Stablecoin News: Stablecoin Supply Eyes $4T Boom Amid Yield Battle

Key Insights

• Bitwise CIO Matt Hougan said stablecoin payout tests by major tech companies could help drive supply from $300 billion to $4 trillion by 2030.
• TD Cowen says it does not see a middle ground in the stablecoin yield fight between banks and crypto platforms. It warned the dispute could still delay the CLARITY Act.
• Stablecoin supply was breaking all-time highs across the broader on-chain ecosystem.

Stablecoin supply continued reaching record highs this week as major technology companies expanded testing around blockchain-based payments. Analysts now expect the sector to grow sharply over the next several years as institutions and fintech firms increase adoption.

At the same time, disagreements between banks and crypto firms over stablecoin yield products continued shaping negotiations around the CLARITY Act in Washington.

Bitwise CIO Sees Stablecoin Supply Reaching $4 Trillion

Bitwise Chief Investment Officer Matt Hougan said stablecoin supply could climb from roughly $302 billion today to $4 trillion by 2030.

The projection followed growing interest from technology companies exploring stablecoin-based payments, cross-border transfers, and creator payouts.

Meta has reportedly tested stablecoin payments for creators in regions such as Colombia and the Philippines through networks tied to Solana and Polygon.

Stripe also expanded its stablecoin push after acquiring Bridge, a blockchain payments infrastructure platform. DoorDash later partnered with Stripe to test stablecoin payouts across multiple countries.

Other firms exploring stablecoin integrations reportedly include Apple, Uber, Airbnb, Google, Klarna, Cloudflare, and SWIFT.

The broader stablecoin market has benefited from rising institutional demand tied to payments, settlement systems, and tokenized assets.

Stablecoin News: Yield Fight Intensifies, Delays CLARITY Act

While most stablecoin news from the crypto community was positive, it did not sit well with the banks. As per TD Cowen, the stablecoin yield battle between banks and crypto platforms like Coinbase could be a stalemate to the passing of the CLARITY Act.

Banks do not want crypto platforms to provide yield for stablecoins. This is because this move would lead to massive capital leaving the banks to crypto platforms.

At the U.S. Senate, the battle to pass the CLARITY Act is nearing its end. Senators like Tim Scott, Thom Tillis, and Angela Alsobrooks were eyeing clearing the way for the bill to pass into law. Scott believed that President Trump might sign the bill by this summer.

However, the senators’ optimism did not mean a breakthrough. Still, there was a floor vote to be conducted in around June or July.

Stablecoin News: Total Cap Breaks ATH But Lags on Ethereum Network

The market cap of stablecoins reached a new all-time high of $302 billion. More than half was on the Ethereum (ETH) network, both on Layer 1 and its Layer 2 (L2) solutions, totaling $196 billion. The L2 solutions accounted for only about 9.4% of the ETH network.

However, the stablecoin supply on ETH was consolidating while the broader cap was making a new high. This contrast indicated a clear divergence, which may be a precursor before a breakout.

Altogether, the stablecoin supply was growing rapidly, backed by big tech companies. However, banks were blocking passage of the CLARITY Act, which would further streamline stablecoin operations.

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