This week in stablecoins: Ethena preps a $1.5B launch in the U.S., PayPal and Western Union gear up to compete, and global regulators brace for the next phase.
August 29, 2025
🌍 Stablecoin industry projected to grow rapidly
GENIUS Act fuels $75B stablecoin supply forecast
Bank of America analysts predict stablecoin supply could grow from $25B to $75B in the near term, driven primarily by the recently passed GENIUS Act.
Other growth drivers include a wave of new product rollouts, intensifying competition amongst issuers, and increasing blockchain-infrastructure investment.
Analysts expect more stablecoin consolidation over the next 2-3 years.
China speeds up stablecoin play amid U.S. pressure
Evan Auyang, President of Animoca Brands, suggests that China's accelerating interest in stablecoins is a direct response to the U.S.'s aggressive moves to open up digital asset markets.
This marks a sharp contrast with 2021, when the People's Bank of China published a white paper titled Progress of Research & Development of E-CNY in China that labeled stablecoins as "threats".
The result? A global acceleration in stablecoin adoption as geopolitical competition intensifies. Auyang predicts that "every country will have a regulated stablecoin at some point in time".
Hold your horses! HK warns that not everyone's getting a license
Hong Kong Monetary Authority (HKMA) CEO Eddie Yue urged stablecoin-issuing companies, especially those whose main businesses are unrelated to stablecoins, to temper their enthusiasm for entering the stablecoin space.
Although over 40 firms are set to apply for Hong Kong's upcoming stablecoin licensing regime, Yue noted that fewer than 10 may actually be approved.
Stablecoin holders outnumber Solana for the first time
Reown CEO Jess Houlgrave noted that stablecoins and crypto payments have "quietly become the real breakout use case". What this means is that more users are now engaging in stablecoin payments, shifting from speculation to real-world utility.
Houlgrave predicts that the next 100 million crypto users will come onboard via seamless and intuitive payment experiences that integrate directly into everyday life.
🔥 GENIUS Act attracts global "Big Names"
Paypal's new platform: Stablecoin's biggest upcoming rival?
U.S. payments company PayPal has announced a new payments platform launching this fall. It will connect U.S.-based digital wallets to its global user network, eliminating the need for new accounts or physical cards.
PayPal's key partners include China's Wechat Pay and Brazil's Mercado Pago, giving PayPal the ability to support in-store, online, and peer-to-peer transactions across a global network.
Its core features, such as fast settlement and real-time currency conversion, closely mirror the utility offered by stablecoins. PayPal has also confirmed plans to gradually integrate stablecoins directly into the ecosystem. This highlights a key risk for crypto-native builders: traditional firms may now replicate stablecoin functions without needing permissionless infrastructure.
However, Andrei Grachev, Managing Partner at Falcon Finance, argues the threat may be overstated. While the platform "raises the bar for fiat payments," he says, it lacks the same advantages stablecoins have in micro-payments, cross-chain exchanges, and underbanked regions.
Western Union enters the chat: the GENIUS Act being a game changer for remittances
Western Union CEO Devin McGranahan calls stablecoins "an opportunity, not as a threat." The firm has launched stablecoin settlement pilots in South America and Africa, partnering with FX infrastructure providers to improve speed and cost.
McGranahan highlights three key opportunities for the firm: faster cross-border transfers, improved fiat conversion options in underserved markets, and store-of-value product offerings for weak-currency economies. The company is also exploring partnerships for crypto on-/off-ramps and stablecoin wallet offerings.
OwlTing Group, a MoneyGram (Western Union competitor) partner, reports that stablecoins can cut global remittance fees well below the U.N.'s 3% target, down from the 6.6% average, by removing intermediaries and reducing FX markup. Moreover, these settlements are near-instant and operate 24/7.
OwlTing Group CEO Darren Wang notes growing traction among SMEs and migrant platforms, especially for payments into Africa where speed and transparency are critical.
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Nigeria planning to embrace stablecoin startups with softening regulations
The SEC has already onboard stablecoin firms into a regulatory sandbox, with Agama envisioning "a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam."
Analysts remain cautious. Ryan Yoon (Tiger Research) says Nigeria won't become a stablecoin hub overnight, though adoption "could aid currency management."
Hank Huang from Kronos Research echoes this sentiment, noting that "restoring deep liquidity will take time.”
💡Other Notable Power Plays of the Week
Ethena Labs is more than ready to debut its $1.45B USDtb stablecoin in the U.S.
Ethena Labs is entering the U.S. market through a partnership with Anchorage Digital, a federally regulated crypto bank, to launch its $1.45B USDtb stablecoin under the GENIUS Act.
Previously issued offshore, USDtb is backed by BlackRock/Securitize's tokenized money market fund (BUIDL).
"Chinese Ethereum" Conflux to launch offshore yuan stablecoin and Conflux 3.0 in August
Conflux Network, a Chinese Layer 1 blockchain often called the "Chinese Ethereum," announced that it has partnered with fintech firm AnchorX and East Compeace Technology to launch an offshore-yuan-pegged stablecoin.
This stablecoin would be for use in countries participating in the Belt and Road initiative (BRI), China’s flagship international development strategy involving over 140 countries such as Singapore and Indonesia.
Conflux is also launching Conflux 3.0. Key updates include a processing capability of 15,000 TPS and support for large-scale settlement of cross-border payments and real-world assets.
Market hype has long favored this rising star of a company; its market cap jumped from $46M to $650M in under six months, and it has formed notable partnerships including ones with McDonald's China and China Telecom.
It may be very worthwhile to keep an eye on Conflux's next big move!
Circle stock gets clipped: Downgrade deflates post-IPO high
While analysts still see USDC as a pivotal and long-term player in the financial system, they warn that increased competition could hurt CRCL in 2H25. Fed rate cuts and falling retail interest also add to the bearish outlook.
💲 Money in motion: This week's hottest stablecoin industry financing rounds!
