Fintechs, banks and networks race to issue stablecoins

Fintech companies, banks, payment networks and crypto projects now issue and integrate stablecoins, creating a multi-polar market where distribution and regulatory standing affect which tokens reach users and merchants.

Issuers fall into five categories: crypto-native protocols, fintech platforms, exchanges, payment networks and traditional financial institutions. Crypto-native projects focus on DeFi integration and rapid product changes. Fintechs and banks emphasize compliance and customer distribution. Payment networks concentrate on merchant settlement and acceptance.

Tether’s USDT remains the largest by supply, about $184 billion to $187 billion and primarily used for trading and exchange liquidity. Circle’s USDC is the second-largest at roughly $77 billion to $79 billion, with reserves managed by BlackRock and custodied at BNY Mellon. PayPal’s PYUSD is issued by Paxos and connects directly to PayPal’s consumer and merchant base; Paxos also issues USDP under OCC oversight with cash-equivalent reserves.

New issuers have launched in 2026. Fidelity launched FIDD on Feb. 4, 2026. Tether introduced a U.S.-compliant USAT on Jan. 27, 2026. Other entrants include bank-anchored and regionally focused tokens aimed at local payment and settlement needs.

Payment companies are building settlement and card-linked systems. Visa’s stablecoin settlement network operates in 18 countries and runs at about $4.5 billion on an annualized basis, with plans announced to expand to more than 100 countries by the end of 2026. Mastercard’s card-linked approach covers more than 150 million merchant acceptance points. Fiserv operates a white-label platform, FIUSD, live across 10,000 banks and about 6 million merchants.

DeFi protocols continue to issue alternative designs. MakerDAO, rebranded as Sky, provides on-chain stablecoins convertible within its ecosystem. Ethena’s USDe pursues dollar stability via hedging strategies rather than fiat collateral or overcollateralized loans. Liquity’s LUSD emphasizes protocol immutability. Enterprise-oriented tokens include Ripple’s RLUSD, which reached about $1 billion in supply, and World Liberty Financial’s USD1 at more than $5 billion.

New issuers have reached scale faster than earlier tokens. Ethena’s USDe reached $1 billion in roughly six weeks. Another token, USDG, hit $1 billion in about five months. RLUSD reached a similar scale in roughly 15 months. By comparison, USDT took about three years after launch to reach $1 billion. PYUSD passed the billion-dollar mark in a little over a year.

Infrastructure firms and consumer platforms influence which stablecoins reach end users. On-ramp providers such as Banxa process fiat-to-crypto flows across more than 200 countries under multiple licenses. Messaging and app ecosystems like TON enable stablecoin transfers inside widely used consumer apps.

Major banks including Goldman Sachs, UBS and Barclays are developing tokenized cash projects or consortia for regulated currency solutions, with some preferring tokenized deposits held within the banking system rather than standalone stablecoins.

Market participants point to distribution channels and regulatory reach as the main competitive factors shaping issuer success. The current supply leaders remain crypto-native and fintech-backed tokens, while payment networks and bank-linked projects expand merchant and institutional access.