Newton Gitonga
Stablecoins have gained traction as the United States plans inclusive regulations with the GENIUS bill.
That comes as the sector sees impressive growth, with the overall stablecoin supply surpassing the $250 billion milestone for the first time.
Meanwhile, yield-bearing stablecoin protocol Ethena is at the core of this growth.
Coinmarketcap shows the protocol’s circulating supply has surpassed $6 billion, reflecting tremendous growth for ENA’s network since its 2023 debut.
Ethena’s rise has grabbed attention as the project seems ready to shake an industry dominated by Tether (USDT) and Circle (USD Coin).
The shift underscores new appetite in the market, with users interested in price stability and digital dollars with income-generating mechanisms.
Yield-bearing stablecoins function like DeFi savings accounts.
They aim to transform the crypto sector by allowing dollar-pegged token holders to earn passive income while enjoying the asset’s stability.
Yield-bearing stablecoins have attracted retail and institutional players looking to earn from their stagnant USDT and USDC holdings.
Stablecoins surpass $250B milestone
DeFiLlama data shows that the global stablecoin supply topped the $250 billion mark, confirming massive inflows into the cryptocurrency industry.
Indeed, the current market is different from previous cycles.
The United States Treasury has locked around $120 billion in stablecoins, making these assets a serious component in the broad liquidity ecosystem.
Moreover, the prevailing landscape highlights soaring user diversity.
More than ten stablecoins have a circulating supply exceeding $1 billion.
While USDT and USDC dominate the space, accounting for 86% of the stablecoin market, the growth in new entrants appears noticeable.
Ethena has seen massive growth since launching in 2023.
Its circulating supply is $6.08 billion with a $1.73 billion market cap.
The regulatory side
Regulation is among the most crucial aspects amid the thinning lines between DeFi and TradiFi.
Meanwhile, the stablecoin sector has grabbed regulatory attention globally.
Brazil’s central bank believes they can cause capital flow instability.
Moreover, non-US stablecoin issuers have seen increased traction, possibly due to the United States’ unclear policies.
However, this might change as the US Senate passes the GENIUS stablecoin bill, which adopts innovative-centric regulations.
Ethena to unlock instant liquidity for BlackRock’s BUILD holders
In other updates, Ethena Labs has collaborated with Securitize and BlackRock to launch a USDtb liquidity smart contract.
BUIDL now has 24/7 on-chain liquidity via @ethena_labs
We’ve partnered with Ethena to enable atomic swaps from BlackRock’s BUIDL to USDtb—unlocking new composability, liquidity, and accessibility for the world’s largest tokenized Treasury fund.
Here’s what it means 🧵👇
The alliance aims to enable 24/7, instant atomic swaps between USDtb and BlackRock’s BUILD.
That represents a key milestone in on-chain interoperability. BUILD investors can enjoy smooth decentralized finance (DeFi) access via USDtb.
According to Ethena Labs:
A direct line of interoperability between USDtb and BUILD will allow more institutional holders to take advantage of USDtb’s integrations and composability.
The partnership opens the gates for massive institutional adoption, which could propel Ethana’s growth in the upcoming times.
The native coin ENA trades at $0.2867 after losing 15% and 25% in the previous week and month.
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