Tether and Circle Face Growing Competition as Stablecoin Market Shifts Toward Payments and Real-World Finance

Summary

The article discusses the evolving stablecoin market, noting that growth will increasingly be driven by payments, distribution, compliance, and real-world financial activity rather than just issuance and reserve income. The market is only about 5% developed, with significant growth ahead. Competition is expected from banks, fintechs, and crypto-native issuers, with potential consortium efforts involving major payments players like Visa and Mastercard. Challengers may gain share through transaction volume, merchant adoption, regional dominance, and specific business flows rather than market capitalization. Tether and Circle face rising competitive pressure from new entrants.