In the rapidly evolving world of cryptocurrency, stablecoins are not just holding their ground—they’re paving new paths. As of May 2025, five major stablecoin projects are poised to significantly boost crypto adoption, thanks to increasing institutional interest and emerging regulatory frameworks. The European Union’s Markets in Crypto-Assets (MiCA) regulatory package and the United States’ pending STABLE and GENIUS Acts are setting the stage for stablecoin expansion. Meanwhile, payment giants like Mastercard and Visa are ramping up their support for this burgeoning sector.
Tether Eyes a U.S. Comeback
Tether, the titan of stablecoins, is plotting a strategic relaunch in the U.S. market with a dollar-based stablecoin. Known globally for its USDt (USDT) token, Tether has faced scrutiny over its reserve proofs and transparency. In an interview with CNBC on April 30, Tether CEO Paolo Ardoino announced plans for a domestic stablecoin, distinct from its international counterpart. “A domestic stablecoin would be different from the international stablecoin,” Ardoino remarked, hinting at the company’s tactical maneuver to tap into U.S. financial markets as the nation’s crypto climate under President Donald Trump’s administration becomes more favorable. For more details on Tether’s U.S. plans, see Tether’s U.S.-Focused Stablecoin Could Launch Later This Year, CEO Paolo Ardoino Says.
Trump-Linked USD1 Enters the Arena
In a surprising twist, World Liberty Financial, associated with the Trump family, launched its own stablecoin, USD1, on the BNB Chain and Ethereum back in March. This dollar-backed stablecoin already boasts a market capitalization exceeding $2 billion, according to CoinMarketCap. The coin follows in the footsteps of previous Trump-branded crypto ventures, raising eyebrows and prompting a group of U.S. senators to question potential conflicts of interest. Their concerns are centered around Trump’s influence on stablecoin policy, which they argue could be problematic.
Institutional Players Join the Fray
Banks are also getting in on the action. Custodia Bank and Vantage Bank have teamed up to release what they claim is the first bank-issued stablecoin in the U.S., UK, and Europe. Named Avit, this ERC-20 token represents tokenized U.S. dollar demand deposits on the Ethereum blockchain. Custodia’s CEO, Caitlin Long, describes Avit as a “real dollar,” offering customers the ability to withdraw funds on demand, akin to traditional checking accounts.
Meanwhile, global payments platform Stripe is not sitting idle. CEO Patrick Collison revealed on April 28 that the company is working on a U.S. dollar-based stablecoin product for international use. This follows Stripe’s acquisition of Bridge, a stablecoin payments network, for $1 billion. Stripe’s renewed interest in crypto, especially after its 2014 Bitcoin endeavor, marks a significant shift as it expands its digital currency toolkit.
UAE Banks Pioneer Dirham-Backed Stablecoin
In the Middle East, the largest bank in the UAE, First Abu Dhabi Bank (FAB), is leading a coalition to introduce a dirham-backed stablecoin. This initiative, announced on April 28, awaits the nod from the central bank. The stablecoin, to be issued on the ADI network—a project backed by a $243 billion local holding firm—is expected to revolutionize finance, commerce, and trade in the region.
Payments Giants Embrace Stablecoins
The growing acceptance of stablecoins is evident as industry giants Mastercard and Visa intensify their involvement. Mastercard has teamed up with OKX to broaden its stablecoin card offerings, while Visa has aligned with Stripe and Bridge to introduce stablecoin payments across Latin America. Countries like Argentina, Colombia, and Mexico are set to benefit first from this expanded service. For further insights into Visa’s initiatives, see Visa and Baanx Launch USDC Stablecoin Payment Cards.
Japan is also warming up to stablecoins, with SBI VC Trade preparing to add USDC support following a regulatory shift. The company’s CEO, Tomohiko Kondo, confirmed that they are awaiting final approval to offer USDC trading, which would make them among the pioneers in Japan’s stablecoin market.
While the U.S. awaits congressional votes on the new crypto bills, the global landscape for stablecoins is increasingly positive. Should these regulatory frameworks pass, the potential for widespread adoption is immense, granting firms access to vast financial markets under clear guidelines. As stablecoins continue their ascent, questions linger about the long-term impacts on traditional banking systems and the broader financial ecosystem. Stay tuned—this is just the beginning.
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This article is based on: Stablecoin fever: 5 major stablecoins are growing crypto adoption
Further Reading
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- World Liberty’s Stablecoin Will Be Used to Close MGX’s $2B Binance Investment: Eric Trump
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
