Let the stablecoin wars begin.

This is something that I wrote a great deal about throughout 2025. What took place in the United States Congress was huge. People can debate whether this was a positive or not. What cannot be disputed is that this is opening the door for enormous growth.

The stablecoin market is going to explode.

Institutions now have regulatory clarity in the largest market. More importantly, it is tied to the global reserve currency. Here is where the USD stablecoin explosion is going to emerge.

I covered how a number of banks are going to enter the arena. We will likely see something regarding that by the end of the year. My guess is the full rollout by the majority of banks will be in 2026.

However, there are others entering the realm. A large crypto name, Metamask, is about to enter.

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Metamask To Issue Stablecoin

Crypto wallet provider might have leaked some information.

A MetaMask stablecoin could debut as early as Thursday, a source knowledgeable of the initiative confirmed to Decrypt.

The Ethereum wallet provider, which will team up with payment services provider Stripe, will introduce the mmUSD stablecoin as the main trading pair for its various services, according to an Aave governance proposal that appeared last week but was subsequently deleted. DLNews first reported on the deleted proposal. Stablecoin platform M^0 is reportedly supporting the effort.

This should not be a surprise to anyone. It seems likely that most financial institutions (or platforms) will issue a stablecoin. I wrote how we are going to see more than 1,000 issued over the next few years. Of course, a small handful will dominate the total transactions, with the rest filling niche roles.

A few major firms issued their intentions to the public.

Multiple companies in recent months have announced stablecoin projects or said that they were exploring them, including banking giants JP Morgan Chase and Bank of America, and brokerage Robinhood.

I hypothesize that Metamask will not be the last crypto entity to bring out a stablecoin. Others will follow.

My guess is that we are not looking at this being relegated to the financial world. The GENIUS Act did make it a bit more difficult for non-financial entities to enter the market. However, there was a path they could follow although it wasn't totally clear how that is achieved.

That said, Metamask's main business is financial, something that qualifies it under the law.

Why So Many Stablecoins?

Some will think this is overkill.

Why is there the need for so many stablecoins? Just use USDT and be done with it.

The challenge with this viewpoint is the fact that we are rapidly entering a time where the interconnectivity of things is growing. Swapping of tokens is getting easier by the day. Tokenization is happening at every level, something that will accelerate through the rest of the decade.

We also have to consider the concept of AI agents and the agentic Internet.

Asking why we need so many stablecoins is akin to asking why is everyone setting up a website? Do we need billions of websites?

It is evident that most traffic goes to the top 100 sites. Everyone else fights over scraps. That does not mean, however, that the other sites are useless. To the users, there is utility.

Stablecoins will be the same way. On a platform, such as Metamask, there will be the coin. It will provide specific utility to MM wallet users. It basically becomes the default pair on there.

With DeFi infrastructure expanding on a consistent basis, applications are going to offer more financial services, providing utility to a stablecoin. This provide an opportunity for the issuer.

Many will be target specific. By this I mean we will not see much expansion outside of that platform. The in-house use will expand via the connection to more widely accepted coins such as USDT, USDC, or some bank coins. At the same time, there will be the pairing with ETH, BTC, and most other crypto-assets. This really starts to take shape once real world assets are tokenized in large numbers.

Metamask has 100 million users, a number that surpasses all of the major banks. The deposits are $55 billion, a drop in the bucket compared to the trillions US banks are sitting upon. This is where we see an interesting dynamic. Smaller users are with the likes of Metamask and Robinhood. Yet the major money is with the major institutions.

Both will be working towards greater stablecoin adoption simply due to the fact we are facing both starting to enter the market.

The fun is just getting started.

Posted Using INLEO