Stablecoins: The New Breed of Digital Dollars

Contribution by Peter

The stablecoin market has truly come of age—you only need to look at the heavyweight players entering the space. Fidelity has launched its own dollar stablecoin. BlackRock’s on-chain money market fund, with the less-than-poetic name BUIDL, now holds two billion dollars. And Custodia Bank has become the first regulated U.S. bank to issue dollar deposits on Ethereum. Eight meticulously executed transactions. Cautious, yet, as founder Caitlin Long says, historic.

To put things in perspective, all USD stablecoins combined are now valued at roughly $235 billion—more than Ethereum’s entire market cap. Stablecoins have outgrown their niche status to become the killer app of crypto. With the advantages of speed, low cost, global accessibility, and backing from established names, the main concern for companies and regulators—trust—is rapidly fading.

Yet, if you take a step back, the implications run even deeper. The involvement of Fidelity, BlackRock, and Custodia signals a turning point. Stablecoins are no longer a rebellious innovation from the fringes; they’re now an extension of the traditional financial system—more of a takeover than a revolution.

What JPMorgan once cautiously flirted with through its JPM Coin is now being scaled up. BlackRock is placing government bonds on the blockchain. Fidelity is tokenizing the dollar. Custodia is linking bank accounts to Ethereum. And all of this is happening under the watchful eye of the U.S. government, which recently stated that stablecoins can play a vital role in dollar distribution—a counterpart to the digital yuan and even a geopolitical tool.

Crypto czar David Sacks sees stablecoins creating ‘trillions’ in demand for Treasuries - Ledger Insights - blockchain for enterprise

Yesterday White House crypto and AI czar, David Sacks, held a press conference to announce that Agriculture and Finance/Banking Committees of both the

Ledger Insights - blockchain for enterpriseLedger Insights

Is this good news for crypto?

It depends.

Yes, it confirms that blockchain technology is now taken seriously, that the infrastructure works, and there is genuine demand. But it also marks the beginning of the battle over rules, standards, and control of on-chain money.

Stablecoins are essentially digital dollars—they rely on banks, regulations, and a degree of oversight that comes with measured censorship. While they share similarities with crypto, they operate under very different principles. That’s acceptable as long as we recognize what it is: a digital dollar, not digital freedom.

And that’s precisely why bitcoin remains indispensable. Bitcoin isn’t a promise made by an institution; it’s a protocol. It offers digital ownership, not digital credit. It’s not a unit of account imposed on you, but a network that no one can take away.

Stablecoins are convenient, efficient, and full of promise—but relying solely on them still traps you in a digital framework. They may be well-regulated, but they can still be a trap.

As always, the conclusion remains: zero remains the wrong number.

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