GENIUS Stablecoin Bill Boosts Yield-Bearing Stablecoins: USDe Up 70%, USDS Up 23%

July witnessed the stablecoin market hit an all-time high of $261B with record CEX volumes, as regulatory clarity from the GENIUS Act and mixed CBDC initiatives highlight a shifting digital asset environment.

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Summary

In July, the stablecoin market achieved a record $261 billion, marking a 4.87% monthly rise and 22 consecutive months of growth, while non-USD stablecoins surpassed a $1B market cap. Despite a reduced market share of 6.64% due to a broader crypto rally, crypto-fiat pair volumes on CEX hit a record $41.7 billion. Notable movements include Falcon Finance’s USDf rising 121% to $1.07B and Ethena Labs’ USDe increasing by 43.5% to $7.6B—a figure that conflicts with earlier reports of a 70% surge. Additionally, the GENIUS Act, signed on July 18, established a regulatory framework for payment stablecoins, and global CBDC initiatives showed mixed progress.

Terms & Concepts
  • Stablecoin: A cryptocurrency pegged to a stable asset, designed to minimize price volatility.
  • CBDC: Central Bank Digital Currency, a digital form of a country's fiat currency issued by its central bank.
  • GENIUS Act: A federal regulatory framework for payment stablecoins requiring full 1:1 backing and monthly reserve disclosures.