The New Era of Stablecoins: The Four Powers Compete for Digital Dollar Dominance

In 2025, the United States passed the GENIUS Act, completely changing the game for stablecoins and triggering an unprecedented "digital dollar battle." Four powerful alliances are fiercely competing in this new era, each with its unique characteristics and strategies.

GENIUS Act: The New Constitution for the Stablecoin Industry

The full name of the GENIUS Act is the "Guiding and Establishing the National Innovation Act for U.S. Stablecoins," which sets clear rules for the stablecoin industry:

• Reserves must be fully supported on a 1:1 basis.
• 10 billion USD market cap is a regulatory watershed
• Direct payment of interest is prohibited.
• Large technology companies issuing stablecoins require strict approval

Analysis of the Four Major Forces

1. Compliance Honor Student Alliance (USDC)

With USDC issued by Circle as the core, strict regulatory compliance has won the trust of institutional investors. However, there is a conflict of interest between Circle and its main distributor Coinbase, and Circle is seeking more independence through an IPO.

2. Offshore Empire (USDT)

Tether's USDT is the largest stablecoin by market capitalization, with impressive profitability. Its advantages lie in flexible investment strategies and extremely low channel costs. In response to new legislation, Tether has adopted a dual-track strategy and is seeking compliance pathways through strong political backing.

3. Political elite group (USD1)

The USD1 Alliance brings together political stars, distribution giants, and sovereign capital, adopting a "top-down" market development strategy. Its political resources are both the greatest advantage and may become a source of uncertainty in the future.

4. Traditional banks' counterattack

Represented by JPMD from JPMorgan Chase, the deposit tokenization products launched by traditional banks have advantages such as paying interest and high credit, but mainly serve the institutional market.

Other Participants

• Stripe: Provides infrastructure services
• PayPal: Attract users through rewards program
• Walmart and Amazon: Seeking cooperation under legal restrictions
• Meta: Cautiously returning, focusing on actual payment scenarios

Future Outlook

The stablecoin market may show a trend of differentiation:

• Institutional Market: Led by Banking Alliances
• US Retail Market: USDC Leads
• Emerging Markets: USDT Dominates
• Special political scenario: USD1 plays a role

The battle of stablecoins is not only a competition of technology and business models but also a contest of financial philosophies and governance models. For ordinary users, competition brings more choices and better services. The era of digital dollars has arrived, and we are all witnesses and participants in this historical process.