The stablecoin market has witnessed remarkable growth, reaching a total valuation of $240 billion. This surge highlights the increasing influence of digital assets in global finance.
The Rise of Stablecoins and the USD’s Strength
Stablecoins, which maintain a steady value by being tied to assets like the US dollar, have become an essential link between cryptocurrency and traditional financial systems.
Recent data from CoinGecko reveals that the stablecoin market expanded from $133 billion in 2024 to $240 billion by early 2025. This sharp increase reflects their growing role in crypto trading, cross-border transactions, and decentralized finance (DeFi).
USDT (Tether) and USDC (USD Coin) lead the market, jointly holding 83% of the total stablecoin share. Their rapid adoption has been partly fueled by political support, including endorsements from former US President Donald Trump. He has called on Congress to introduce clear regulations for stablecoins to solidify the dollar’s dominance.
“I have urged Congress to establish straightforward, practical rules for stablecoins and market structure. With the right legal framework, businesses of all sizes can invest, innovate, and participate in one of the most transformative technological advancements of our time,” Trump stated.
China’s Concerns Over USD-Pegged Stablecoins
The widespread use of stablecoins tied to the US dollar has raised economic and geopolitical concerns. Chinese economist Zhang Ming argues that these digital assets reinforce US financial influence in the digital economy.
“If USD-backed stablecoins strengthen the dollar’s global reach in the virtual economy, they could significantly cement its dominance,” Zhang noted.
China has been actively working to reduce its reliance on the US dollar, particularly through its Cross-Border Interbank Payment System (CIPS), an alternative to the SWIFT network. However, if USD-backed stablecoins continue to dominate international transactions, these efforts could face serious setbacks.
European Union officials have also expressed apprehension, warning that the increasing prevalence of USD stablecoins may pose risks to the stability of the Euro.
As stablecoins continue to reshape global finance, the tug-of-war between major economic powers over digital currency influence is expected to intensify.