SS #101 - How Stablecoins Tripled to $300B

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Stablecoin supply tripled to $300B in a year, and the win for regulatory clarity is also a quiet concentration story where two issuers now move enough T-bills to make Treasury markets care what happens in a crypto redemption shock.

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In Today's Edition:

• Headline: How Stablecoins Tripled to $300B

• Quick Bites: Zerohash Secures MiCA License for Stablecoin Service

• Yield of the Week: Alpha USDT Prime's 10.96% APY

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HEADLINE

State of play: Stablecoin supply tripled past $300B in twelve months through a convergence of regulatory clarity, institutional issuance, and a crypto market rebound that pulled dollar-linked liquidity back into the system.

• USDT scaled on offshore exchange demand while USDC grew through bank and corporate compliance rails.

• MiCA, pending US reserve rules, and frameworks in Singapore, Japan, and the UAE unlocked institutional participation.

• Issuer reserves now make stablecoins a meaningful bid in the T-bill market, creating a feedback loop into traditional finance.

What’s Next: Stablecoins are no longer a crypto-native sideshow. At $300B, issuers are a structural bid in the T-bill market and a parallel dollar settlement rail competing with correspondent banking.

Why it Matters: The growth story is real but the concentration risk is underpriced. Two issuers hold most of the supply, reserve verification is uneven, and a redemption shock would ripple straight into Treasury markets. Regulatory clarity is the floor, not the ceiling.

Our Take: Watch US stablecoin legislation finalize reserve and transparency standards, and track whether non-USD stablecoins gain real traction as sovereigns push back on dollar-rail dominance.

QUICK BITES

• Bernstein says Clarity Act yield compromise cements Circle's edge.

• How the stablecoin market tripled from $100B to $300B in one year.

• Tether invests in LemFi to expand USDT settlement across Africa and Asia.

• South Korea's KB Financial completes stablecoin pilot for offline payments.

• Zerohash secures license under MiCA for stablecoin & brokerage services in EU.

YIELD OF THE WEEK

Alpha USDT Prime: 10.96% APY

• The vault accepts USDT0 deposits on HyperEVM and allocates capital across selected lending markets within the AlphaPing ecosystem, with ~$4.28M in total deposits and ~$522.05k in available liquidity.

• Capital is fully deployed into a single AVLT/USDT0 market at 91.5% LTV with 100% relative cap, running at 87.82% utilization with a 7.06% base market APY.

• Yield is generated from lending demand in the AVLT collateral market, with a base vault APY of 6.33% boosted by 4.63% in USDC incentives, net of a 10% performance fee and 0% management fee.

msY (Main Street Yield): 12.00% APY

• The vault accepts USDC deposits and deploys capital into short-duration, laddered box spread positions across multiple expiries and strike ranges, generating market-neutral USD-denominated yield with ~$73.13M in AUM.

• Capital is deployed into box spreads on options markets, structured to have effectively no delta or gamma exposure, with positions laddered across expiries to smooth returns and limit mark-to-market swings.

• Yield is generated from institutional box spread funding rates on options markets, accruing automatically through token price appreciation at a 12.00% APY.

Alpha USDC Delta V2: 9.20% APY

• The vault accepts USDC deposits and deploys capital into delta-neutral strategies targeting funding spreads, basis trades, and market inefficiencies, with ~$25.49M in total deposits and ~$2.89M in available liquidity.

• Capital is fully allocated into a single msY/USDC market at 86% LTV with 100% relative cap, running at 89.87% utilization with a 10.28% market APY.

• Yield is generated from delta-neutral arbitrage across spot and derivatives markets, delivering a 9.20% net APY after a 10% performance fee and 0% management fee.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.