The market capitalization of stablecoins on the Solana layer-1 blockchain surged by $900 million over a 24-hour interval on Tuesday.
Stablecoins, blockchain tokens backed by fiat foreign money or debt property, surged to a market cap of $15.3 billion on the Solana community, based on DeFiLlama.
The dramatic surge got here as decentralized finance platform Jupiter launched its JupUSD stablecoin, developed in partnership with artificial stablecoin issuer Ethena.
Solana’s stablecoin ecosystem is dominated by Circle’s USDC (USDC), a dollar-pegged token, which accounts for over 67% of the community’s complete stablecoin market cap.
The surge in stablecoins on Solana displays heightened funding exercise and investor curiosity, because the Solana ecosystem shifts towards changing into a hub of Web capital markets, the place worth and danger are transferred solely by way of onchain rails.
Associated: Coinbase bets on stablecoins, Base and ‘all the pieces alternate’ for 2026
Stablecoins change into crucial plumbing as property transfer onchain
Stablecoin settlement quantity elevated by 87% in 2025, based on monetary ranking company Moody’s Traders Service.
Stablecoins are crucial infrastructure for tokenized real-world property (RWAs), that are bodily or conventional property represented onchain, Moody’s mentioned. Tokenized RWAs require stablecoins for onchain liquidity and settlement.
Tokenizing property opens new use circumstances, like with the ability to use historically illiquid asset lessons akin to artwork, actual property and collectibles as backing collateral for loans in DeFI functions.
The RWA market is projected to surge to $30 trillion by 2030, based on a number of conventional monetary establishments.
Stablecoins are among the many leaders of that development. The overall market cap of overcollateralized stablecoins, tokens backed 1:1 by fiat money deposits and authorities debt securities, is nearing $300 billion, based on RWA.xyz.
Below the GENIUS Act, which was signed into regulation by US President Donald Trump in July 2025, regulated fee stablecoins have to be backed on a one-to-one foundation with high-quality liquid property, successfully excluding algorithmic or under-collateralized fashions.
Algorithmic stablecoins, which use software program or advanced market trades to take care of their fiat foreign money pegs, usually are not acknowledged below the GENIUS Act.
The GENIUS Act additionally prohibits stablecoin issuers from sharing yield immediately with clients, a provision that has created debate in regards to the future position of banks.
Journal: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib
