The conversation and activity around Stablecoins Picking up again. What started as three subtle mentions in the first executive order If Cryptocurrency signed by President Donald Trump has been rapidly developed. The latest development is that Trump’s own crypto company, World Liberty Financial, announced the launch of its own Stablecoin, USD1At both Ethereum and the Binance chain, with plans to expand to more protocols.
World Liberty Financial says that USD 1 will be able to redeem 1: 1 for the US dollar and supported 100% of short-term US state funds, US dollar deposits and other cash equivalents-but it’s not real history. The real story is that Stablecoins will once again be a center in calls from both the White House and crypto companies.
So the real question is, what is behind this renewed interest?
Stablecoins: an old tool with new speed
Stablecoins benefit from growing away, which, I claim, is pushed down from the White House, and in line with the White House PRO company method for the economy, it is the crypto companies that offer Stablecoins that will benefit the most.
As a rapid more refreshing, Stablecoins is a type of cryptocurrency designed to maintain a Stable valueusually tied to a fiat currency like the US dollar. What gives them stability is the reserves that support them, which is usually a mixture of cash, US government bonds and others assets with low risk. The idea is that for each Stablecoin in circulation there is a corresponding value in the reserve.
But here it becomes interesting, at least for the companies; Issuing Stablecoins has become a large income current. Users exchange billions of dollars for these symbols when a company issues their Stablecoins. Not all that money just sits in a vault. A significant part is parked in short-term US government bonds-income-generating assets. And right now, these bonds pay about 4-5% per year.
It may not sound like much, but when you think that Stablecoin issuers often have tens of billions in reserves. In that scale even means a modest return huge winnings. For example, $ 5% is $ 50 million in annual revenue, and the largest Stablecoin issuers usually have much more than $ 1 billion in their reserves.
Passive income is an important reason why new issuers like Trump’s world -free economic And even traditional financial giants like Fidelity Now enters the Stablecoin Arena.
Retail and institutional use case for StableCoins
Stablecoin issuers are only half of the equation. The other half is the user’s demand. To grow, a Stablecoin must be used – and historically, most users have been trader and investors. For them, Stablecoins act as a temporary safe sanctuary in volatile markets, a place to park assets between trade or as the necessary token to enter a specific trading pair.
But on the institutional side, another change takes place.
According to a new coin base (Nasdaq: Coins) and EY report with the title “Increasing allocations in a maturity market: 2025 Institutional Investor Digital Assets Survey,“ Of the institutions surveyed, 84% said that they either already use or seriously consider stablecoins. Their main reason is that Stablecoins give them transactional convenience and simplified foreign currency.
In other words, Stablecoins offers institutions a frictionless, boundless way to move money, which can lead to significant profits in efficiency and cost savings when you move millions or billions at a time.
The government’s Stablecoin playlist
The US government has been an important driving force behind this Stablecoin resuscitation. For the government, it is not just about being a digital-first, innovative nation but rather a geopolitical strategy related to US finance.
At the first summit in the White House Krypto, State Secretary Scott Bessent said it right away: “We will keep the United States the dominant reserve currency in the world, and we will use Stablecoins to do so.”
Stablecoins allow the United States to digitally export the dollar – which makes it easy for people and institutions worldwide to trade in USD, even without access to US banks. The result this has is more than just Stablecoins that end up in the hands of potential users; But even more important is the increased global demand for Stablecoins leads to more dollars held in reserves, which means increased purchases of US government bonds, resulting in dollar dominance And global influence.
The short end of the stick
For institutions, the case is clear. But for retail investors? It gets shaky.
Most traders do not have to be in Stablecoins around the clock. It is a tool – a parking lot when the markets are volatile or an entrance ticket to a specific trade. It is single and inconsistent use, which means limited long -term demand if new reasons for keeping Stablecoins do not appear.
If Stablecoins will receive mass adaptation on the consumer side, they must be more than just a trading tool. They need real usability.
Imagine users can spend Stablecoins as simple as they do Fiat on essentials such as rent and groceries or pleasant to-have subscriptions and collection. It would make Stablecoins much more useful than they are and can even open a new consumer market. At that time Stablecoins begin to look less like economic tools and more as modern versions of PayPal (Nasdaq: Pypl) or cash app, which I believe is the type of functionality that will be needed to drive widespread adoption.
Until that happens, it is difficult not to see this as another movement with white houses that benefit companies but leave consumers exactly where they started.
Balance stablecoin innovation with challenges
Now more than ever there is an opportunity to Build in and around Stablecoins.
The momentum is there. The government supports it. Companies jump in. The institutions investigate use cases, but the most important challenge – as usual – will solve a pain point that causes users to care and get the product in their hands.
At the end of the day, a product without paying customers will inevitably have a short life. If Stablecoins will go beyond this hype bike, the headlines and cryptotwitter threads, someone will have to find out how to make people actually want to use them in the real world, which we have undoubtedly not seen happening yet.
Watch: Blockchain is much more than digital assets
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