Stablecoin Market Cap Crosses $200B as U.S. Touts Digital Dollar Strategy
The stablecoin market has reached a historic milestone, surpassing $200 billion in total market capitalization as U.S. policymakers signal their intent to leverage digital assets to reinforce the dollar’s global dominance.
New data from Glassnode reveals that the combined market cap of the top five stablecoins climbed to $205 billion, driven by a surge in investor demand amid heightened macroeconomic uncertainty. This growth follows President Donald Trump’s election victory, which has coincided with a $40 billion expansion in the stablecoin sector.
Leading the charge is Tether’s USDT, maintaining a dominant market cap of around $140 billion, while Circle’s USDC has soared to nearly $60 billion—gaining $25 billion in just a few months. The rapid rise underscores the increasing reliance on stablecoins as a safe-haven asset amid volatile crypto and stock markets.
During the Digital Asset Summit on Friday, Treasury Secretary Scott Bessent highlighted the strategic importance of stablecoins in maintaining the dollar’s supremacy. “Stablecoins will be instrumental in keeping the U.S. dollar at the center of the global financial system,” Bessent stated.
The administration’s endorsement of stablecoins comes as foreign demand for U.S. Treasuries weakens, with key holders like Japan and China trimming their positions over the past year. Since stablecoins are backed by reserves that often include U.S. government debt, their growing market cap could provide an alternative means of supporting Treasury demand while expanding the dollar’s influence in global markets.
Tether, for example, is now one of the largest holders of short-term U.S. Treasuries, demonstrating how stablecoin issuers are becoming intertwined with traditional financial infrastructure. As regulators and policymakers look to formalize stablecoins within the U.S. financial system, their role in shaping global liquidity and monetary policy is only expected to grow.
