Latest news with #stablecoin
Yahoo
an hour ago
- Business
- Yahoo
USDC by Circle Is the Second-Largest Stablecoin by Market Cap. Can It Ever Catch Up to Tether?
Key Points Tether, the top stablecoin in the world, has a market cap that is $100 billion larger than that of No. 2 USDC. For USDC to surpass Tether, it must strengthen its appeal to institutional investors, who already prize its transparency and regulatory compliance. USDC also needs to develop more consumer-facing use cases, such as online payments. 10 stocks we like better than USDC › Combined, Tether (CRYPTO: USDT) and USDC (CRYPTO: USDC) account for 90% of the total market cap of the stablecoin industry. According to the latest stablecoin research from The Motley Fool, Tether has a market cap of $158.9 billion, while USDC has a market cap of $62.6 billion. So can USDC ever close this $100 billion gap, or is Tether's first-mover advantage simply insurmountable? The answer might surprise you. There are three good reasons why USDC might soon surpass Tether as the most popular stablecoin in the world. 1. Global expansion Even though both Tether and USDC are pegged 1:1 to the dollar, there are several key differences. For example, Tether is domiciled in the Caribbean, while USDC is a U.S-based stablecoin. The issuer of the USDC stablecoin is New York-based Circle Internet Group (NYSE: CRCL), which became a publicly traded company on the New York Stock Exchange earlier this summer. This only enhances the perception that USDC is the stablecoin that America uses, while Tether is the stablecoin that the rest of the world uses. Tether currently towers over USDC in terms of market cap as it has 350 million users worldwide, and is very popular in emerging markets. For its part, Circle says that 70% of USDC usage is now coming from beyond U.S. borders. From my perspective, USDC still needs to expand its footprint internationally, and that means lining up foreign partners. In the U.S. market, USDC has already partnered with several financial institutions and fintech providers, including Coinbase Global (NASDAQ: COIN). Now, it needs to expand on those partnerships to grow its global footprint. 2. Growth with institutional investors USDC also has an opportunity to become the preferred stablecoin of large institutional investors. Interestingly, the passage of the Genius Act by Congress may have opened the door to that happening sooner than anyone expected. That's because the Genius Act is very clear about the backing of stablecoins by stablecoin issuers. At a minimum, a stablecoin must be backed 1:1 by cash and cash equivalents. The Genius Act expressly says that any other form of backing for stablecoins is unacceptable. And that's where things get interesting because Tether has been opaque in the past about the backing of its USDT stablecoin. In the past, for example, it has used cryptocurrency, gold, and even commercial paper as backing. According to the Genius Act, those are ineligible assets. Moreover, Tether has been much less forthcoming than Circle about showing proof of its reserves. Even before the passage of the Genius Act, there was concern that Tether might use its offshore location as a way to evade some of the more stringent reporting now required in the U.S. market. Even worse, there have allegedly been instances in the past when Tether apparently had "ghost reserves" that didn't actually exist. So here's my thinking: Big-time institutional investors in the U.S. that want to get involved with stablecoins are probably going to opt to use USDC, out of an abundance of caution. Historically, USDC has been considered more transparent and more compliant with U.S. regulatory frameworks than Tether. Granted, Tether is more liquid than USDC, and has less slippage on its dollar peg than USDC (which makes it very useful for high-frequency traders), but it also carries more regulatory risk. 3. New use cases for consumers and businesses Finally, USDC can steal a march on Tether by growing the number of possible use cases for consumers and consumer-facing businesses. For example, The Wall Street Journal recently reported that both Amazon (NASDAQ: AMZN) and Walmart (NYSE: WMT) are considering the launch of stablecoins as a payment option for consumers. If these consumers use stablecoins, Amazon and Walmart can cut down on their credit card processing fees, saving them money. So that seems like another way for Circle to grow faster than Tether: go all-in on stablecoins as an innovative new payment option, signing up as many partners as possible. In June, for example, Shopify (NASDAQ: SHOP) signed up as a USDC partner. Circle is also working with Coinbase to increase usage of USDC as a potential payment option at consumer-facing businesses. When will USDC pass Tether? A lot has to go right for USDC to pass Tether in terms of market cap. But, if all goes according to plan, this might actually happen soon if USDC doubles in size each year, while Tether continues to grow at a steady 10% rate. If this ultra-optimistic scenario plays out, then USDC might be able to narrow the $100 billion gap with Tether within the next 24 months. So, while there are a growing number of Circle naysayers out there, I'm not one of them. If you are looking to capture any potential upside from the rapid growth of the stablecoin market, you might think about adding some Circle to round off your portfolio. Should you buy stock in USDC right now? Before you buy stock in USDC, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and USDC wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Dominic Basulto has positions in Amazon, Circle Internet Group, and USDC. The Motley Fool has positions in and recommends Amazon, Shopify, and Walmart. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. USDC by Circle Is the Second-Largest Stablecoin by Market Cap. Can It Ever Catch Up to Tether? was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
4 hours ago
- Business
- Globe and Mail
Imagen Network Brings RLUSD Payments Into Decentralized Applications to Improve Creator Accessibility
RLUSD integration enhances utility, enabling frictionless engagement and monetization for Web3 creators. Singapore, Singapore--(Newsfile Corp. - July 31, 2025) - Imagen Network (IMAGE), the decentralized AI-powered social platform, now supports RLUSD, the upcoming stablecoin from Ripple Labs, as a native payment method across its growing application ecosystem. This integration is designed to improve access to monetization tools and streamline participation for creators and users alike. Enabling accessible Web3 creation with seamless stablecoin-powered tools. To view an enhanced version of this graphic, please visit: By leveraging RLUSD's stable and transparent architecture, Imagen offers creators an accessible and secure way to transact without worrying about volatility. Whether unlocking personalized feeds, activating AI tools, or purchasing token-gated content, users can now engage directly using RLUSD across connected wallets and supported platforms. The RLUSD addition also aligns with Imagen's broader strategy to simplify peer-to-peer engagement across multiple chains. It brings new possibilities for tipping systems, subscription models, and social rewards powered by scalable, real-world assets. Imagen's AI infrastructure adapts in real time to deliver personalized experiences funded by seamless, user-friendly transactions. As Imagen continues to scale its creator-first model, the RLUSD integration lays the groundwork for increased financial empowerment within the AI-powered decentralized web. About Imagen Network Imagen Network is a decentralized social platform that blends AI content generation with blockchain infrastructure to give users creative control and data ownership. Through tools like adaptive filters and tokenized engagement, Imagen fosters a new paradigm of secure, expressive, and community-driven networking. Social Media Twitter Instagram
Bloomberg
10 hours ago
- Business
- Bloomberg
Hong Kong's Stablecoin Regime to Begin After US Sets Pace
A new set of rules governing stablecoin issuers in Hong Kong takes effect on Friday as Asian authorities step up regulatory efforts in response to President Donald Trump's campaign to stoke the growth of tokens pegged to the US dollar. The bill will supervise the issuance of stablecoins designed to match the price of the Hong Kong dollar, as well as sales and marketing of such assets. Firms interested in applying early for a stablecoin license in the city should do so by Sept. 30, the Hong Kong Monetary Authority said in a recent statement. The de facto central bank expects to grant the first batch of approvals early next year.
