Institutional Demand Drives Stablecoins to Record $314B Market Cap, Says Canaccord

Stablecoins Hit $314B as Regulation and Institutional Adoption Drive Momentum

The stablecoin market has surged past $314 billion in total capitalization, fueled by growth in Tether’s USDT and Circle’s USDC, according to Canaccord Genuity.

Regulatory clarity under the GENIUS Act, which treats compliant stablecoins like USDC as cash equivalents in the U.S., is boosting both confidence and adoption, analysts led by Joseph Vafi said. This framework, they argue, strengthens the case for stablecoins to become the “money layer” of the internet.

Stablecoins—cryptocurrencies pegged to assets like the U.S. dollar or gold—play a key role in the crypto ecosystem, providing payment infrastructure and enabling cross-border transfers. Despite their growth, the market remains underpenetrated relative to the U.S. M2 money supply, leaving significant room for expansion through 2026 as new entrants and applications emerge beyond traditional crypto trading.

Competition Intensifies Among Institutional Players

The sector is becoming increasingly competitive as major financial institutions outline stablecoin strategies. Tether, the market leader with nearly 70% market share, plans to launch a U.S.-regulated dollar stablecoin, USAT, by the end of 2025 and aims to raise $15–20 billion to support its growth.

Other financial heavyweights are entering the fray. Citigroup is reportedly exploring its own stablecoin initiative, while Visa has announced plans for a stablecoin pilot in April 2026. Meanwhile, USDC circulation is growing faster than anticipated, signaling intensifying competition in the sector.

Stablecoins as a Catalyst for Broader Crypto Adoption

Although stablecoins are not directly linked to bitcoin (BTC $106,718.30), their adoption is expected to accelerate growth across the broader crypto economy. By embedding themselves into global payments and settlement systems, stablecoins can drive investment in digital wallets, custody solutions, and next-generation DeFi applications.

Canaccord notes that this creates a reinforcing loop: as stablecoins become more integrated into the financial system, they strengthen the infrastructure supporting the wider cryptocurrency ecosystem, highlighting their critical role in the development of digital finance.

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