The crypto landscape is shifting rapidly, and one thing stands out: exchanges are no longer just adding stablecoins; they’re building their entire strategies around them. The digital dollar, in the form of USD-backed stablecoins, has quietly become the backbone of how people actually use crypto.
The use of stablecoins goes beyond just trading. They’re becoming essential tools for cross-border payments, remittances, and day-to-day transactions, particularly in regions where access to traditional banking is limited. For everyday users, especially those who value speed and privacy, managing their funds through a crypto wallet without verification allows them to stay in control without having to go through complex KYC processes. This kind of exchange is all about simplicity, which is why many users like it.
The Dominance of USD-Backed Stablecoins
The US dollar already is the dominant currency in traditional finance globally, so naturally, dollar-backed tokens would dominate in crypto as well. They are familiar, reliable, and make things feel a little less complicated, especially for everyday users.
Exchanges lean into this because users trust it. Whether it’s buying the first token or moving millions, people like knowing the value of what they hold won’t suddenly crash overnight.
Traders, on the other hand, want stability when they are not actively trading. They want to park their money somewhere safe between trades. They want to avoid the uncertain swings that the crypto market is known for. Dollar-backed stablecoins give them exactly that. All of these contribute to why stablecoins make up about 90% of the market, with a potential for more market share.
How Exchanges Are Embracing Stablecoins as Business Strategy
Smart exchanges saw this coming early. They didn’t just list stablecoins; they built their entire platforms around them, so much so that now it’s hard to imagine crypto trading without them.
Consider how trading pairs work today. Almost every crypto can be traded against USDT or USDC. This wasn’t always the case. In the early days (around 2014-2018), most altcoins traded against Bitcoin (BTC). This means users had to trade through BTC to get to other coins. Starting around 2018/2019, exchanges began listing USDT pairs more widely. By 2021, USDT had overtaken BTC as the most used base pair across many exchanges. Since they make money from trading fees, more trading means more fees, which means more revenue.
From a user experience standpoint, stablecoins make everything easier. Users can move from crypto to ‘cash’ (stablecoins) instantly. No bank transfers. No waiting periods. Just click and trade.
Some exchanges go even further, offering interest on stablecoin deposits, lending services, and yield farming opportunities. The digital dollar isn’t limited to trading anymore; it’s also a tool for earning.
The business model is clear. Keep users on the platform by giving them dollar-denominated products they trust. Make it easy to stay in the crypto ecosystem without touching traditional banks.
Institutional and Regulatory Signals
Big players are taking notice. Tether, developer of USDT, claims it was the seventh-largest net purchaser of U.S. Treasuries in 2024, buying $33.1 billion worth to back its stablecoin reserves. When a crypto company becomes one of America’s biggest Treasury buyers, that gets attention.
Regulations are also getting clearer. The US Securities and Exchange Commission (SEC) released a statement in April 2025 stating that certain stablecoins are not considered securities under US law. Major US crypto firms like Circle, BitGo, Coinbase, and Paxos are also pursuing bank licenses. This isn’t happening by accident. It’s happening because stablecoins are becoming too big to ignore.
The UK is also not left out. It recently released consultation papers on crypto legislation, creating new regulated activities like operating a crypto exchange and stablecoin issuance. This implies governments aren’t trying to kill stablecoins; they’re trying to regulate them properly.
The UK’s Role in the Stablecoin Ecosystem
In the UK, stablecoins are starting to play a bigger role, although not as much as in the US. A few local projects are experimenting with GBP-backed coins, but most exchanges, even UK-based ones, still rely heavily on USDT and USDC. There’s more liquidity there, and users are already familiar with them.
The UK is positioning itself to become a crypto-friendly hub, and stablecoins are part of that strategy. It is planning to collaborate with private stakeholders on a proposed regulatory framework for stablecoins. The Bank of England is also working on a digital pound, a central bank digital currency (CBDC). But that’s different from stablecoins.
The digital pound would be government money. Stablecoins are private money backed by government bonds. Both can exist together. Competition between different forms of digital dollars could make the whole system better.
The Network Effect Takes Hold
Something powerful is happening with stablecoins: the network effect. The more people use USDT and USDC, the more valuable they become to everyone else. It’s like how everyone uses WhatsApp because everyone else uses WhatsApp.
As of June 2025, USDC is natively supported on 21 blockchain networks, including Ethereum, Arbitrum, Avalanche, Base, Polygon, and Solana. This isn’t just technical integration; it’s gradually building the infrastructure for global digital dollar adoption.
Exchanges benefit from this network effect. The bigger the stablecoin ecosystem gets, the more trading happens on their platforms. More trading means more fees. More fees mean bigger profits.
Users benefit too. With stablecoins available on so many networks, they can move money quickly and cheaply between different blockchain systems.
The crypto industry is building around the digital dollar because it works. It gives traders stability, exchanges profitability, and regulators something they can understand and control.