From skepticism to adoption: Banks collectively embrace stablecoins, with a market capitalization exceeding $310 billion, reaching a historic high

The stablecoin market is undergoing a profound transformation: its total market capitalization has surged from approximately $200 billion in 18 months to a historic milestone of over $310 billion, with active user growth exceeding 50% annually. Even more significant signals come from the traditional financial heart—nine European banks plan to jointly issue stablecoins, JPMorgan is expanding its JPM Coin, and Société Générale has launched EURCV. These intensive moves indicate that banks no longer see stablecoins as marginal speculative tools but are strategically positioning them as core components of the next-generation payment and settlement infrastructure.

Two main engines driving this shift are already clear: the implementation of global regulatory frameworks (such as the EU’s MiCA and the US GENIUS Act) provides a compliant pathway, while on-chain data shows that in 2025, small-value payments (transactions under $1,000) reach a volume of $1.56 trillion, proving that stablecoins have become truly “functional currencies.”

180-Degree Attitude Shift: From Bystanders to Builders in Strategic Leap

Over the past six months, the global financial sector has witnessed a silent but profound attitude shift. The traditionally conservative banking system, long skeptical or even critical of cryptocurrencies, has begun to embrace stablecoins with unprecedented vigor. An alliance of nine European banks announced plans to launch a shared stablecoin in 2026; Wall Street giant JPMorgan is expanding its internal settlement currency JPM Coin to euro settlements; and Société Générale has introduced the euro stablecoin EURCV, backed by The Bank of New York Mellon. These are not exploratory proof-of-concepts but are production-level deployments equipped with capital commitments and comprehensive compliance frameworks.

Behind this collective strategic entry are two unavoidable realities recognized by the banking industry. First, the market size and user base of stablecoins have grown to an extent that cannot be ignored. With a market cap surpassing $310 billion, on-chain transaction volume exceeding $40 trillion, and over 200 million holders, these data depict a parallel financial system comparable in scale to a medium-sized economy. Second, banks realize that rather than passively defending or resisting, it’s better to actively participate and shape the emerging market’s rules and standards. By issuing or integrating compliant stablecoins, banks aim to regain dominance in the payment value chain and provide their clients with modern, cross-border digital asset services. This shift from “doubt and wait-and-see” to “participate and build” marks the formal elevation of stablecoins from experimental crypto-native tools to a key agenda in the evolution of global financial infrastructure.

Key Models and Data Comparison of Mainstream Stablecoins (as of end-2025)

• Total Market Size: Market cap $310 billion, up over 50% within the year.
• Leading Players: Tether’s market cap $187 billion, USD Coin’s $77 billion, dominating the space.
• Model 1: Fully Reserve-backed (e.g., USDC)
  • Reserves: Nearly 100% cash and short-term US Treasuries, held by regulated custodians.
  • Transparency: Monthly third-party audits.
  • Institutional Adoption: Preferred for bank and institutional settlements due to high compliance and transparency.
• Model 2: Hybrid Reserve (e.g., USDT)
  • Reserves: Include cash, government bonds, commercial paper, and even Bitcoin and gold.
  • Transparency: Quarterly reserve reports, but more complex structure.
  • Market Role: Leverages first-mover advantage to dominate liquidity and lead crypto trading pairs.
• Model 3: Crypto-collateralized Over-collateralized (e.g., DAI)
  • Mechanism: Created by locking excess crypto assets (like Ethereum) via smart contracts.
  • Advantages: Decentralized, not reliant on banks.
  • Risks: Dependent on underlying crypto asset prices and smart contract security.
• Model 4: Synthetic/Algorithmic (e.g., USDe)
  • Mechanism: Maintains peg through derivatives hedging (like futures), offering potential yields.
  • Features: High capital efficiency, but has experienced brief de-pegging during extreme market volatility.
  • Positioning: More viewed as yield-generating tools rather than payment infrastructure.

Dual Breakthroughs: How Regulatory Frameworks and Real Use Cases Open Doors for Banks

The dramatic attitude shift among banks is not accidental but results from two “high walls” being toppled in the short term. The first is regulatory uncertainty. For a long time, stablecoins operated in a gray area between payment tools, securities, and money market funds, deterring strictly regulated banks. However, the EU’s Markets in Crypto-Assets (MiCA) Regulation and the US GENIUS Act have fundamentally changed the game. These regulations set clear entry thresholds for stablecoin issuance: requiring 100% high-quality liquid assets (cash and government bonds), regular third-party audits, clear redemption rights, and strict AML controls. In short, regulation has shaped stablecoins into a financial product familiar and manageable for banks—similar to highly regulated money market funds. Once compliance pathways are clear, internal barriers within banks rapidly dissolve.

