Stable News: Trump, Japan, and the $225 billion boom

We are pleased to present another edition of Stable News, our newsletter written by Co-Founder and CEO, Caio Barbosa, now also published here on the blog. This is your weekly source for news, insights, and strategic moves in the world of stablecoins and the digital financial ecosystem.

This week, we explore how events in the United States, Japan, and other parts of the world continue to reinforce the role of stablecoins as key players in a new economic era. From Donald Trump to DeFi innovation, check out the highlights below.

Reading time: 6 min

Trump’s USD1 enters the stablecoin game

On Tuesday, March 25, World Liberty Financial, a company linked to current U.S. President Donald Trump, announced USD1, a stablecoin pegged to the dollar.

This is no small move: after raising more than $500 million with a native token in private sales last month, the group—led by Trump—has decided to go all-in on the crypto market. USD1 is launching with a promise to be 100% backed by short-term U.S. Treasury bonds, dollar deposits, and cash equivalents. And the timing is no coincidence: it comes on the heels of the GENIUS Act advancing in the Senate, paving the way for stablecoins in the U.S.

Analysts already suggest this could be a strategy to strengthen the dollar's dominance in the digital world. I can’t help but think about how this will shake up the institutional game, especially with other major moves from companies like Moonpay and Stripe that I mentioned last week. But in summary, what does this launch mean?

✅ Trump as a global spokesperson: With the U.S. president—who was once against crypto—now pushing USD1, it could serve as a trust seal for investors worldwide, particularly in countries where stablecoins still face regulatory skepticism.

✅ Dollar dominance: Stablecoins pegged to the USD, such as USDT and USDC, already account for 98% of global crypto transactions, according to Chainalysis. Trump’s USD1 aims to reinforce this hegemony, especially with its backing in U.S. Treasury securities. Direct political support from the White House could further widen the gap between USD-backed stablecoins and other global alternatives.

✅ Pressure on rivals: The political weight behind USD1 might force giants like Tether and Circle to rethink their strategies—perhaps leading to a fee war or a race for partnerships with local governments to maintain market share.

We’re curious to see where this move will take us—a president openly endorsing a stablecoin is, at the very least, a major story.

USDC launches in Japan: First approved global stablecoin

Circle is set to officially launch the first stablecoin in Japan through SBI VC Trade after two years of negotiations with local regulators. On March 4, the Financial Services Agency (FSA) gave the green light, making USDC the first globally recognized dollar-backed stablecoin in the country—a market known for its cautious approach to crypto assets.

Exchanges like Binance Japan, Bitbank, and BitFlyer have already announced they will list the asset in the coming days, and Circle Japan KK is strengthening its local operations with strategic partnerships. In a Japan where the yen has weakened (trading at 152 per dollar yesterday), USDC could be more than just a digital asset—it’s a hedge against inflation. Why does this matter?

✅ Asian expansion beyond Japan: With USDC now regulated in Japan, regional exchanges may accelerate stablecoin adoption, creating a digital financial corridor connecting East Asia to the rest of the world.

✅ An alternative to the yen: With the yen losing 25% of its value over the past three years, according to the Bank of Japan, USDC could attract local businesses and investors as a stable store of value, potentially shifting some demand away from physical dollars in Japan’s market.

✅ Geopolitical chessboard: As China and the U.S. continue their tech rivalry, USDC’s entry into Japan is another strategic move. Meanwhile, Beijing remains stalled with its crypto ban and the slow adoption of its digital yuan. The U.S., on the other hand, strengthens its influence in the Asian market with a regulated asset.

Stablecoin supply reaches $225 billion

The growth of stablecoins is undeniable: according to Glassnode, the global supply jumped from $138 billion to $225 billion in a year—an impressive 63% increase. In February alone, 30 million active users moved these assets, and last week, another $20 billion flowed into the market. A curious highlight comes from Kenya, where apps like Sling Money are using stablecoins to bring financial inclusion to communities without access to traditional banks—an example that also resonates in Latin America. But what does this really indicate?

✅ Optimism in the air: Analysts at Cointelegraph see this growth as a sign of confidence, even amid crypto volatility, which saw a 15% swing since January.

✅ Effect on Bitcoin: Reports from Arcane Research show that an increase in stablecoin supply often coincides with Bitcoin price rallies, reflecting higher liquidity in the market. With the FOMC (Federal Open Market Committee) meeting happening tomorrow, March 27, we’ll see if this trend holds.

✅ Tether vs. USDC: Although USDT leads with $142 billion in supply, USDC—with $59.7 billion and strong regulatory backing—could gain market share if the GENIUS Act and approvals like Japan’s become global standards, setting the stage for a major battle in 2025.

The boom isn’t stopping, and stablecoins are increasingly taking center stage in global finance.

Yield-Bearing Stablecoins

Recently, Tarun Gupta, CEO of Coinshift, shared an interesting thought: yield-bearing stablecoins could become the foundation of a new financial architecture. In an interview with Decrypt, he highlighted csUSDL, a stablecoin that uses Paxos USDL and the Morpho protocol to offer passive yield—entirely through smart contracts, without relying on company promises. Gupta believes that with proper regulation (like the GENIUS Act or Abu Dhabi’s policies), this model could bring trillions on-chain, merging the best of traditional finance with DeFi. Why pay attention to this?

✅ Profits with security: csUSDL, which has already distributed $1.2 million in profits over six months through Morpho, demonstrates how stablecoins can generate returns while maintaining stability—something banks and DeFi platforms are watching closely.

✅ Regulation as a catalyst: Gupta cites the GENIUS Act and Abu Dhabi’s approach—where 35% of crypto transactions already use regulated stablecoins—as examples of how clear rules can unlock billions in institutional capital for this market.

✅ Transformational scale: With $205 billion in stablecoins today, Coinshift projects that yield-bearing assets could capture 10% of the global fixed-income market—around $12 trillion—within five years, according to Gupta’s vision.

Stablecoins not only preserving value but also generating returns is an idea that excites us. It’s also something we’re developing internally at Lumx, so stay tuned for our updates.

We’ve arrived at MERGE Argentina!

Today, this edition of Stable News comes straight from Buenos Aires, Argentina. Our Co-Founder and CEO, Caio Barbosa, and our Head of Institutional Sales & Public Affairs, Nathaly Diniz, arrived over the weekend to prepare for a packed agenda of events, side events, meetings, and networking throughout the city.

The schedule is non-stop, and just yesterday, we hosted a Lumx side event with amazing partners such as Sphere, Arex Activos Digitales, Utila, and Sumsub.

Soon, we’ll reveal more about this experience and the key topics discussed during the week.

The stablecoin universe continues its rapid expansion—with direct involvement from global leaders, historic regulatory advancements, and new financial return models. Stable News remains your go-to source for the latest insights and movements in this ever-evolving ecosystem.

Thank you for following our journey.
See you in the next edition!