Stablecoin Market Reaches $320 Billion, New Commercial Stack Emerges

The stablecoin market has grown exponentially, reaching an estimated $320 billion in market capitalization by the end of May 2026 and a transaction volume of $28 trillion in 2025. The Bank for International Settlements warns that much activity still relates to crypto trading and economically meaningful payment volumes are lower than headline on-chain figures.

A new commercial stack is forming around stablecoins, with different companies taking on specialized roles. One company can issue the monetary claim, another holds or manages the reserve assets, a wallet or exchange controls distribution, a payments company orchestrates conversions, and a regulated bank or trust company provides custody.

The emerging 'stablecoin bank' is often not a traditional bank at all but rather a network of specialized businesses sharing the economics of money movement. Business leaders are now debating whether stablecoins will create new revenue pools in payments, treasury, custody, and software, and which firms will own the highest-value parts of the chain.

Circle's Q1 2026 results show that reserve income can be substantial, with $652.5 million earned from reserves compared to $41.6 million of other revenue. However, distribution, transaction, and other costs were $406.8 million, highlighting the expense of accessing users.