President Donald Trump’s crypto bank launched a stablecoin this week , but tha’s not the only first in the flourishing sector worth watching. It may have been a bad week for crypto prices — bitcoin posted its first three-week decline of the year and ether dropped 5% in the week, its fifth weekly loss in the past six. But that may have masked a burst of positive developments in the world of stablecoins— that is, crypto that’s designed to hold a steady value and is pegged to another asset, like the U.S. dollar: Fidelity confirmed to CNBC that it’s “testing” its own stablecoin which, if eventually launched, would make it the first from a U.S. asset manager. Wyoming-based Custodia Bank became the first U.S. bank to issue a stablecoin on a public blockchain (the Ethereum network). Also in Wyoming, Governor Mark Gordon revealed new details about what would be the first state-issued stablecoin : It is gearing up for a July launch on multiple public networks, and is currently testing on Avalanche, Solana and Ethereum. Circle’s USDC became the first dollar-backed stablecoin approved for use in Japan . The House of Representatives released the full text of its proposed stablecoin oversight bill, the STABLE Act of 2025 , on the heels of the markup and approval of the Senate’s competing version. Activity in crypto’s stablecoin sector is ramping up as the industry grows increasingly confident that the crypto market will get its first piece of U.S. legislation passed and implemented this year, focusing on stablecoins. “Broadly speaking, what the industry is looking for is market structure,” Framework Ventures co-founder Michael Anderson told CNBC last week. “The truth of [the] matter is most of the issuers of stablecoins actually exist outside the U.S. What we want ultimately is for there to be a competitive landscape for all the different issuers and potentially new issuers that come up as well… We want it to be open, but we also want to know what the rules are.” Opening the door If legislation passes on Capitol Hill, it could open the door for even more players to jump into stablecoins. In February, Bank of America CEO Brian Moynihan said the Charlotte-based lender could introduce a stablecoin if regulation allows. JPMorgan has been exploring stablecoin development in the form of a digital token to settle transactions, while Goldman Sachs is working on its own tokenization strategy . Wells Fargo has been developing a U.S. dollar-linked stablecoin for internal settlement. Stablecoins are especially attractive to banks because they can be used to make payments faster, cheaper and more transparent. Further, PayPal has launched its own dollar-backed stablecoin (PYUSD), while Visa has been supporting stablecoin payments and Mastercard is backing stablecoin wallets and other crypto card programs . Stablecoins’ growth could have investment implications for crypto exchanges like Robinhood and Coinbase as they integrate more of them into crypto trading and cross-border transfers. Coinbase also has an agreement with Circle to share 50% of the revenue of its USDC stablecoin. Rapid growth The stablecoin market has grown about 11% so far this year and about 47% in the past year, and has become a “systemically important” part of the crypto market, according to Bernstein. Historically, digital assets in this sector have been used for trading and as collateral in decentralized finance (DeFi), and crypto investors watch them closely for evidence of demand, liquidity and activity in the market. More recently, however, rhetoric around stablecoins’ ability to help preserve U.S. dollar dominance – by exporting dollar utility internationally and ensuring demand for U.S. government debt, which backs nearly all dollar-denominated stablecoins – has grown louder. In the past month, President Trump and Treasury Secretary Scott Bessent have each touted this use of stablecoin, on separate occasions. “We are going to keep the U.S. dollar the dominant reserve currency in the world and we’re going to use stablecoins to do that,” Bessent said. Stablecoins are also viewed as the lowest hanging fruit for crypto legislation, which is why expectations are high for progress this year. “Stablecoins are seen as more politically easy to do in Congress but actually will be dramatically more impactful to the United States and the world than market structure” legislation, said Alex Thorn, head of firmwide research at Galaxy Digital, at the Digital Asset Summit in New York last week. “Who regulates who is important … if you’re one of the people that’s going to be regulated, but the stablecoin bill could solidify dollar dominance for 100 years.” Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. 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