Financial giants are increasingly entering the stablecoin market, and the industry landscape may be reshaped.

The stablecoin market has reached a scale of $238 billion, and traditional financial institutions are continuously entering this field, accelerating the restructuring of the industry competition pattern. Recently, Fidelity Digital Assets has entered the stablecoin sector, marking a substantive layout of mainstream asset management institutions in this area. Currently, the strategic dynamics and product developments of the main market participants are as follows:

Fidelity

According to sources, the cryptocurrency division of Fidelity Investments, which manages assets totaling $5 trillion, has begun testing the development of a stablecoin. This move coincides with the U.S. Senate's consideration of a landmark regulatory bill, and a policy breakthrough could further activate market potential.

PayPal

PayPal launched the stablecoin PYUSD in 2023 and integrated it into its platform. Users can buy, transfer, or use PYUSD through the company's app or website, functioning the same way as a regular PayPal balance. The current market value of this stablecoin is 791 million dollars.

Robinhood

In November 2024, Robinhood partnered with a cryptocurrency exchange and research company to launch a stablecoin called USDG. This product operates on the "Global Dollar Network" and provides holders with yield returns. Its market capitalization rapidly grew from $29 million at the beginning of the year to $166 million.

Ripple

Ripple launched the stablecoin RLUSD last December. The company, which has long used XRP for cross-border payments, plans to leverage this new coin to "provide stability and liquidity to its ecosystem." The CEO of Ripple stated at the launch of RLUSD that, as U.S. regulations become clearer, stablecoins like RLUSD are expected to see broader adoption. The market capitalization of this stablecoin has grown to $176 million.

World Liberty Financial

The DeFi platform World Liberty Financial, owned by the Trump family, released details of its stablecoin USD1 on March 25. This stablecoin will be backed by short-term U.S. Treasury bonds, dollar deposits, and other cash equivalents, and will initially be issued on the Ethereum and BNB chains.

Standard Chartered Bank

Standard Chartered Bank, which has a strong influence in Asia, is developing a stablecoin pegged to the Hong Kong dollar. In February of this year, the bank announced that it is collaborating with a Web3 company and a telecommunications provider in Hong Kong to develop the stablecoin. The product has not yet been officially launched in the market.

Industry Outlook

Market data shows that the trading volume of stablecoins will reach $16 trillion in 2024, with a total market capitalization rising to $238 billion. Although the two major mainstream stablecoins still account for 85% of the market share, some analysis agencies predict that the market size will double within the year. In addition, a special report by researchers from the Atlanta Federal Reserve highlights that these digital tools are playing an increasingly important infrastructure role in the trillion-dollar payment system. With the improvement of regulatory frameworks and the establishment of technical standards, the stablecoin market may usher in a new round of explosive growth.