Financial giants are rushing to launch stablecoins, potentially reshaping the market landscape.

As traditional financial institutions rush into the stablecoin market, this sector, which is worth $238 billion, is facing a significant transformation in its competitive landscape. Fidelity Digital Assets has recently entered this arena, marking a substantial commitment from mainstream asset management firms to the stablecoin market. Below are the strategic directions and product developments of the main market participants currently.

Fidelity

According to internal sources, Fidelity Digital Assets, a division of Fidelity Investments managing assets worth up to $5 trillion, has begun research and development testing for stablecoins. This move coincides with the U.S. Senate reviewing a landmark regulatory bill, and a breakthrough in policy could further stimulate market potential.

PayPal

PayPal launched its own stablecoin PYUSD in 2023, becoming the first payment giant to integrate a stablecoin into its platform. Users can conveniently buy, transfer, or use PYUSD just like regular PayPal balance. Currently, the market cap of this stablecoin has reached $791 million.

Robinhood

Thanks to the rapid growth of cryptocurrency trading, Robinhood achieved profitability in the fourth quarter, with cryptocurrency sales increasing by 700%. In November 2024, Robinhood launched a stablecoin called USDG in collaboration with other industry players, which operates on the "global dollar network" and provides holders with yield returns. Its market capitalization quickly grew from $29 million at the beginning of the year to $166 million.

Ripple

Ripple launched its stablecoin RLUSD last December. The long-time user of XRP for cross-border payments, Ripple plans to use this new coin "to provide stability and liquidity to its ecosystem." Ripple CEO Brad Garlinghouse stated that with increasing clarity in U.S. regulations, stablecoins like RLUSD are expected to gain wider adoption. The market capitalization of this stablecoin has grown to $176 million, which is just a small fraction of XRP's market cap of $140 billion.

World Liberty Financial

The DeFi platform World Liberty Financial, owned by the Trump family, is also turning its attention to the stablecoin sector. On March 25, the platform released details about its stablecoin USD1. 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 several technology and telecommunications companies in Hong Kong to develop the stablecoin. This stablecoin has not yet been officially launched in the market.

Market Outlook

Market data shows that the trading volume of stablecoins in 2024 will reach $16 trillion, with a total market capitalization rising to $238 billion. Although the market is currently dominated by two major players who hold 85% of the share, analysts predict that the market size will double within the year. In addition, a special report from researchers points out that stablecoins 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. The entry of traditional financial giants not only brings new vitality to the market but also has the potential to disrupt the existing market structure, providing users with more diversified options.