The New Order of Stablecoins: The Reconstruction of Dollar Hegemony

The stablecoin market is undergoing fierce competition, with various forces making moves to occupy advantageous positions in this emerging field. From the underground economy of the third world to cross-border transactions by Indian expatriates, stablecoins are breaking down the barriers of the traditional financial system, challenging the status of Wall Street, Silicon Valley, and major banks.

Tether's Diversification Strategy

The recently released stablecoin report for 2025 shows that USDT dominates the fields of payments, cross-border settlements, and personal remittances. However, Tether's kingdom is not invulnerable. On one hand, USDC is eating into market share through partnerships with exchanges; on the other hand, emerging projects like Ethena are attracting exchange collaborations through innovative mechanisms.

Tether has not focused all its energy on stablecoins, but has extended its reach into various fields such as Bitcoin mining, password management, and solar energy nodes in Africa. It is particularly worth mentioning that Tether's investment in the Bitcoin ecosystem has been consistent, reflecting its long-term optimism for Bitcoin from the early Omni layer to the recent Rootstock sidechain.

The Divergence of the Stablecoin Alliance

Currently, the stablecoin market has mainly formed four major camps:

1. USDT Camp: Composed of a certain trading platform, a certain public chain, and related companies.
2. USDC camp: includes a certain exchange and issuer
3. USDG camp: composed of a stablecoin issuer and multiple exchanges and brokerages.
4. USDe Camp: Emerging Projects Collaborating with Multiple Exchanges

These alliances attract funding and compete for market share through various mechanisms. For example, USDC collaborates with exchanges by sharing profits, while USDe provides tokens to exchanges in exchange for support.

The New Battlefield of Institutional Markets

As institutional investors' interest in crypto assets grows, competition for stablecoins in the institutional settlement space is becoming increasingly fierce. USDC has taken the lead in connecting with the traditional financial system, while USDe is also collaborating with large asset management companies to issue stablecoin products aimed at institutions.

Conclusion

The competition in the stablecoin market has entered its second decade. From the initial single market to today's multi-party competition, stablecoins are reshaping the landscape of dollar hegemony. The market hopes to break the monopoly and create a healthier competitive environment. As stablecoins increasingly gain prominence in the global financial system, their future development will impact the entire cryptocurrency industry and even the traditional financial market.