The war for stablecoins is now on!

Chainalysis predicted that Bitcoin would be dwarfed in 2021 by a cryptocurrency more flexible and business-friendly. Naturally, they were talking about stablecoins. Stablecoins are a legitimate instrument for global finance. They have evolved quickly from a niche trading tool.

The US Senate Banking Committee will meet this year. has prioritised Stablecoin Legislation, supporting legal and legit dollar-pegged stabilizecoins while calling for an permanent ban on Central Bank Digital Currency. This will ensure that stablecoins are aligned to US financial priorities.

In a recent Digital Money report, the US Department of Treasury predicted that the stablecoin market will grow from its current worth of about $254 billion in 2028 to more than $2 trillion. report (April 2025).

The big corporate players such as JP Morgan Bank of America Visa, PayPal and Stripe are all jumping on board, posing a threat to the Blockchain OGs. These pioneers have long fought for decentralisation and financial inclusion. Tether, a market leader in the sector, announced their Q1 earnings recently. profits in excess of $1 billion, Includes $149B of assets and $5.6B in excess reserve.

This is the core of this interview with Michelle O’Connor, TaxBit’s Global VP of Global Market Expansion and Innovation, a Top  5 Woman in Blockchain, Chief Strategy Officer and Board Chairwoman for The Association of Women in Crypto, and the US Ambassador for the Global Blockchain Business Council.

Cryptography’s silent workhorses

“Stablecoins have long been the quiet workhorses of the digital asset world—reliable, liquid, and often overlooked,” O’Connor said. “But those are long gone.” Stablecoins are the most important crypto topic today. With daily transactions worth billions and increasing scrutiny from institutions and policy makers alike, stablecoins are the most talked about.

TaxBit’s VP expressed concern about who would control stablecoins in the future. “It’s not just about use cases anymore—it’s about infrastructure and power, and who controls the rails of tomorrow’s financial system.”

She thinks that Ripple’s USD-backed Stablecoin launch is a signal to the crypto community of what they can expect. It is a sign of a bigger shift, said she, and that they will be the first to use programmable currencies and the next battleground for fintech and financial companies.

The new battleground for stablecoin

O’Connor noted that, “Just a couple of years ago, crypto’s dominant narrative revolved about DeFi protocols and NFT booms. “But as the dust settles from the speculative cycles, what’s left standing—and growing—is the demand for stable, composable, and interoperable digital dollars,” she added. “The foundational infrastructure layer is the stablecoin layer.”

O’Connor said that stablecoins provide the trust and liquidity required for real-world application without requiring the user to hold volatile assets. 

“They are the bridge between traditional finance and the blockchain-based future in many ways, a bridge still under construction today – and the question is who will own it?” She asked.

They’re now interested

The VP of Blockchain Technology said that stablecoins will play a key role in the way money is moved across public and permissioned chains. TaxBitCrypto tax and accounting solutions for businesses, governments and individuals that are compliant with APIs.

“Regulatory frameworks are beginning to shape up in the US. “With regulatory frameworks beginning to take shape in the US.

Financial giants scramble to grab their stake. O’Connor says that Tether and Circle, although they may be the first to market, will not be alone. Already, the bigwigs have begun to lurk. She added that the next wave of M&A is inevitable and won’t be limited to crypto firms buying other crypto firms.

The web is under threat of extinction

Expect traditional financial institutions, tech giants, and private equity to move. Why? Because owning the infrastructure layer—the wallets, the rails, the issuance, the APIs—is the equivalent of owning the operating system for the future of digital finance.”

Michelle’s remarks are a similar wake-up call to Kevin Rusher, RAAC, and his thoughts about DeFi.

Many in blockchain and crypto have long feared an institutional takeover similar to that of the Dot-Com period in the early days on the internet. Governments are keeping a close eye. Institutions test. “The public sector is beginning to recognize the value of alternatives to legacy rails, particularly in emerging markets,” O’Connor explains.

“Think Stripe when you think of stablecoins. Or AWS for tokenised dollars. She warned that this was where the industry is heading, and if crypto and blockchain natives didn’t move quickly they would be overtaken.

“The stablecoin story is no longer niche—it’s macro. She concluded, “We’re talking about a potential reshaping the global payment system, modernisation of financial systems, and a brand new model of monetary sovereignty in the digital world.”