Crypto
Stablecoin Market News: Shifting Focus From Bitcoin to Stablecoin Sector
Stablecoins are no longer just a niche corner of the crypto market. With a combined market cap exceeding $322 billion.
28d ago 4,280
BLOCKINSIDERLoadingStablecoins are no longer just a niche corner of the crypto market. With a combined market cap exceeding $322 billion.
Quick Take:
Stablecoins are no longer just a niche corner of the crypto market. With a combined market cap exceeding $322 billion, the sector is now so large that it handles trillions of dollars in annual transaction volume.
Meanwhile, Bitwise CIO Matt Hougan says that stablecoins have become one of the biggest discussion points among professional investors.
This growth did not happen overnight. Over the past few months, stablecoins have moved from being a niche crypto product to a major part of financial discussions.
The GENIUS Act helped accelerate that shift by creating a regulated framework for payment stablecoins in the United States. The legislation established a new category of licensed stablecoin issuers and requires companies to build compliance, treasury, technology, and operational teams to support their products.
As regulation improves, more traditional financial institutions are becoming comfortable entering the sector.
Well, the market stood at $308.55 billion in January 2026, meaning it has added over $13 billion in just four months.
In a recent blog post, Matt Hougan said that he recently spoke with more than 40 financial advisors in a single day. And I learned two very important things.
First, that advisors remain interested in crypto. And secondly, that they are focused on stablecoins and tokenization more than they are on bitcoin
Hougan further added that industry leaders, including SEC Chair Paul Atkins, Goldman Sachs CEO David Solomon, and BlackRock CEO Larry Fink, have all recently discussed stablecoins and tokenization as important parts of the future financial system.
Despite stablecoin growing demand, Hougan says that he still considers Bitcoin trading above $60,000 to be attractive for long-term investors.
One of the biggest recent developments came from Ripple. The blockchain payments company expanded its partnership with Bitso to bring MXNB, Bitso's Mexican peso-backed stablecoin, onto the XRP Ledger.
The new integration allows MXNB to operate alongside Ripple USD (RLUSD), Ripple's U.S. dollar-backed stablecoin.
Traditional finance companies are also moving aggressively into the sector. This week, Mastercard launched Agent Pay for Machines, a new platform designed to allow AI agents to transact using cards, bank accounts, and stablecoins. The initiative launched with more than 30 partners, including Ripple, Coinbase, Solana, Stripe, and OKX.
Meanwhile, Japan's three largest banks, Mitsubishi UFJ, SMBC, and Mizuho, are working on a joint stablecoin project expected to launch by 2027. The banks aim to use blockchain-based stablecoins to improve cross-border payments and reduce settlement costs for businesses.
These developments show that major financial institutions are no longer watching stablecoins from the sidelines. They are actively building products around them.
Stablecoins are no longer just used for crypto trading. They are increasingly becoming part of global finance and even international policy.
In April, Tether froze $344 million linked to wallets associated with Iran's Central Bank, showing that stablecoins can be used to enforce sanctions and comply with regulatory requirements.
However, regulators warn that in some countries, people moving money into stablecoins could weaken local currencies and increase pressure on domestic financial systems.
Alongside stablecoins, tokenization is gaining momentum. Many industry leaders believe this could dramatically improve efficiency, reduce settlement times, and create new investment opportunities.
According to Hougan, this growing interest is one reason advisors are paying closer attention to the broader blockchain industry.
As adoption accelerates, the stablecoin market alone is expected to surpass $500 billion by 2028, a target that once seemed ambitious but now appears increasingly achievable.
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