Stablecoins Supply Exceed $250B Milestone as Yields and Treasury Stakes Soar

The total supply of stablecoins has crossed the $250 billion mark, indicating massive inflows into the cryptocurrency industry. While USDT and USDC dominate the space, there has been a massive growth in yield-bearing stablecoins.

Stablecoin supply has passed $250 billion for the first time.

• Yield-bearing stablecoins are growing fast. Ethena has grown to nearly $6 billion since launch.
• Tether and Circle still dominate, holding a combined 86% of outstanding supply.
• Issuer diversity is increasing.… pic.twitter.com/mrokz8u4OL

— Delphi Digital (@Delphi_Digital) June 18, 2025

Yield-Bearing Stablecoins Attract Significant Interest

Ethena, a yield-bearing stablecoin protocol, has gained significant attention since its launch in 2023. Current market data shows that the asset has a circulating supply of about $6 billion and a $1.73 billion market cap. For context, yield-bearing stablecoins are cryptocurrencies pegged to stable assets like the US dollar. They generate passive income or “yield” for holders, usually through interest or other reward mechanisms.

These stablecoins have attracted both retail and institutional players looking to earn from their stagnant USDT and USDC holdings. This shift reflects a growing appetite for price stability and digital dollars equipped with income-generating features.

Despite rising competition, the market remains primarily dominated by Tether (USDT) and Circle (USDC). Together, they hold approximately 86% of the total market share. Moreover, over $120 billion of U.S. Treasuries are currently held within stablecoin reserves.

This shift indicates that these assets are no longer a niche but a serious component in the broad liquidity ecosystem. Additionally, issuer diversity is soaring as over ten stablecoins currently have a circulating supply exceeding $1 billion. 

Overall, the growth and diversity of the stablecoin ecosystem indicates that the current market is different from previous cycles. The evolution is reshaping how crypto, traditional finance, and regulation intersect. 

US Senate Passes GENIUS Bill

Meanwhile, this milestone coincides with the United States advancing legislation to regulate the sector. On Tuesday, the Senate passed the “Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act” with bipartisan support, sending it to the House of Representatives for further consideration.

President Donald Trump has urged the House to move swiftly on the GENIUS Act so it can be signed into law. The bill seeks to create a regulatory framework for dollar-pegged cryptocurrencies, requiring stablecoins to be fully backed by U.S. dollars or equivalent liquid assets.