Canaccord: Stablecoins Soar to $314B as Institutional Adoption Accelerates

Stablecoins Hit $314B as Regulation and Institutional Interest Surge

The stablecoin market has reached a record $314 billion, led by Tether’s USDT and Circle’s USDC, according to Canaccord Genuity. Analysts attribute the growth to regulatory clarity under the GENIUS Act, which treats compliant stablecoins like USDC as cash equivalents in the U.S., boosting confidence and adoption.

Joseph Vafi and his team at Canaccord said this framework strengthens the case for stablecoins to serve as the “money layer” of the internet. Stablecoins—cryptocurrencies pegged to assets like the U.S. dollar or gold—play a crucial role in the crypto ecosystem by providing payment infrastructure and enabling cross-border transfers. Despite rapid growth, the market remains underpenetrated relative to the U.S. M2 money supply, leaving substantial room for expansion through 2026.

Competition Among Institutions Intensifies

The market is becoming increasingly competitive. Tether, the largest player with roughly 70% market share, plans to launch a U.S.-regulated stablecoin, USAT, by the end of 2025 and seeks $15–20 billion to support its expansion.

Other major institutions are entering the fray. Citigroup is exploring its own stablecoin initiative, while Visa has announced a stablecoin pilot for April 2026. At the same time, USDC circulation is growing faster than expected, signaling intensifying competition among issuers.

Stablecoins as a Growth Engine for Crypto

Although stablecoins are not directly tied to bitcoin (BTC $106,718.30), Canaccord says their adoption is likely to catalyze broader crypto growth. By embedding themselves into global payment and settlement systems, stablecoins support investment in digital wallets, custody solutions, and next-generation DeFi applications.

This creates a reinforcing cycle: as stablecoins become more integrated into the financial system, they strengthen the infrastructure supporting the wider cryptocurrency ecosystem, solidifying their role as a foundational layer for digital finance.