Regulatory crossroads, stablecoins help new era of digital finance

Driven by the growing popularity of global markets and DeFi platforms, the liquidity of stablecoins has soared to over $150 billion. Tether (USDT) leads with 53% market share, followed by USDC (16%) and DAI (6%). The growth in institutional demand reflects their use in hedging cryptocurrency volatility and facilitating cross-border payments. Regulatory scrutiny in the U.S. and the EU is strengthening, focusing on transparency and systemic risks, while analysts predict that stablecoins will continue to grow as traditional finance integrate stablecoins.