Three-way contest for stablecoin supremacy unfolds between mUSD, digital euro, and AxCNH
- MetaMask’s mUSD launched in mid-September, aiming to streamline on-chain payments with wallet-level issuance.
- The European Union’s digital euro initiative is set for legislative progress in early 2026, focusing on reducing reliance on foreign card networks.
- Hong Kong’s offshore yuan token AxCNH has been launched under a local stablecoin regime aimed at facilitating trade settlements.
- Cross-border payments could reach $2 to $4 trillion annually if just one to two percent of global transactions shift to tokenized systems.
- Current market capitalization for dollar-pegged stablecoins stands at approximately $291.7 billion, with Tether holding a dominant share of about 59 percent.
The competition among mUSD, the digital euro, and AxCNH highlights the growing focus on stablecoins as viable options for real-world settlements in cross-border payments, which could significantly impact the financial landscape.
With the potential for annual on-chain payments reaching up to $4 trillion, the race for the first trillion-dollar stablecoin is intensifying as regulatory frameworks evolve across regions. (Source)
