Lately, stablecoins have truly broken out of their niche.

Perhaps it was Circle’s successful IPO, or the accelerating clarity of regulations across multiple jurisdictions. But suddenly, the wishlist of crypto entrepreneurs has shifted — from NFT, DeFi, and Web3 social — to stablecoins.Several data points show that the wave of venture funding for stablecoin startups has surpassed the 2021 peak and set new records.

Market data indicates that in Q3 and Q4 of 2024, the stablecoin and payments sector recorded 43 and 42 venture deals, respectively, marking the highest quarterly totals ever. For the full year, the number of transactions surpassed the 2021 high for the first time. In Q1 2025, the sector accounted for 7.5% of all venture deals.

What does this mean? Not only has capital returned — it’s coming back even stronger than in the last bull cycle. And it’s not just about volume: the quality of participants is rising, too.

In the past, stablecoin investments were primarily backed by crypto VCs and specialized funds. Now, we are seeing an influx of traditional financial institutions, payments giants, and cross-border banks — even investors who previously focused on AI or renewable energy are showing interest in this hybrid of fintech and crypto.

This surge is no longer just speculative hype. It is the result of a clear business logic plus regulatory tailwinds, driving a rational wave of institutional participation.In short: stablecoins have become the favorite target of venture investors and the new hotspot for institutional capital. From funding data to policy support to project deployment, the stablecoin sector’s upward trajectory keeps being validated.

Today, this article will explore why stablecoins have suddenly become the “sweet spot” for entrepreneurs, what their core appeal is, and who should be paying close attention.

Many still think of stablecoins as simply “crypto’s version of the dollar,” or just a “remittance tool” like Tether and USDC.But today’s stablecoins are no longer just for payments. They have evolved from tool-based currencies into infrastructure-level money. That’s the critical shift.

The most direct logic: issuers of stablecoins earn yield on the float.

Take USDC or USDT as examples. When users exchange dollars for stablecoins, the actual fiat is deposited into bank accounts. These funds are used to buy Treasuries or other low-risk yield assets, earning 3–5% annualized returns, or more.You may not pay a fee, but the platform is making steady revenue simply by holding your money.

This is why stablecoin business models are inherently cash-flow-positive. Compared to DeFi projects that require high-frequency trading or huge user bases, stablecoins are more resilient and sustainable.

Stablecoins are becoming the intermediary currency for cross-border trade.Especially in countries and regions facing USD tightening and sensitive FX policies, corporate settlements in USDC/USDT have become real demand.Companies like Circle, Stably, and First Digital are all building solutions here.

Stablecoins bridge crypto technology and traditional finance. They don’t need a bank account, don’t rely on SWIFT, and offer superior efficiency, lower costs, and near-instant settlement.Many SMEs, exporters, and supply chain finance firms are organically adopting stablecoins for cross-border transactions.

Since 2024, the regulatory landscape has shifted dramatically:

• The GENIUS Act in the U.S.

• Singapore’s DTSP regulations

• Hong Kong’s licensing framework with a clear launch timeline

Regulators have moved from hesitant suppression to encouraging compliant development — a critical inflection point for any financial-grade application to go mainstream.Especially after the GENIUS Act was enacted and Circle’s IPO accelerated, the entire sector received a confidence boost.

When sovereign governments say, “You are legally allowed to issue stablecoins,” capital gets the conviction to jump in.

If you are an entrepreneur considering stablecoins, it helps to understand which categories of projects are getting the most traction and funding.

These startups focus on securing licenses from local regulators.For example, in Hong Kong, the licensing regime will officially begin in August 2025.Applicants already include Ant Digital Tech, Lianlian Pay, Xiaomi’s Tianxing Bank, among others. First Digital has launched FDUSD, which has gained listings on major exchanges and become the flagship Hong Kong-born stablecoin.

These projects target specific use cases, such as:

• Cross-border e-commerce payments

• AI compute procurement

• In-game payments

• RWA yield settlements

For instance, Stably partnered with Southeast Asian platforms to integrate stablecoins into local e-commerce payment rails.

Building “stablecoin banks” or “clearing networks” is also heating up.Projects like Connext, Noble, and LayerZero are building on-chain settlement hubs.

From a macro perspective, the importance of stablecoins isn’t just about payments. They are the starting point of the RWA (Real World Asset) era.

This part of the stablecoin thesis is often underestimated but holds the most long-term potential.As Circle noted in its prospectus:Stablecoins are the “programmable dollars” of the digital economy — like electricity or water, the base infrastructure of digital finance.

• RWA bonds, gold, green energy revenues — all need stablecoins for settlement.

• Corporate payroll, invoice management, and global clearing need stablecoins.

• DePIN, AI chains, Web3 gaming economies all need a stable, transparent unit of account.

At this point, USDC and FDUSD are no longer just “one dollar.”

We are moving from multi-chain experimentation toward mainchain dominance + asset tokenization, with stablecoins as the core value layer.

In short, stablecoins have evolved from a crypto “utility token” into regulated money and foundational infrastructure.They are no longer just products for traders — they are the key to connecting on-chain and off-chain economies.From an entrepreneurial perspective, stablecoins are among the few crypto sectors that combine:

• Cash-flow business models

• Regulatory endorsement

• Diverse application scenarios

That’s precisely why we’re seeing record funding rounds, a flood of institutional capital, and even traditional tech companies eager to participate.

If you’re thinking about what to build in the next cycle, stablecoins might be that rare opportunity — conservative and steady, but with enormous future potential.

