle would only be the second digital asset company to receive a national trust bank charter, after Anchorage Digital. 

In Other News

• Bank of America confirms it is working to launch a stablecoin

• The Bank of New York Mellon was named by Ripple as the primary custodian of reserve assets backing its stablecoin, RLUSD

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: $256.4 billion (+4.00% from 30 days ago)

• USD₮ remains dominant: 64.1% market share ($160.2 billion)

• Stablecoins now account for over 1.17% 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.

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

• 172.83 million wallets hold stablecoins (up 2.71% from 30 days ago)

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

3️⃣ Stablecoin Liquidity by Chain

Over the past two weeks, with the increase in the price of ETH, the stablecoin supply on the network has grown rapidly. 

• Ethereum grew stablecoin supply over this period by $3.5 billion, remaining dominant in terms of market share for supply at 51.6%. Tron follows with 31.8% of market share.

• Another notable change is Solana’s continued loss of stablecoin liquidity. Over the last month, Solana has lost $0.9 billion in stablecoin supply, representing a decline of 0.35% in market share.

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

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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