The market capitalization of stablecoins on the Solana layer-1 blockchain surged by $900 million over a 24-hour period on Tuesday.
Stablecoins, blockchain tokens backed by fiat currency or debt assets, surged to a market cap of $15.3 billion on the Solana network, according to DefiLlama.
The dramatic surge came as decentralized finance platform Jupiter launched its JupUSD stablecoin, developed in partnership with synthetic stablecoin issuer Ethena.
Solana’s stablecoin ecosystem is dominated by Circle’s USDC (USDC), a dollar-pegged token, which accounts for over 67% of the network’s total stablecoin market cap.
The surge in stablecoins on Solana reflects heightened investment activity and investor interest, as the Solana ecosystem shifts toward becoming a hub of Internet capital markets, where value and risk are transferred entirely through onchain rails.
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Stablecoins become critical plumbing as assets move onchain
Stablecoin settlement volume increased by 87% in 2025, according to financial rating agency Moody’s Investors Service.
Stablecoins are critical infrastructure for tokenized real-world assets (RWAs), which are physical or traditional assets represented onchain, Moody’s said. Tokenized RWAs require stablecoins for onchain liquidity and settlement.
Tokenizing assets opens new use cases, like being able to use traditionally illiquid asset classes such as art, real estate and collectibles as backing collateral for loans in DeFI applications.
The RWA market is projected to surge to $30 trillion by 2030, according to several traditional financial institutions.
Stablecoins are among the leaders of that growth. The total market cap of fiat-backed stablecoins — tokens backed 1:1 by fiat cash deposits and government debt securities — is nearing $300 billion, according to RWA.xyz.
Under the GENIUS Act, which was signed into law by US President Donald Trump in July 2025, regulated payment stablecoins must be backed on a one-to-one basis with high-quality liquid assets, effectively excluding algorithmic or under-collateralized models.
Algorithmic stablecoins, which use software or complex market trades to maintain their fiat currency pegs, are not recognized under the GENIUS Act.
The GENIUS Act also prohibits stablecoin issuers from sharing yield directly with customers, a provision that has created debate about the future role of banks.
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Cointelegraph by Vince Quill