Stablecoin issuers Circle and Tether are emerging as the main beneficiaries of the neobank expansion in emerging markets, despite the profitability struggles of the neobanks themselves. Circle’s USDC market cap reached approximately $75 billion in early 2025, a 73% year-on-year increase. Together, USDC and USDT dominate the fiat-backed stablecoin market, which grew roughly 46% year-on-year in 2025. About 76% of neobanks remain unprofitable, primarily due to modest interchange fees (1 to 2%) and high customer acquisition costs. Circle secured an OCC national trust bank charter, a first for any major stablecoin issuer, while Tether plans to launch USAT through Anchorage Digital Bank.
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