USDT, USDC face pressure as stablecoins go multichain

The growth of stablecoins is undeniable, as their reported market cap expanded to new highs in ￰0￱ additional supply is tracking a multi-chain, multi-token trend, which is challenging the dominance of USDT and ￰1￱ profiles are shifting, challenging the dominance of USDT and USDC, while also expanding the reach of ￰2￱ multichain trend is driven by USDC, which is aggressively spreading to new L1 and L2 ￰3￱ the same time, USDT still relies mostly on Ethereum and TRON for the bulk of its ￰4￱ the past year, stablecoin activity became truly multichain, though mostly due to the efforts of ￰5￱ usage was "dualchain" for many years. Today, it's arguably "multichain".

Increasingly ￰6￱ — Token Terminal @ TOKEN2049 🇸🇬 (@tokenterminal) October 3, 2025 Additionally, there are over 75 smaller stablecoins, which are just starting out with ￰7￱ with specific purposes are trying to displace USDT and USDC in their niche, pointing users to a new type of ￰8￱ such example is the recently introduced USDH by Hyperliquid, which will not fully displace USDC, but will add new usages to the ecosystem. MetaMask’s mUSD is another attempt to add bonuses for the niche ￰9￱ also chose to launch a new stablecoin for USA-based holders, instead of trying to make USDT compliant, as Cryptopolitan reported ￰10￱ get boost from Genius Act rules The drive to create more diverse stablecoins comes from the Genius Act, which regulates the creation of stablecoins in the ￰11￱ main driver of growth is the ability to buy T-Bills as collateral, launching a liquid, fully regulated ￰12￱ issuer can also earn passive income, choosing to share the interest with the token users.

Essentially, stablecoins will become an engine for T-Bill tokenization, as the Genius Act requires that reserves be held in short-term US treasuries, with a duration under 90 ￰13￱ of the reasons for the rush to have multiple stablecoin issuers is precisely the ability to have reliable yield on ￰14￱ issuers also do not pass the yield to holders, though some offer yield through DeFi ￰15￱ stablecoins are also essentially selling US debt to the crypto ￰16￱ stablecoins boost the prices of crypto assets, the increased debt is also a factor contributing to crypto growth, serving as a way to offset ￰17￱ show different activity levels and use cases The multi-chain, multi-token world of stablecoins shows some chains have vastly different use cases and activity ￰18￱ was a record month for stablecoin transfers, with a shift in usage and inflows to more ￰19￱ transfers reached a new peak in September, though activity was different for all chains |