According to data from defillama.com and artemisanalytics.com, as of August 11, the total value of the stablecoin market has exceeded $270 billion. In July of this year, Trump signed the GENIUS Act, marking the first formal establishment of a stablecoin regulatory framework in the U.S. However, since the market began anticipating the GENIUS Act, stablecoins have already become a fiercely contested battleground.

Fireblocks' "2025 State of Stablecoins" report revealed that 49% of global institutions have already used stablecoins for payments, while 41% are piloting or planning to use them. In this race among giants to dominate the stablecoin space, which stablecoin chains are worth watching? And why are these giants investing in stablecoin chains?

1. Which Stablecoin Chains Are Worth Watching?

Circle: Arc

On August 12, Circle announced via its official blog the launch of Arc, an open Layer-1 blockchain designed specifically for stablecoin financial scenarios. Arc uses USDC as its native gas token, offering low and predictable dollar-denominated fees. It also features a built-in institutional-grade forex engine for 24/7 automatic settlement between stablecoins. Arc employs the Malachite high-performance consensus mechanism, supporting sub-second finality and optional privacy protection. The chain is EVM-compatible and targets use cases such as cross-border payments, stablecoin derivatives, on-chain credit, and capital market settlements. Developers can build applications like cross-border payments, stablecoin forex perpetual contracts, on-chain credit with off-chain trust, capital market settlements, tokenized collateral, agent commerce, and programmable payments. A public testnet is expected in the fall of this year, with the mainnet launching in 2026.

With the launch of Arc, Circle reported a 53% year-over-year increase in total and reserve revenue for Q2, reaching $658 million. Circle stated that Arc is "built for stablecoin finance," marking a significant milestone in its mission to "provide a full-stack platform for the internet financial system." Arc will be fully integrated into Circle's platform and services while maintaining interoperability with dozens of other partner blockchains supported by Circle.

Circle CEO Jeremy Allaire noted in an interview that with the U.S. Congress passing the GENIUS Act, which establishes a clear regulatory framework for stablecoin businesses, this sector has become the most dynamic in the crypto market. Circle will explore the application of blockchain payment systems in traditional financial institutions. Stablecoin technology is gaining attention from traditional financial institutions and policymakers, potentially unlocking new use cases in payments and commerce.

Stripe & Paradigm: Tempo

On August 11, reports emerged that fintech giant Stripe and crypto venture capital firm Paradigm are collaborating to develop Tempo, a high-performance, payment-focused Layer-1 blockchain.

Tempo uses the same programming language as Ethereum, allowing developers to migrate existing smart contracts easily. It aims to support high-frequency, low-latency payment transactions, particularly focusing on real-time stablecoin settlements and cross-border payments. By leveraging blockchain technology, Tempo seeks to bypass traditional intermediaries like Visa and Mastercard, significantly reducing transaction costs and improving efficiency. The project is currently in stealth mode, with a five-person team. It remains unclear whether Tempo will issue its own native token.

Tempo's launch marks Stripe's shift from a payment intermediary to a blockchain infrastructure builder. By controlling stablecoin issuance (Bridge), wallet access (Privy), and transaction settlement (Tempo), Stripe aims to create a complete payment ecosystem, revolutionizing traditional payment processes.

USDT: Plasma

In February of this year, stablecoin company Plasma raised $24 million to develop a new blockchain for Tether's USDT.

Plasma is an EVM-compatible Proof-of-Stake (PoS) blockchain running on PlasmaBFT, an improved Fast HotStuff design optimized for high-throughput, low-latency stablecoin transfers. Its execution layer is built on Reth, ensuring full EVM compatibility. Plasma employs a dual-validator architecture: one validator cluster handles consensus security, while another specializes in gas-free USDT transfers.

Plasma offers zero-fee USDT transfers, designed for basic USDT payments and operating on a parallel block layer to avoid mainnet congestion. Users can opt for slightly longer wait times to enjoy fee-free transfers. Alternatively, they can pay transaction fees using authorized tokens (e.g., USDT or BTC) without needing a dedicated gas token, as an off-chain system automatically converts them into Plasma's native gas token, XPL, at market rates.

Plasma co-founder Paul Faecks revealed that the new blockchain will be built on the Bitcoin network and attract users with zero-fee USDT transactions. Plasma's focus on stablecoin transactions means it can process and settle transactions quickly.

Tether: Stable

Stable is an EVM-compatible Layer-1 blockchain launched by Tether, aiming to replace general-purpose blockchains in cross-border payments and institutional settlements with zero-fee transactions, high throughput, and a network of compliant validator nodes. Key features include native USDT gas, sub-second confirmations, and compliance.

On July 2, Stable released its roadmap:

• Phase 1 (USDT Base Layer): USDT as the native gas token, sub-second block times and finality, and a stable wallet for better UX.

• Phase 2 (USDT Experience Layer): Optimistic parallel execution for higher throughput, USDT transfer aggregators, and dedicated block space for enterprises.

• Phase 3 (USDT Full-Stack Optimization Layer): Upgrade to a DAG-based consensus for speed and resilience, plus expanded developer tools for dApp growth.

Cosmos: Noble

Noble is a native asset issuance chain built on the Cosmos SDK, positioning itself as a "world-class issuance hub for interoperable digital assets." It supports not only stablecoin issuance but also the tokenization and issuance of real-world assets.

In September 2023, Circle chose Noble as the launch platform for native USDC in the Cosmos ecosystem, enabling cross-chain transfers via the IBC protocol. In December 2024, Noble launched USDN, a dollar-denominated stablecoin backed by short-term U.S. Treasuries using M^0's "permissioned minting" mechanism, offering an estimated 4.2% annual yield. Additionally, fintech firm Monerium introduced EURe, the first native euro stablecoin in the Cosmos ecosystem, on Noble.