Stablecoins Capture Up to 75% of Crypto Revenue as Competition Heats Up

Stablecoin issuers continue to capture the majority of crypto protocol revenue, consistently accounting for 60% to 75% of total daily earnings across major sectors such as lending, decentralized exchanges, and blockchain infrastructure.

The figures reaffirm stablecoins’ role as the most profitable vertical in the digital asset space, serving as the backbone of liquidity and collateral across the ecosystem.

Tether’s Profitability Sets Industry Benchmark

Tether, the issuer of USDT, remains the industry’s profit leader, with CEO Paolo Ardoino revealing that the company is on track to earn $15 billion in 2025 – boasting a staggering 99% profit margin. Its business model centers on earning yield from reserve assets such as U.S. Treasuries and cash equivalents, with the interest retained rather than paid to users.

The GENIUS Act, enacted in July, formalized this model by banning licensed stablecoin issuers from paying interest to holders, ensuring that payment stablecoins function as digital cash, not investment vehicles.

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Rising Competition Spurs Innovation

Still, competition in the sector is heating up. The synthetic dollar USDe has climbed to become the third-largest stablecoin, drawing users with its yield-bearing design. Meanwhile, Coinbase has started offering 3.85% APY on USDC holdings – a move that sidesteps the GENIUS Act’s restrictions by letting an exchange, not the issuer, provide rewards.

As Tether works to expand its USAT product – a U.S.-regulated, dollar-backed counterpart to USDT – stablecoin providers are entering a new phase of competition, one defined less by dominance and more by innovation in user incentives and regulatory compliance.