The "Warring States Period" of Stablecoins: Four Major Forces Competing for Digital Dollar Hegemony

In 2025, the United States passed the GENIUS Act, completely changing the game for stablecoins and triggering an unprecedented "digital dollar competition." Let's take a look at the four main players in this new era.

GENIUS Act: New Rules of the Game

The full name of the GENIUS Act is "Guidance and Establishment of the National Stablecoin Innovation Act of the United States," which sets clear rules for the stablecoin industry:

• Reserves must be fully supported 1:1.
• A market value of 10 billion USD is a regulatory watershed.
• Direct payment of interest is prohibited.
• Set entry barriers for large technology companies

Overview of the Four Major Forces

1. Compliant Honor Roll Alliance (USDC)

With USDC issued by Circle as the core, it strictly adheres to regulatory requirements, earning the trust of regulators and institutional investors. However, there is a conflict of interest in the profit distribution between Circle and its main distributor, Coinbase, and Circle is seeking to enhance its independence through means such as going public.

2. Offshore Empire (USDT)

With Tether's USDT at its core, it has leveraged its first-mover advantage and flexible strategies to dominate the global market. In response to new legislation, a dual-track strategy has been adopted: maintaining the existing USDT services for the global market while developing a compliant new coin for the U.S. market.

3. Political elite group (USD1)

An emerging but highly controversial alliance, backed by political influence and capital strength. Members include the Trump family, Binance, and the UAE sovereign fund. It quickly opens up markets through political connections and sovereign-level transactions, but also faces political risks.

4. The Counterattack of Traditional Banks

Traditional banks represented by JPMorgan Chase have launched tokenized deposit products, such as JPMD. These products can legally pay interest and enjoy the backing of bank credit, but are mainly aimed at institutional clients.

Strategies of Other Participants

• Stripe: Provides infrastructure for "stablecoin as a service"
• PayPal: Attract users with high "loyalty rewards"
• Walmart and Amazon: Restricted by regulations, may seek to collaborate with existing issuers.
• Meta: Cautious return, focusing on practical payment scenarios

Future Outlook

The market may show a divergent trend:

• Institutional Market: Deposit tokens from bank alliances may dominate
• US Retail Market: The USDC alliance may continue to lead
• Emerging Markets: The USDT Alliance may maintain an advantage.
• Special political driving scenario: the USD1 alliance may play a unique role

The battle of stablecoins is not only a competition of technology and business models, but also a contest of different financial philosophies and governance models. For users, this competition drives innovation, improves service quality, and brings more choices. The era of digital dollars has arrived, let us witness this wonderful "Romance of the Four Kingdoms" together.