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Canada’s Stablecoin Strategy: Taking on U.S. Dollar Dominance in the Wake of the 2025 Crash

Canada’s Stablecoin Strategy: Taking on U.S. Dollar Dominance in the Wake of the 2025 Crash

Bitget-RWA2025/11/19 09:38
By:Bitget-RWA

- Canada's 2025 budget grants Bank of Canada authority to regulate stablecoins, challenging USD dominance in crypto markets. - October crash saw $1.58B stablecoin inflows to Binance and Ethereum's record 24,192 TPS, highlighting market volatility and network strain. - U.S. regulators intensified enforcement, charging crypto ATM operator with $10M money laundering amid global scrutiny of stablecoin risks. - Circle's USDC saw $9.6T Q3 transaction volume and $73.7B circulation, demonstrating stablecoins' resi

The cryptocurrency crash in October 2025 sparked a worldwide reassessment of stablecoins, often referred to as "digital dollars" that form the foundation of much of the crypto market. As

plunged to $90,000—a 28% decrease from its highest value—both regulators and investors began to question how well stablecoins could withstand such shocks, as their performance varied during the crisis. The turmoil prompted swift policy action, with Canada taking a leading role in redefining the stablecoin sector.

Canada’s national government has just approved a budget that

, representing a major change in how these assets are supervised. This initiative is designed to tackle issues related to financial stability and competition, especially since U.S. dollar-backed stablecoins like Tether’s and Circle’s continue to dominate the global market. gain more influence in the digital currency arena, particularly as other regions such as the European Union work to strengthen their own stablecoin frameworks.

Data from October 2025 illustrates the market’s turbulence. Binance

during the downturn, while reached an all-time high of 24,192 transactions per second (TPS), indicating both network strain and possible accumulation by long-term holders. At the same time, raised alarms about a wider market meltdown, with BlackRock’s IBIT ETF losing $1.26 billion in value throughout November.

Canada’s Stablecoin Strategy: Taking on U.S. Dollar Dominance in the Wake of the 2025 Crash image 0
Regulatory attention also intensified. an inquiry into Donald Trump’s connections with , a company associated with crypto operations. Meanwhile, , the founder of a crypto ATM business in Chicago, on charges of laundering $10 million in illegal proceeds, highlighting the government’s increasing enforcement efforts.

Amid the upheaval, certain stablecoin providers excelled.

for Q3 2025, with its stablecoin supply reaching $73.7 billion—a 40% increase from the previous year. CEO Jeremy Allaire described these achievements as proof of USDC’s importance in creating the “Economic OS for the internet,” though he also noted that operational expenses are rising.

Progress in innovation continued. Wirex and

using USDC and EURC, allowing 7 million users to make direct blockchain transactions. In addition, , a cross-chain version of its regulated USDG stablecoin, to boost dollar liquidity across Hyperliquid, Plume, and using LayerZero’s OFT protocol. These advances underscore the drive to make stablecoins more adaptable and compatible across platforms.

The crash has also led to reflection within the industry.

for the network to “ossify” to reduce bugs and focus on stability, echoing widespread concerns about the vulnerability of crypto systems. Likewise, for stablecoins, with the firm acquiring $46 million worth of Circle shares as it anticipates a long-term rebound.

As the situation stabilizes, the events of October 2025 stand as a warning. Stablecoins remain central to the crypto world, but their continued success will depend on clear regulations, robust technology, and sustained market trust—factors that will shape the next era of digital assets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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