Yahoo
10 hours ago
- Business
- Yahoo
Hong Kong Releases Guidance on Strict Rules for Stablecoin Issuers
The Hong Kong Monetary Authority (HKMA) released guidance on Tuesday for stablecoin licensing, outlining strict capital, reserve, governance and technology standards for issuers seeking to operate in the city's regulated digital asset market. The guidance also covered rules on money laundering and transitional measures for issuers of existing stablecoins. Stablecoins are digital assets that are pegged to other assets like fiat currency. HKMA's stablecoin regime is set to take effect on Friday and a bill on rules for the sector was passed in May. Already 40 firms are waiting to apply for a stablecoin license, though the regulator is reportedly expected to approve less than 10 applications initially. HKMA CEO Eddie Yue last week warned companies to not be overly excited about the coming regulatory regime, particularly if their business is not related to stablecoins. The regulator wants to take a cautious approach as outlined in its consultation conclusions on money laundering. Issuers are yet to prove that they can effectively mitigate against money laundering, HKMA said in its paper. Unless a stablecoin issuer that is licensed can prove that it can effectively mitigate money laundering risks, it will need to verify the identity of every stablecoin holder "even if the holder has no customer relationship with the licensee," the HKMA consultation response document said. The document also outlined that supervised virtual asset service providers or a reliable third party can also verify the identity of its stablecoin holders. Hong Kong also has a license regime for crypto companies and started awarding licenses last year. "The HKMA will continue to evaluate the effectiveness and appropriateness of such measures considering, among other things, the evolving regulatory landscape," the regulator said in its Tuesday consultation response. Stablecoin issuers which are fully prepared should apply by the end of September, the HKMA press release said. A realistic timeline to start awarding licenses is early next year, Darryl Chan Wai-man, deputy chief executive of HKMA, told South China Morning Post on Tuesday talking about the region's stablecoins regime. Parts of this article were generated with assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy. Update and Correction (July 29, 18:21 UTC): Adds details throughout from the guidelines and context from South China Morning Post at the bottom. Also corrects the story to say HKMA wants firms that are fully prepared to apply by the end of September, an earlier version said end of August.
Yahoo
14 hours ago
- Business
- Yahoo
BlackRock, Inc. (BLK): People Sent Me Emails Saying I Don't Know Anything, Says Jim Cramer
We recently published . BlackRock, Inc. (NYSE:BLK) is one of the stocks Jim Cramer recently discussed. BlackRock, Inc. (NYSE:BLK), the world's largest asset manager, has seen its shares gain 9.9% year-to-date. The firm has benefited from a growth in mergers and market activity after record-high interest rates eased. Cramer's previous remarks about BlackRock, Inc. (NYSE:BLK) have remarked that the firm's $12 trillion in assets under management can enable it to set up a sizable position for itself in the stablecoin market. This time, Cramer shared the responses he had received after speculating BlackRock, Inc. (NYSE:BLK)'s position in the stablecoin market: 'I mean I said that maybe there's a possibility that. .Blackrock could do a stablecoin. And you know you get the usual emails which is like you don't know what you're talking about, it's going to be much bigger.' Previously, Cramer discussed BlackRock, Inc. (NYSE:BLK) after its earnings: 'Oh, then BlackRock comes out. Now I've championed BlackRock since $600, but it's what have you done for me lately game. I hear it was at $1,111. I look at the headlines, and they seem solid, but there's a seemingly disappointing line about inflows… When I saw the stock up 20, I knew whoever was excited about how BlackRock beat the quarter was a dead man walking. Why? Well, because this is an inflow story, and those moronic quick draws would lose money, but I had no idea they'd lose almost 90 points. Source: PEXELS Now I'm quite confident that both stocks are going higher eventually, but now they have to shake out all the weak hands before that happens, and that takes time. You have to build a whole new shareholder base. The companies might help. They might come on and tell us where the sellers were wrong… But in earnings season, there's no such thing as do-overs. The fact is that if BlackRock or Wells Fargo had reported quarters that were in keeping with what was expected, they wouldn't necessarily be higher today, but they certainly wouldn't have ruined earnings season for me.' While we acknowledge the potential of BLK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
