Stablecoin Giants Are Evolving, Here’s How It Impacts You
April 04, 2025
Stablecoins are transforming — fast. Once passive yield vehicles parked in Treasuries, today’s biggest issuers are racing to reinvent their business models. The entrance of traditional finance giants, the rise of on-chain interest, and user demand for yield are shaking the very foundations of the stablecoin economy.
Let’s dive into what’s shifting — and what it means for exchanges, asset managers, and payment providers building in this space.
The big players are scrambling to figure out what's next:
Beyond Passive Income? Stablecoin Leaders Diversify Revenue Streams Beyond Treasuries
Tether is going full-on aggressive mode — morphing into an investment holding company with moves into farming (Adecoagro), media (Be Water), sports (Juventus FC), and even more Bitcoin.
Circle is doubling down on core tech, launching USDCKit SDK, prepping for an IPO and hoping regulators approve "on-chain interest."
Coinbase’s Brian Armstrong is pushing for new laws that let stablecoin holders earn interest directly from reserves.
And then there’s the rise of yield-bearing stablecoins, stealing the spotlight with real returns. Even TradFi giants like Northern Trust, ICE, and Mastercard are jumping in.
As Shawn from Artichoke Capital put it: stablecoins are just spicy money market funds. Their actual value comes from real-world use — cross-border payments, DeFi rails, and permissionless access to dollars.
We’re at a wild inflection point. The winners? Those who get diversification, tech, and use case right.
Week’s Highlight
Stablecoins: The Digital Era’s Money Market Funds
Shawn from Artichoke Capital draws a clear parallel between stablecoins and the rise of money market funds in the 1970s — both innovations solving for limited access to interest-bearing cash options and paving the way for financial system upgrades.
“Students of financial history will see the parallels with the invention and growth of money market funds about a half century ago.” — Shawn from Artichoke Capital
Tether’s Bold Pivot Beyond Treasury Bonds
Tether is evolving from a simple issuer into a diversified powerhouse. With $13B in 2024 profits, they’re spreading bets across sectors:
70% stake in Adecoagro
Be Water Media
Juventus FC (minority stake)
Rumble and Blackrock Neurotech
92,647 BTC now held as reserves
They’re not just backing USDT anymore — they’re building a sovereign-style portfolio.
Stablecoin Interest: The Regulatory Hurdle Holding Back Innovation
Coinbase CEO Brian Armstrong has a simple ask: if banks pay interest, why can’t stablecoins?
The case for "on-chain interest":
Users could earn market yields (~4.75%)
Mobile-first financial inclusion expands
The USD grows more dominant
The roadblock? Outdated U.S. securities laws that classify yield-bearing stablecoins as investment contracts.
Regulation & Compliance
UK's FCA is shifting from temporary registration to a full crypto licensing regime by 2026. Stablecoin issuers should prepare for higher regulatory scrutiny — but also more clarity.
New Launches
USDCKit SDK → Circle simplifies USDC payment integrations for businesses.
USD₮0 goes live on Unichain, promising cheaper, faster DeFi on ERC-7802.
Northern Trust x Haycen → TradFi + stablecoin custody collaboration.
ICE (NYSE parent) explores tokenized money markets via Circle’s USDC and USYC.
Mastercard wants to build the Visa of crypto — and it’s bringing the banks along.
Market Adoption
Ethereum stablecoin supply breaks all-time high at $132.4B. USDT = $142B. USDC = $49B. Ethereum = 58% of global share.
Tokenized Treasuries surge to over $5.2B, up from $800M last year.
Ripple x Chipper Cash → XRP now powers African cross-border payments.
Tokenized gold hits $1.4B. Tether’s XAUT and Paxos PAXG dominate. Rising gold prices + demand for digital assets = growth.
Ethena’s USD₮b becomes a top 10 stablecoin — and MiCA is boosting euro-backed stablecoins.
Capital Moves
Tether boosts stake in Adecoagro, expands into media.
Circle hires banks for IPO filing, expected April.
Tether adds 8,888 BTC, bringing total holdings to 92,647 BTC.
Final Word from Cobo
Global payments are being rewritten — and stablecoins are leading the charge.
Cobo builds the secure, scalable infrastructure behind the next generation of stablecoin-powered products: from multi-chain wallets and regulatory controls to secure treasury operations and on-chain yield.
If you're a digital asset exchange, payment provider, or fintech building in this space, you don’t have to do it alone.
