Wall Street Eyes Lucrative Stablecoin Sector

Happy Friday Defiers!

Today’s big story:

• Top U.S. banks are reportedly exploring a joint stablecoin, just days after the Senate advanced the GENIUS Act

Plus:

• Markets: Bitcoin dips under $110K after Trump targets Europe with tariffs
• TRUMP memecoin dinner disappoints
• Hyperliquid token and TVL surge to all-time highs
• Jupiter to launch lending protocol
• Stellar network aims to become top 10 DeFi chain [SPONSORED]

Read more below! But first, please give our sponsors some love; they make this newsletter possible.

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READ MORE: Proof-of-Stake vs. Proof-of-Agreement: Stellar's Security Edge

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Wall Street Explores Joint Stablecoin

Stablecoins have long been touted as crypto’s “killer use case” for their potential to disrupt the trillion-dollar global remittance market by slashing transaction costs and settlement times.

With a crypto-friendly administration in the White House and regulatory clarity on the horizon, the largest banks in the U.S. are exploring the issuance of a joint stablecoin to fend off competition from crypto firms, according to The Wall Street Journal.

And why wouldn’t they want a piece of the action? Tether and Circle are earning billions of dollars in yield from the reserves backing their USDT and USDC stablecoins. In fact, Tether has made more money than BlackRock for the past two years.

The stablecoin market has nearly doubled in market capitalization to $228 billion since January 2024. Venture firm Spartan Group expects this figure to approach $2 trillion by 2028.

Stablecoin Supply - TokenTerminal

Fintechs like Paypal, Stripe, and Revolut have already begun to blur the lines between TradFi and DeFi, with Paypal’s PYUSD making inroads into DeFi ecosystems across multiple chains.

With global adoption rising — stablecoins generated a whopping $15.6 trillion in onchain transfer volume last year — and crypto firms like Circle, Coinbase and BitGo reportedly planning to apply for bank charters, legacy financial institutions are undoubtedly feeling the pressure to “catch up.”

Have a great weekend!

yyctrader, Degen in Chief at The Defiant

📈 Markets in the last 24 hrs:

	TICKER	VALUE	24H
	Bitcoin	$109,381	-1.97 %
	Ethereum	$2,578.4	-2.97 %
	XRP	$2.37	-2.52 %
	BNB	$669.44	-1.62 %
	Solana	$181.29	1.20 %

This is the news that mattered in the past 24 hrs:

1. Crypto markets dipped sharply on Friday after President Trump announced new trade tariffs on European imports. BTC and ETH dipped by 2% and 3%, respectively.
2. TRUMP memecoin plunges 15% as presidential dinner disappoints.
3. Hyperliquid’s HYPE token soars to an all-time high above $35 driven by regulatory optimism.
4. JUP surged on the news that DEX aggregator Jupiter is teaming up with Fluid to launch a new lending protocol, Jupiter Lend.

🎬WATCH

In our latest podcast, we interview Shaw Walters, the founder of Eliza Labs, one of the biggest projects at the intersection of crypto and AI.

We talk AI, but Shaw also talks passionately about why the current financial system is broken — “immoral” even — and how crypto can help us break free. But only if we manage to move past the casino phase. Give it a listen, it’s a heated one.

That’s it for today — if you enjoyed this newsletter, tell your friends! https://thedefiant.io/subscribe