The stablecoin market is reportedly outgrowing the larger cryptocurrency sector following recent U.S. legislation.<\/p>\n
That\u2019s according to a report<\/a> Tuesday (Sept. 30) by CoinDesk, citing findings from JPMorgan<\/a> that showed that the $300 billion stablecoin market has grown 42% so far this year, double the 21% growth in the overall crypto market.<\/p>\n Since the GENIUS Act \u2014 America\u2019s first piece of major stablecoin legislation<\/a> \u2014 was signed in July, the stablecoin market cap has risen 19%, underlining how regulation has driven adoption, the bank\u2019s analysts said.<\/p>\n Circle\u2019s USDC seems to be the biggest beneficiary, the analysts said. After stalling earlier in the year, the company\u2019s market capitalization has jumped during the third quarter, rising from $61.5 billion at the end of June to $73.7 billion by late September, allowing it to command a little more than a quarter of the stablecoin market.<\/p>\n Meanwhile, Circle\u2019s chief rival Tether has seen its dominance recede, falling from 67.5% at the start of the year to 60.4%, the report said.\u00a0<\/p>\n But while the GENIUS Act could be giving Circle more momentum, the report said a more fragmented market could eventually benefit platforms such as Bullish<\/a> that offer liquidity services for an increasing slate of stablecoin issuers<\/a>.<\/p>\n Advertisement: Scroll to Continue<\/p>\n In other stablecoin news, PYMNTS spoke earlier this month with John Ainsworth<\/a>, general manager at Metallicus<\/a>; and\u202fJon Ungerland<\/a>, chief information officer of DaLand CUSO<\/a>, whose companies are helping St. Cloud Financial Credit Union in Minnesota launch its own digital coin.<\/p>\n The two offered a blunt warning to the community banking space: If members move liquidity to digital assets platforms that can also lend and settle payments through stablecoins, community institutions risk losing out.<\/p>\n