USDT and USDC Dominate 90% of Stablecoin Market Amid Centralization Debate

As of July 2025, Tether (USDT) and USD Coin (USDC) continue their stronghold over the $250 billion stablecoin market, commanding a combined 90% share. This dominance highlights their critical role in bridging cryptocurrency and traditional finance but also sparks concerns about systemic risks and centralization—a stark contrast to Bitcoin's original vision of decentralization. The growing duopoly raises important questions about the future of stablecoins and their alignment with crypto's foundational principles.

Tether and USDC Command 90% of Stablecoin Market Amid Centralization Concerns

Tether (USDT) and USD Coin (USDC) now dominate the $250 billion stablecoin market, collectively holding a 90% share. This duopoly raises questions about systemic risk as stablecoins increasingly bridge crypto and traditional finance.

The concentration contradicts crypto's foundational ethos of decentralization. Bitcoin's 2009 launch exemplified this ideal, creating a trustless system without centralized control. Today's stablecoin landscape reintroduces counterparty risk—precisely what blockchain sought to eliminate.

Market participants face new vulnerabilities as these fiat-pegged tokens integrate with legacy financial infrastructure. The irony is palpable: decentralized finance's gateway assets now exhibit the very centralization they were meant to disrupt.

South Korea Introduces USDT-to-Cash ATMs for Tourists, Restricts Local Access

South Korea is embracing digital asset payments by allowing foreign visitors to convert stablecoins into fiat currency at Kaia-enabled ATMs. These kiosks, developed through a collaboration between DaWinKS and the Kaia DLT Foundation, support Kaia-issued USDT—a variant of Tether’s USDT resulting from the merger of Klaytn and Finschia. The ATMs are strategically placed in convenience stores and transit hubs, offering withdrawals in 85 currencies or deposits onto local transit cards.

Domestic users are barred from accessing these crypto ATMs, a restriction that has sparked curiosity among locals attempting to bypass the rules. Dr. Sangmin Seo, chairman of the Kaia DLT Foundation, emphasized South Korea’s experimental yet serious approach to fostering the stablecoin industry. The MOVE raises questions about enforcement and whether demand extends beyond tourists.

CoinDCX Employee Arrested in $44M Crypto Heist Linked to Social Engineering

Bengaluru police detained a CoinDCX software engineer following the disappearance of $44 million from the platform. The breach, flagged by on-chain investigator ZachXBT, involved a test transfer of one USDT before hackers drained ₹379 crore across six wallets.

Rahul Agarwal, the arrested employee, claimed ignorance of the compromise but admitted to freelance work via WhatsApp calls with unknown parties. Police discovered ₹15 lakh in his account from suspicious sources, suggesting a Trojan-laden file may have granted hackers access.

CoinDCX CEO Sumit Gupta confirmed the incident after internal probes revealed Agarwal's compromised company laptop. The case highlights persistent vulnerabilities in crypto security infrastructure despite industry growth.