Elon Musk crypto on the horizon? Stablecoins have a combined market cap exceeding $233 billion. Is it time for X to launch a pro-community Elon Musk stablecoin?
There are over 10 different stablecoins, all tracking the USD. As of February 25, 2025, all stablecoins combined had a cumulative market cap exceeding $233 billion, with USDT by Tether being the largest, commanding over 50% of the market share.
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Time For X To Launch A Stablecoin?
More stablecoins will likely be issued in the coming years as crypto gains adoption and issuers, following the lead of Tether and Circle, angle for massive profits. While lucrative, these profits don’t trickle down to USDT or USDC token holders unless they stake or engage in DeFi.
In a post on X, one analyst suggests that the social media platform, Elon Musk and X could consider launching their stablecoin to diversify their revenue stream. If they do, the best approach would be to release a more pro-community stablecoin, distributing yield directly to holders.
According to the analyst, launching a stablecoin aligns perfectly with Musk’s vision of transforming X into a payments platform. X currently boasts over 650 million monthly active users, 500 million of whom are outside the United States.
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A USD-tracking stablecoin would enable these hundreds of millions of users to make seamless payments in a low-cost environment. However, the speed of settlement and cost would depend on the chosen blockchain.
Most stablecoins are minted on Ethereum, its layer-2 networks, or Tron. A significant portion of USDC also circulates on Solana, which is the preferred stablecoin.
An X stablecoin would be a major initiative, positioning the popular social media platform as a serious competitor to Venmo, Cash App, and other traditional payment systems struggling to keep pace with the rapid rise of stablecoin adoption.
Beyond serving its vast user base, the stablecoin could also become a cash flow engine, much like it is for Tether. In 2024 alone, Tether generated over $13 billion in profits—a war chest fueling its aggressive expansion and diversification.
Tether is now involved in Bitcoin mining and initiatives to solidify its dominance in the crypto market.
Perfect Timing? Stablecoin Laws Being Drafted In the United States
If X pursues this path—much like it embraced the AI trend and eventually launched Grok—it could be among the first issuers to capitalize on the United States’ push to create clear stablecoin regulations.
Earlier this month, Senators Bill Hagerty and Tim Scott, alongside Representative French Hill, announced plans to develop a framework specifically for stablecoins and crypto assets.
The Guiding and Establishing National Innovation for United States Stablecoins Act (GENIUS) is among their proposals. It would mandate reserve requirements for stablecoin issuers and establish a board to oversee their activities.
For instance, stablecoins with a market cap exceeding $10 billion would be subject to direct Federal Reserve regulation, while non-bank issuers would be supervised by the Office of the Comptroller of the Currency (OCC).
Additionally, the Financial Innovation and Technology for the 21st Century Act (FIT21) Bill, passed by Congress in May 2024, aims to define clear oversight roles for the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
These agencies would be required to classify crypto assets properly. Currently, the SEC recognizes only Bitcoin as a commodity. Meanwhile, the CFTC extends this designation to Ethereum and Litecoin.
Because of this clarity, they are among some of the best cryptos to buy, explaining their huge market caps.
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Is it time for X and Elon Musk to launch a stablecoin?
- Total stablecoin market cap exceeds $233 billion
- Is it time for X and Elon Musk to launch a better stablecoin rewarding holders?
- Tether made over $13 billion in profits last year
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