A Federal Reserve note released April 8, 2026 reports that the stablecoin market grew about 50 percent in 2025, reaching a market capitalization of $317 billion by early April 2026. The growth coincided with a White House executive order in January 2025 and the signing of the GENIUS Act on July 18, 2025, which established a formal regulatory framework for U.S. stablecoins. The note highlights that issuers with higher‑quality reserves, such as USDC, have seen stronger adoption, while Tether holds lower high‑quality reserves. It identifies three structural vulnerabilities—complex intermediation chains, vertical integration, and integration with traditional finance—that may increase financial‑stability risks by amplifying interconnections and reducing transparency.
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