USDT and Stablecoins: Surging Transaction Volumes Spark Regulatory Debate

Stablecoins, particularly USDT, have processed an astounding $35 trillion in on-chain transactions over the past year, with an average circulating supply of $195 billion, according to recent analytics. These digital assets have become essential for crypto trading, loans, and cross-border payments. However, their classification as money remains a contentious issue, as highlighted by IMF Deputy Managing Director Bo Li at the 2025 World Economic Forum. The regulatory ambiguity surrounding stablecoins like USDT continues to fuel debates among policymakers and financial institutions, even as their adoption and utility in the crypto ecosystem soar.

IMF Official Challenges Stablecoins' Role as Money Amid Surging Transaction Volumes

Stablecoins processed $35 trillion in on-chain transactions over the past year, with a circulating supply averaging $195 billion, according to recent analytics. These tokens have become indispensable for crypto trading, loans, and cross-border payments. Yet their classification as money remains contentious.

IMF Deputy Managing Director Bo Li highlighted the regulatory ambiguity at the 2025 World Economic Forum in Davos. "Are stablecoins part of M0, M1, or a new category altogether?" he asked. Misclassification could disrupt banking reserves and regulatory frameworks. Li warned that some policy experiments may fail under real stress tests.

The debate coincides with stablecoins' deepening integration into crypto markets. Traders cycle them between Bitcoin and altcoins, while payment platforms adopt them as digital rails. Their utility is undeniable—but so is the need for clarity.

Africa’s Stablecoin Boom: An ‘Economic Lifeline’ for Emerging Markets

Stablecoins are emerging as a critical financial tool in Africa, with one-third of Nigeria's GDP reportedly conducted in USDT, according to BitMEX founder Arthur Hayes. A founder of a Nigerian stablecoin platform has endorsed this view, highlighting the role of dollar-pegged cryptocurrencies in supporting marginalized communities.

The adoption of stablecoins reflects a broader trend of crypto integration in emerging markets, where volatility in local currencies drives demand for reliable digital assets. This shift underscores the growing importance of blockchain-based solutions in global finance.

Tron (TRX) Overtakes Dogecoin in Market Cap as Stablecoin Utility Fuels Growth

Tron's TRX has surpassed Dogecoin in market capitalization, now ranking among the top nine cryptocurrencies globally. With a market cap of $26 billion, TRX edges out DOGE's $24.6 billion, despite only a 1.05% weekly price increase. The growth stems from Tron's dominance in stablecoin transactions, particularly Tether (USDT), where it processes over 50% of all volumes—$80.7 billion—thanks to faster speeds and negligible fees.

This shift underscores a broader market trend favoring utility-driven tokens over meme coins. While dogecoin relies on community hype and celebrity endorsements, Tron's real-world payments infrastructure is attracting institutional interest. A proposed TRX ETF is under regulatory review, potentially accelerating adoption further.

The crypto hierarchy is evolving. Assets with tangible use cases, like TRX's stablecoin ecosystem, are outperforming speculative bets. Dogecoin may regain momentum if its own ETF materializes, but for now, Tron's infrastructure play is winning.