The second, even more disruptive driver is the fundamental shift in stablecoin use cases. For a long time, the market believed stablecoins’ primary role was as a trading medium and hedge within crypto exchanges. However, on-chain data reveals a very different story: in 2025 alone, small-value transactions under $1,000 processed via USDT totaled an astonishing $1.56 trillion. These are not large institutional transfers but retail payments, cross-border remittances, and P2P value transfers worldwide. Stablecoins are becoming “synthetic dollar accounts” for daily savings and payments in regions like Africa, Southeast Asia, and Latin America, playing a real monetary role where banking services are lacking or inefficient.

When banks see stablecoins no longer just as speculative chips moved around trading platforms but as real currencies used by ordinary people to pay tuition, send remittances, or conduct small business settlements, their strategic value is thoroughly reassessed. It signifies a massive, rapidly growing, and profitable digital payments market. Banks realize that if they do not participate in building this future payment infrastructure, they risk being excluded from the next-generation global financial network.

Beyond Trading: Stablecoins as an Infinite Scenario of Financial Infrastructure

With the entry of banks and traditional institutions, the role of stablecoins is rapidly expanding from a simple “trading medium” to a multi-dimensional infrastructure connecting traditional finance and crypto ecosystems, even reshaping the global payment network. The scope of their application far exceeds early expectations.

The most immediate transformation occurs in cross-border payments and remittances. Under the traditional correspondent banking model, a worker remitting money from the Gulf to Asia might pay 4% to 7% in high fees and wait 3 to 5 business days. Using USDT or USDC, the same transaction costs can drop below 1%, with funds arriving within minutes. This efficiency is forcing traditional remittance companies to rethink their business models. In countries with high inflation or capital controls, holding stablecoins has become an effective way for residents to preserve assets and conduct international transactions. Many emerging markets’ crypto trading volumes are now dominated by stablecoins.

At the institutional level, stablecoins are used more complexly and deeply. They serve as collateral in derivatives markets due to their stable prices and ease of transfer and verification on-chain. They are also used as efficient settlement assets across different trading venues, solving the long-standing issues of slow and costly cross-border fiat settlements. Moreover, combining stablecoins with yield assets like government bonds creates “interest-bearing stablecoins,” attracting corporate treasury departments seeking cash management solutions. Stablecoins thus stand at the intersection of payment systems, commercial banking, and capital markets, enabling seamless, global value flows in ways no traditional financial product can replicate.

Exchange Responsibilities and Industry’s Future: Toward Transparency and Maturity

Faced with the aggressive entry of banks and the fundamental evolution of stablecoin roles, cryptocurrency exchanges—key hubs connecting users and assets—must assume unprecedented responsibility and strategic positioning. The decision of which stablecoin models to list directly influences which can survive and thrive. History has repeatedly shown this: when Standard & Poor’s downgraded USDT’s rating due to reserve risks, exchanges reassessed their risk exposure; when TUSD de-pegged in 2024 over reserve issues, many exchanges swiftly delisted it. Exchanges’ risk management capabilities are directly shaping market health and evolution.

However, fulfilling this responsibility is no easy task. The early “all-in-one” listing strategy—listing all stablecoins for user choice—has become outdated and risky. Most ordinary users lack the expertise to independently review reserve reports or assess smart contract risks. Therefore, exchanges must take on a “gatekeeper” and “educator” role. This entails establishing strict internal review frameworks, prioritizing support for stablecoins that meet institutional standards in reserve transparency, asset quality, and regulatory compliance. They must also clearly explain to users the mechanisms, risks, and suitable use cases of different models like USDC, USDT, DAI, and USDe, helping them make informed decisions.

Looking ahead, the stablecoin industry stands at a critical crossroads. One path continues current reliance on short-term liquidity and market share, tolerating opacity and risks. The other embraces the high standards, transparency, and institutionalization brought by banks and regulators, building stablecoins as serious financial infrastructure. The choice made by banks has already pointed the way. For exchanges and the entire crypto industry, adopting the latter path—though more challenging—is essential for gaining long-term trust and achieving large-scale mainstream adoption. The industry’s maturity will no longer depend solely on technological breakthroughs or market cap growth but on whether participants approach this innovative tool—redefining global capital flows—with equal rigor and responsibility.