The total capitalization of the stablecoin market has reached between $300 billion and $322 billion, more than doubling from the $124 billion recorded at the end of 2023. Tether's USDT currently accounts for approximately 60% of the market with a supply of $180-190 billion, while Circle's USDC holds a 24% share at $73-77 billion.
Combined, these two issuers control 83-85% of all stablecoins in circulation. Tokens pegged to currencies other than the US dollar represent less than 0.5% of the total market. In September 2026, USDC experienced inflows that added hundreds of millions in supply within a single week, helping the total market capitalization return to the $300 billion level.
The regulatory landscape changed in July 2025 with the enactment of the GENIUS Act, which established a federal framework for issuing stablecoins backed by dollar-denominated assets, primarily short-term Treasury bills. Issuers now hold significant portfolios of these government securities to support their tokens.
Projections suggest that demand for US government debt from stablecoin issuers could reach hundreds of billions or trillions of dollars by 2030. Treasury Secretary Scott Bessent noted that this creates a structural bid for American debt, potentially lowering yields and expanding the influence of the dollar globally.
Economists including Kenneth Rogoff have highlighted risks associated with concentrated reserves and potential bank-run scenarios. With two companies controlling 85% of the market, experts warn that a failure of either issuer could trigger a liquidation of Treasury holdings that would extend beyond the cryptocurrency sector.
