Stablecoins, digital tokens backed by secure assets like bank deposits, have seen significant growth, particularly in the U.S. where dollar-backed stablecoins increased from $1 billion in 2019 to over $300 billion. This surge is attributed to rising demand and the implementation of the Genius Act of 2025. These tokens offer instant cross-border transfers and a stable alternative to volatile cryptocurrencies, potentially challenging traditional banking systems. In Europe, euro-backed stablecoins are still in their infancy with circulation under €350 million. The introduction of the MiCA regulation in 2024 led to the delisting of over 14 billion non-compliant tokens, including Tether’s USDT, causing notable market disruptions. These developments highlight the evolving landscape of stablecoins amid regulatory shifts.