Usde Reaches Historic Milestone of $10 Billion in Just 500 Days
The stablecoin market has witnessed a significant milestone with Usde reaching a total value of $10 billion in a mere 500 days, making it the fastest stablecoin to achieve this feat in history. This remarkable growth can be attributed to the innovative approach of Etena Labs, the protocol behind Usde. As the team at Etena Labs noted, “Everyone would like to know what we would say if we have not reached $10 billion.” However, with this achievement, it’s clear that their strategy has paid off.
The rapid rise of Usde coincides with the adoption of the Stablecoin Act, a comprehensive federal framework for stablecoins in the United States. This legislation, which comes into effect on July 18, 2025, introduces strict new rules, including 1:1 reserve requirements for low-risk assets, robust federal supervision for large issuers, and heavy consumer protection measures. One of the key provisions of the act is the ban on regulated issuers paying returns on stablecoins, which has significantly impacted the market.
The Impact of the Stablecoin Act on the Market
According to Chris Perkins, President of Coinfund, the ban on paying returns on stablecoins has led to a profound realignment in the market. As he explained to Cryptoslate, “Under the Stablecoin Act, stablecoins do not pay interest to end-users, and without interest, stablecoins are depreciating assets. So, holders will seek yield. And that’s where DeFi comes in.” This shift has created opportunities for DeFi-native protocols like Ethena Labs to attract capital and offer lucrative returns, driving the growth of Usde.
Cas Abbé, a prominent crypto trader, also noted that the approval of the Stablecoin Act has been a key factor in the growth of Usde. “The reason for this growth is the approval of the Stablecoin Act, which forbids issuers from delivering stablecoin returns. As a result, big money has now shifted to Usde, which delivers a lucrative return.” This influx of capital has not only driven the growth of Usde but also led to a significant increase in the price of the ENA Governance Token, which has risen by over 100% in the last month.
DeFi Yield Opportunities Fuel Demand
The continued earnings offers from Ethena Labs, which falls outside the restrictions placed on state-monitored issuers, have attracted a massive inflow of institutional and retail capital. This demand has driven Usde beyond many of its competitors, making it a leader in the stablecoin market. The milestone of $10 billion is a testament to the dramatic impact of the Stablecoin Act on the market, creating opportunities for innovative protocols to thrive and offer attractive returns to investors.
In conclusion, the growth of Usde to $10 billion in just 500 days is a significant achievement, driven by the innovative approach of Ethena Labs and the impact of the Stablecoin Act on the market. As the stablecoin landscape continues to evolve, it’s clear that regulatory changes can create opportunities for DeFi-native protocols to flourish, driving innovation and growth in the industry.
