TL;DR
- Stablecoins have surged past $260 billion, enabling over 4 billion people to hold and move USD on-chain without banks, outpacing any traditional fintech rail.
- Ethereum now settles more than $140 billion in stablecoins and $60 billion in DeFi assets, offering global accessibility, institutional-grade security, and censorship resistance.
- A powerful flywheel spins as minted stablecoins bolster DeFi collateral, driving ETH demand and staking, tightening supply, and attracting institutional capital, cementing Ethereum as the new financial backbone.
A major change is happening as stablecoins, which are digital tokens tied 1:1 to the U.S. dollar, exceed $260 billion in market value. For the first time ever, billions of people worldwide can hold U.S. dollars without a bank account, tapping into on-chain liquidity that moves faster than any payment rail ever built.
More than four billion users and countless businesses are seeking dollar access through stablecoins, driven by the need for seamless remittances, programmable finance, and yield opportunities that traditional banking simply cannot provide.
Stablecoins are spreading the dollar faster than any financial tech in history.
And Ethereum is becoming the financial backbone.
For Ethereum’s 10th birthday, we’re publishing our updated @ElectricCapital ETH thesis:
Remaking the Case for ETH 🧵
— mariaa.eth 🐸 (@MariaShen) July 8, 2025
Ethereum Emerges as the Digital Dollar Rail
At the heart of this revolution sits Ethereum. Its open, permissionless network has become the primary settlement layer for over $140 billion in stablecoins and tokenized real-world assets, alongside more than $60 billion locked in decentralized finance applications.
Unlike legacy payment systems siloed by geography and regulation, Ethereum offers global accessibility, institutional-grade security, and resistance to censorship. By serving as the rails for this new digital dollar economy, Ethereum is steadily assuming the reserve-asset role once held by government bonds and gold in traditional finance.
A Self-Reinforcing Growth Cycle
As stablecoin adoption accelerates, a powerful flywheel takes hold. Every new dollar minted on Ethereum often spills into DeFi protocols as collateral, boosting demand for ETH itself. More collateral means more staking, which strengthens network security and lowers the circulating supply.
This scarcity, combined with clearer regulatory frameworks, lures further institutional capital, creating a virtuous cycle of liquidity, yield generation, and protocol composability that promises to scale without the bottlenecks of conventional finance.
Leaving Rivals and Legacy Behind
No real competitor has matched Ethereum’s blend of programmability, decentralization, and developer momentum. Bitcoin lacks smart‐contract functionality, while other smart‐contract platforms struggle to rival Ethereum’s security pedigree. Meanwhile, banks and payment networks remain fragmented by local laws and legacy infrastructure.
As Maria Shen from Electric Capital wisely stated, “Stablecoins are spreading the dollar faster than any financial tech in history. Ethereum is becoming the financial backbone.” With programmable money finally coming of age, Ethereum stands poised to redefine how value moves around the globe.
