Despite remarkable growth in the stablecoin market over the past five years, stablecoins pegged to currencies other than the US dollar are still unable to alter the dominant landscape. According to Artemis data, the total supply of stablecoins linked to the euro, Canadian dollar, Japanese yen, Singapore dollar, and other major currencies grew from $261 million in May 2021 to $771 million in April 2026. However, their overall market share fell from 0.26% to 0.24%, while tokens backed by the US dollar now account for 99.76% of the entire stablecoin market.
The US dollar holds its international dominance
The US dollar has long maintained its commanding role in the global financial system. Currently, 89% of all foreign exchange transactions involve the dollar, 61% of international debt is denominated in dollars, and 57% of global currency reserves are held in dollars. While these figures have slipped slightly in the past decade, the dollar’s overall influence remains firmly entrenched.
Recently, rising yields on US Treasury bonds have provided fresh advantages for stablecoins pegged to the dollar. Issuers of these stablecoins typically invest their reserves in short-term US government bonds. As interest earnings have increased, stablecoin providers are able to generate higher revenues, giving them greater resources to invest in liquidity, distribution, and new partnerships.
Glossary: An RWA (Real World Asset) is a financial instrument from the traditional economy—such as government bonds, real estate, or mutual funds—that is digitized and represented on blockchain or crypto infrastructure. These assets serve as a bridge between conventional finance and the cryptocurrency ecosystem.
Massive gap in dollar-based RWA (real world asset) volumes
On-chain data shows that the value of tokenized US Treasury bonds has now reached $15.4 billion. This figure is eleven times greater than the combined value of all other tokenized government bonds worldwide. As a result, blockchain-based representations of US government debt far outstrip their competitors in both scale and liquidity. Since these assets form the foundation for stablecoins, tokens pegged to the dollar are rapidly widening the gap with their rivals.
Liquidity cycle and local currency constraints
The pronounced liquidity advantage of dollar-pegged stablecoins explains their ongoing market dominance. Other currencies without ample and reliable collateral pools find it difficult to reach a comparable scale or network effect.
John Turner, Coinbase’s Head of Stablecoins, addressed this dominance while speaking at the Consensus conference in Hong Kong:
The initial focus on liquidity created enduring advantages for everyone involved in this space. Where liquidity went, trading volume followed, new use cases emerged, and this generated additional liquidity. The impact of dollar-pegged stablecoins today is fueled by a virtuous cycle that most other currencies have yet to kickstart.
For most fiat currencies, cross-border use remains technically infeasible. The International Monetary Fund recognizes around 180 currencies worldwide, but only eight—including the dollar, euro, yen, pound sterling, Swiss franc, Canadian dollar, Australian dollar, and yuan—enjoy significant global liquidity. The vast majority are designed for use only within their home countries and have little or no international presence.
| Currency | Total Stablecoin Supply (April 2026) | Market Share |
|---|---|---|
| US Dollar | ~$317 billion | 99.76% |
| Euro, CAD, JPY, SGD, and others | $771 million | 0.24% |
In summary, stablecoins inherit the international reach of “major currencies,” even though most of the world’s currencies lack such global accessibility. As a result, only stablecoins linked to a handful of currencies offer significant potential for international growth and adoption.
