The Year in Stablecoins 2025: Record Growth as GENIUS Act Opens the Floodgates
In 2025, stablecoins experienced record growth, with total market capitalization rising by 49% to $306 billion by November. This surge was driven by regulatory clarity in the U.S. with the GENIUS Act, further rules in Europe (MiCA), and widespread institutional adoption. Stablecoins, which maintain a 1:1 peg to fiat currencies like the U.S. dollar or euro, became further integrated into mainstream finance as companies such as Stripe and PayPal expanded support. Circle launched a notable IPO, attracting significant investor interest. Major issuers, including Circle, Ripple, Paxos, and BitGo, received provisional federal banking charters from U.S. regulators, signaling growing legitimacy. However, not all developments were positive; S&P Global downgraded Tether’s USDT stability due to concerns over its reserves holding Bitcoin, making it more vulnerable to market swings. U.S. regulators, including the FDIC, began working on new standards and application frameworks to implement the GENIUS Act, aiming to solidify and regulate the role of stablecoins in the broader financial system.
