A newcomer to the stablecoin scene has just rewritten the history books. In under a year and a half, USDe locked in $10 billion worth of assets — faster than any other stablecoin on record.
The achievement wasn’t fueled by luck alone; it was powered by a sudden change in the U.S. regulatory environment that turned the stablecoin market on its head.
From Law to Opportunity
When the GENIUS Act — short for Guiding and Establishing National Innovation for U.S. Stablecoins — was passed in July 2025, it brought sweeping reforms. Issuers were told they needed full 1:1 reserves in safe assets, heavy federal oversight, and a plan to prioritize customers if anything went wrong. But hidden in the fine print was a clause that would upend the status quo: regulated stablecoins could no longer pay interest to their holders.
That single rule forced investors to look elsewhere for returns. CoinFund’s Chris Perkins predicted it would ignite a “DeFi summer on steroids” as trillions in stablecoins searched for new yield opportunities — many of them managed by AI-driven strategies in decentralized finance.
Why the Money Flowed to USDe
While traditional stablecoins like USDC suddenly found themselves unable to reward holders, USDe faced no such restriction. Operating within DeFi, Ethena Labs could still deliver competitive yields through its own vault strategies. Prominent trader Cas Abbé noted that this loophole redirected “big money” straight into USDe, helping it vault ahead of rivals.
ENA Token Rallies Alongside TVL Growth
The inflow of capital didn’t just inflate USDe’s TVL; it also sparked a surge in its governance token. ENA prices have more than doubled in the past month, as both retail and institutional players piled into the ecosystem.
A Different Kind of Regulatory Impact
The GENIUS Act was designed to tighten safeguards and create a safer stablecoin market. Ironically, it also gave a massive boost to yield-oriented DeFi projects like USDe. The stablecoin’s rapid rise shows that regulation doesn’t always choke innovation — sometimes, it creates entirely new winners.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/usde-becomes-fastest-stablecoin-to-hit-10b-tvl-fueled-by-new-u-s-law/