Stablecoin Sector Hits $200B Milestone Amid U.S. Push to Leverage Crypto for Dollar Supremacy

Stablecoin Market Cap Breaks $200B as U.S. Treasury Leverages Digital Assets to Bolster Dollar’s Global Status

The stablecoin sector has experienced unprecedented growth following the U.S. election, as shifting macroeconomic conditions and new government strategies reinforce their role in global finance.

For the first time, the combined market capitalization of the top five stablecoins has exceeded $200 billion, with Glassnode data showing a peak of $205 billion. This surge follows Treasury Secretary Scott Bessent’s recent pledge to incorporate stablecoins into the U.S. government’s broader plan to uphold the dollar’s position as the dominant reserve currency.

As traditional markets and major cryptocurrencies like bitcoin (BTC) and ether (ETH) struggle with volatility, investors have increasingly turned to stablecoins for security. Since President Donald Trump’s electoral victory, the stablecoin market has expanded by $40 billion, highlighting its resilience amid economic uncertainty.

Tether’s USDT remains the market leader, holding a steady market cap of approximately $140 billion, while Circle’s USDC has surged to nearly $60 billion—gaining an impressive $25 billion since the election.

At the Digital Asset Summit on Friday, Bessent underscored the strategic importance of stablecoins, stating, “The U.S. dollar must remain the world’s reserve currency, and stablecoins will help ensure that reality.”

The statement comes amid concerns over dwindling foreign demand for U.S. Treasuries, particularly from Japan and China, which have been offloading their holdings. Reduced demand for U.S. debt could lead to higher Treasury yields, making borrowing more expensive for the U.S. government.

Recognizing this, policymakers are now looking at stablecoins as a potential stabilizing force. Since these digital assets are largely backed by U.S. dollar reserves and Treasury securities, their widespread adoption could create consistent demand for U.S. debt, helping to control yields while reinforcing the dollar’s international dominance.

Tether, for instance, has already become one of the largest holders of short-term U.S. Treasuries, further illustrating how stablecoins are becoming an integral part of the global financial system.