Stablecoin Market Tops $310 Billion as USDT, cirBTC Arrive

The stablecoin market cap rose above $310 billion after adding more than $1 billion in liquidity in under 72 hours. The increase followed two months of steady growth at the start of October. Overall crypto market capitalization has been rising over the same period.

Tether reintroduced USDT on the Bitcoin network through a partnership with Utexo. The reintroduction enables dollar-pegged tokens to be issued and transferred directly on Bitcoin rather than being routed through other blockchains.

Circle launched cirBTC, a token pegged 1:1 to Bitcoin and designed for institutional on-chain use. cirBTC is intended to allow institutions to place tokenized Bitcoin into lending, borrowing and settlement operations without selling their underlying BTC holdings.

A 1:1 wrapped token is backed by an equivalent amount of Bitcoin that is held or custodied off-chain. That backing enables on-chain transactions and credit operations tied to the custodied Bitcoin.

Data from the RWA Foundation shows USDC deposits rose by $881 million over 90 days, the largest increase among major stablecoins. RLUSD recorded $765.3 million in deposits; the token labeled “U” added $474.2 million; and USDe gained $419.1 million. Circle has pursued MiCA compliance in Europe as part of its regulatory work there.

Market participants will monitor further inflows, custody arrangements for wrapped tokens such as cirBTC, and adoption rates among institutional users to measure effects on on-chain liquidity and trading activity in the coming weeks.