While nearly the entire $300 billion global stash of stablecoins is tied to US fiat currency, Stabolut, a creator of yield-bearing versions of the asset, sees a “huge and growing market” in non-dollar alternatives.
Stabolut Bets on Global Stablecoins as Yield-Bearing Market Heats Up
2 October 2025 - 14:23 CEST
Some 99.5% of pegged coins follow the greenback, notably USDC issued by Circle and USDT issued by Tether. Stebolut CEO Eneko Knorr’s vision is focused on looking beyond these, noting that “more than 40% of the debt in the world is non-US dollar, more than half of the GDP in the world is outside the US,” in an interview at Korea Blockchain Week in late September.
He, and his co-founder Julian Beltran, believe that’s where the opportunity lies.
Regulatory steps: US vs EU
According to Knorr, the game-changer for stablecoins has been the course-reversal that the US government has taken since President Trump took office.
“Today, the US is the best country in terms of regulation for crypto,” he said. The transition of the US to being “crypto-friendly” has also been accompanied by an important aspect: in the new digital financial market, people will be conducting transactions with stablecoins. Knorr views the US mentality as critical: “you need to push stablecoins” to make a currency relevant, he said.
Europe, however, has taken a different stance. “The euro is almost nothing to the stablecoin industry, and instead of helping euro stablecoins, they are making things difficult,” he said, adding that MiCA regulation in the European Union is “really bad” for stablecoins.
In Knorr’s opinion, over-regulation has negatively impacted local currencies; he wants to see more encouragement for development and growth from the EU towards the industry around crypto and stablecoins.
Stablecoins that pay
Stabolut is focused in an area that is not ‘standard’ for most stablecoin companies: yield bearing stablecoins. These are coins that “automatically generate passive income for holders just while sitting in your crypto wallet,” according to the company website. The company also states that “a yield-bearing stablecoin gives holders a hedge against inflation by letting you earn money on your crypto holdings.”
In a March 2025 report, JP Morgan analysts forecast that yield-bearing stablecoins could rise to around 50% of the stablecoin market.
Stabolut’s flagship product is USB, a yield-bearing product that is pegged to the dollar. Alongside USB, Stabolut aims to release euro-, pound-, yen-, won- and yuan-backed stablecoins within the next two months. Knorr anticipates that the euro-backed coin has significant potential for immediate short-term growth but notes that stablecoins are overlooked in all these markets and anticipates global expansion.
“Totally disruptive in the financial industry”
The gap between TradFi and DeFi is closing fast, according to Knorr.
Where previously there was a clear delineation between the two spaces, everything now overlaps more. There are “banks offering crypto, and crypto companies offering banking services,” Knorr remarked. What’s even more interesting, he finds, is that stablecoins are being integrated “even faster than we were expecting” into the traditional financial system. Big banks are increasingly recognizing that stablecoins are the most effective and efficient manner to transfer money overseas.
For Knorr, the disruption that stablecoin technology brings is remarkable, and the speed at which it is being adopted even more so.
Trust as currency
As Stabolut is looking to grow, Knorr emphasized the importance of the foundation of trust for a financial product, in both the TradFi and DeFi spaces. It’s something that Stabolut aspires for with users, investors and business partners, he said.
Stabolut is talking to investors, traditional banking institutions, and the largest DeFi protocols, to create a currency of trust and a user base to build on.
“We want our stablecoins to be used everywhere – not only in the crypto world, but also in traditional finance,” he said.
