May 2025 was a landmark month that saw the stablecoin market reach new heights amid Bitcoin's surge to $111,960. In May, Tether became the first stablecoin to cross $150B, new politically-backed entrants achieved rapid growth, and significant regulatory developments unfolded across multiple jurisdictions.
- USDT Market Cap Crosses $150B: In May, the market capitalization of Tether USD (USDT) rose 3.12% to $153B, becoming the first stablecoin to surpass the $150B milestone and marking its twenty-first consecutive month of growth. USDT's market share by capitalization also strengthened, rising to 62.1% - the first increase in six months.
- USDT Surpasses Germany in Exposure to US Treasuries: Tether released its latest reserves report revealing approximately $115B in exposure to U.S. treasuries, largely concentrated in Treasury bills with maturities under 90 days. This puts Tether ahead of several sovereign nations in terms of U.S. treasury ownership, including the UAE and Germany, according to Federal Reserve data.
- USD1 Becomes the Seventh Largest Stablecoin: The market capitalization of USD1, backed by Trump's World Liberty Financial, reached $2.15B in May, making it the seventh largest stablecoin by market cap. The stablecoin surpassed the $1B milestone in just three days, making USD1 the second fastest stablecoin to reach this milestone, trailing only Fei USD.
