Stablecoin Usage Surged In 2025 as Coinbase Exec Warns US Ban May Grant China Advantage

Core Insights - Stablecoin usage surged significantly in 2025, contributing to the growth of crypto payments and on-chain trading despite a cooling broader market [1] - U.S. policymakers are debating regulations on dollar-pegged digital tokens, with potential implications for global competitiveness, particularly against China [1][8][9] Group 1: Stablecoin Usage and Market Trends - Stablecoin adoption was driven by increased on-chain activity in trading, payments, and yield products, indicating a shift in user interaction with crypto wallets [2][7] - Monthly swap trading volume on Bitget Wallet exceeded $900 million, reflecting a 232% year-over-year increase [2] - On-chain derivatives activity accelerated, with monthly perpetual futures volume nearing $5 billion, marking a 291% increase from the previous year [3] Group 2: Payments and Wallet Utilization - Payments became a significant driver of wallet usage, with spending through Bitget Wallet's crypto-linked card rising more than sixfold since its launch in July [4] - Subscriptions to Bitget Wallet's yield products approached $200 million per quarter by late 2025, over ten times higher than at the beginning of the year [4] Group 3: Regulatory Environment and Competitive Landscape - Regulatory scrutiny in Washington is increasing as stablecoin adoption grows, with potential global implications [6][7] - Concerns were raised that restricting rewards or interest on U.S.-issued stablecoins could undermine their competitiveness, especially as China plans to pay interest on its digital yuan [8][9]