Lately, stablecoins have truly broken out of their niche.

Perhaps it was Circle’s successful IPO, or the accelerating clarity of regulations across multiple jurisdictions. But suddenly, the wishlist of crypto entrepreneurs has shifted — from NFT, DeFi, and Web3 social — to stablecoins.Several data points show that the wave of venture funding for stablecoin startups has surpassed the 2021 peak and set new records.

Market data indicates that in Q3 and Q4 of 2024, the stablecoin and payments sector recorded 43 and 42 venture deals, respectively, marking the highest quarterly totals ever. For the full year, the number of transactions surpassed the 2021 high for the first time. In Q1 2025, the sector accounted for 7.5% of all venture deals.

What does this mean? Not only has capital returned — it’s coming back even stronger than in the last bull cycle. And it’s not just about volume: the quality of participants is rising, too.

In the past, stablecoin investments were primarily backed by crypto VCs and specialized funds. Now, we are seeing an influx of traditional financial institutions, payments giants, and cross-border banks — even investors who previously focused on AI or renewable energy are showing interest in this hybrid of fintech and crypto.

This surge is no longer just speculative hype. It is the result of a clear business logic plus regulatory tailwinds, driving a rational wave of institutional participation.In short: stablecoins have become the favorite target of venture investors and the new hotspot for institutional capital. From funding data to policy support to project deployment, the stablecoin sector’s upward trajectory keeps being validated.

Today, this article will explore why stablecoins have suddenly become the “sweet spot” for entrepreneurs, what their core appeal is, and who should be paying close attention.

Many still think of stablecoins as simply “crypto’s version of the dollar,” or just a “remittance tool” like Tether and USDC.But today’s stablecoins are no longer just for payments. They have evolved from tool-based currencies into infrastructure-level money. That’s the critical shift.

The most direct logic: issuers of stablecoins earn yield on the float.

Take USDC or USDT as examples. When users exchange dollars for stablecoins, the actual fiat is deposited into bank accounts. These funds are used to buy Treasuries or other low-risk yield assets, earning 3–5% annualized returns, or more.You may not pay a fee, but the platform is making steady revenue simply by holding your money.

This is why stablecoin business models are inherently cash-flow-positive. Compared to DeFi projects that require high-frequency trading or huge user bases, stablecoins are more resilient and sustainable.

Stablecoins are becoming the intermediary currency for cross-border trade.Especially in countries and regions facing USD tightening and sensitive FX policies, corporate settlements in USDC/USDT have become real demand.Companies like Circle, Stably, and First Digital are all building solutions here.

Stablecoins bridge crypto technology and traditional finance. They don’t need a bank account, don’t rely on SWIFT, and offer superior efficiency, lower costs, and near-instant settlement.Many SMEs, exporters, and supply chain finance firms are organically adopting stablecoins for cross-border transactions.

Since 2024, the regulatory landscape has shifted dramatically:

• The GENIUS Act in the U.S.

• Singapore’s DTSP regulations

• Hong Kong’s licensing framework with a clear launch timeline

Regulators have moved from hesitant suppression to encouraging compliant development — a critical inflection point for any financial-grade application to go mainstream.Especially after the GENIUS Act was enacted and Circle’s IPO accelerated, the entire sector received a confidence boost.

When sovereign governments say, “You are legally allowed to issue stablecoins,” capital gets the conviction to jump in.

If you are an entrepreneur considering stablecoins, it helps to understand which categories of projects are getting the most traction and funding.

These startups focus on securing licenses from local regulators.For example, in Hong Kong, the licensing regime will officially begin in August 2025.Applicants already include Ant Digital Tech, Lianlian Pay, Xiaomi’s Tianxing Bank, among others. First Digital has launched FDUSD, which has gained listings on major exchanges and become the flagship Hong Kong-born stablecoin.

These projects target specific use cases, such as:

• Cross-border e-commerce payments

• AI compute procurement

• In-game payments

• RWA yield settlements

For instance, Stably partnered with Southeast Asian platforms to integrate stablecoins into local e-commerce payment rails.

Building “stablecoin banks” or “clearing networks” is also heating up.Projects like Connext, Noble, and LayerZero are building on-chain settlement hubs.

From a macro perspective, the importance of stablecoins isn’t just about payments. They are the starting point of the RWA (Real World Asset) era.

This part of the stablecoin thesis is often underestimated but holds the most long-term potential.As Circle noted in its prospectus:Stablecoins are the “programmable dollars” of the digital economy — like electricity or water, the base infrastructure of digital finance.

• RWA bonds, gold, green energy revenues — all need stablecoins for settlement.

• Corporate payroll, invoice management, and global clearing need stablecoins.

• DePIN, AI chains, Web3 gaming economies all need a stable, transparent unit of account.

At this point, USDC and FDUSD are no longer just “one dollar.”

We are moving from multi-chain experimentation toward mainchain dominance + asset tokenization, with stablecoins as the core value layer.

In short, stablecoins have evolved from a crypto “utility token” into regulated money and foundational infrastructure.They are no longer just products for traders — they are the key to connecting on-chain and off-chain economies.From an entrepreneurial perspective, stablecoins are among the few crypto sectors that combine:

• Cash-flow business models

• Regulatory endorsement

• Diverse application scenarios

That’s precisely why we’re seeing record funding rounds, a flood of institutional capital, and even traditional tech companies eager to participate.

If you’re thinking about what to build in the next cycle, stablecoins might be that rare opportunity — conservative and steady, but with enormous future potential.