The stablecoin market has now exceeded $300 billion, according to a Moody’s report. As regulatory clarity has emerged, more traditional financial services and Fintechs are entering the digital dollar game.
At the end of 2025, the report states that settlement volumes had increased by 87% to $9 trillion.
At least 19 new stablecoins have been launched in the past year as institutions increasingly use them for instant payments, collateral transfers, and cross-border transactions.
And it is not only the GENIUS Act in the US, but it is also MiCA or Markets in Crypto Assets rules in Europe that have boosted stablecoin issuance and usage.
While most of the attention has been on payment stablecoins and fiat-backed digital currencies, the report also mentions algo-based stablecoins and crypto-backed digital assets.
Algorithmic stablecoins rely on supply adjustments executed through smart contracts to stabilize value through market-driven supply and demand dynamics.
Crypto-backed stablecoins are collateralized with other cryptocurrencies and similarly use automated processes to maintain value.
Commodity-backed stablecoins are gaining traction. These are backed by assets such as gold or other commodities.
Moody’s states that even with established regulatory controls, governance risks remain higher for non-bank stablecoin issuers than for traditional banks.