Stablecoin Wars: Infrastructure Competition and Their Rise as Major U.S. Treasury Holders

Imagine a world by year-end where the top four holders of U.S. Treasuries are Japan, China, the UK — and the Stablecoin group! As competition heats up in the stablecoin infrastructure space, their dual role in revolutionizing payments and reshaping traditional finance is becoming impossible to ignore.

The stablecoin market continues its explosive growth, now exceeding $200 billion in market capitalization, with predictions of reaching $500 billion by the end of 2025. As these digital assets transform from niche crypto products to mainstream financial instruments, they’re creating ripples throughout the global financial ecosystem.

Major Market Movements

MoonPay’s Strategic Acquisition
MoonPay just acquired Iron, an API-driven stablecoin infrastructure startup, marking their second major acquisition in two months. CEO Ivan Soto-Wright called this their “Braintree moment,” positioning the company to offer businesses instant, low-cost borderless stablecoin transactions.

Moonpay has also partnered (last summer) with Mesh, a different Stablecoin player, who raised $82 million Series B funding a few days ago. This is an additional milestone in the Stablecoin space — a funding settled using PayPal USD (PYUSD) stablecoin. Mesh is focused on offering seamless crypto-to-stablecoin conversions at the point of sale.