As ‘new currency-backed stablecoins’ gain interest, EURC, CNY, JPY take the spotlight

The stablecoin total market cap has reached $320.85 billion, as per DeFiLlama data. This marks a massive growth, as the stablecoin market went from $5 billion to $300 billion in just five years, as reported by the World Economic Forum.

In this growth, Tether’s USDT and Circle’s USDC played a major role, contributing 99.93% of the stablecoin market, according to Messari. 

However, with the rise of various other stablecoins, the dominance that the U.S. was witnessing seems to be fading away. As Mesari noted, 

In short, besides USDT and USDC, multiple stablecoins are becoming the new favorites. 

European, Chinese stablecoins steal the spotlight

In Europe, the EURC, despite a small market share of 0.07%, is gaining traction.

EURC has become the largest stablecoin, with a $430 million market cap, thanks to the EU’s MiCA (Markets in Crypto Assets) framework. If the growth momentum continues, EURC is likely to reach €1.1T by 2030.

The second one is a CNY-backed stablecoin in China. Though no CNY stablecoin is live yet, the test mode in Hong Kong is already enough to grab users attention.

The latter aims to boost Renminbi [RMB] internationalization, reducing the dependence on U.S. dollars. Moreover, Circle’s CEO Jeremy Allaire also predicted a yuan-backed stablecoin to be live in the next 3-5 years.

Japan’s JPY is no exception

Lastly, there are Japan’s JPY stablecoins. This stablecoin plans to issue $66 billion and provide tough competition to the European digital assets once alive.

The idea of stablecoin in Japan is to provide Japan’s users with additional digital payment options besides Japan’s cash-dominated framework.

Amidst such a rise, the BIS’s General Manager, Pablo Hernández de Cos, recently called for “international cooperation” on multiple regulatory stablecoin frameworks across jurisdictions.  

Regulatory developments in the U.S. around stablecoins

This comes on the heels of the US seeing regulatory developments like the GENIUS Act passed in 2025. Additionally, there has been ongoing progress around the passage of the CLARITY Act. Senator Cynthia Lummis put it best when she said, 

All in all, these developments show that besides the U.S., other nations stablecoins are making room to dominate the stablecoin space.

Final Summary

• Besides U.S.-backed USDC and USDT, multiple other stablecoins are destined to see massive growth.
• Tether and Circle stablecoins contribute 99.93% of the $320.858 billion stablecoin market cap.