The Battle for Stable Coin Dominance Begins

KEY POINTS:

• A new generation of stable coins is emerging, and they’re not pegged to the US dollar

• Digital tokens backed by national currencies, such as the Chinese Yuan and Russian Ruble, are making waves in the crypto market.

• Economic uncertainty surrounding the US economy has investors seeking alternative currencies to store their digital assets.

• The value of the U.S. dollar against other currencies dropped about 11% in the first half of 2025.

• Morgan Stanley Research estimates the U.S. currency could lose another 10% by the end of 2026.

  
  

Unsurprisingly, given the current geopolitical climate, both China and Russia have made moves that could reshape the global stable coin ecosystem and challenge the dollar’s dominance in crypto markets. As superpower nation states explore alternatives to dollar hegemony in global trade, private issuers are building infrastructure to reflect this shift on-chain. 

From new Ruble-pegged stablecoins like RUBx to Yuan-backed assets championed by Chinese tech giants, a multi-currency stablecoin ecosystem is taking shape, one that could reduce reliance on the dollar in crypto transactions, especially in cross-border and decentralized finance (DeFi) use cases. The question is, why has the industry taken so long? An 11% devaluation over two quarters could well be the answer.

Russian State Announces Ruble Stable Coin Launch

Russia’s state-backed tech conglomerate Rostec announced plans last week to issue a ruble-pegged stablecoin, RUBx, on the Tron (TRX) blockchain. The asset, backed 1:1 by the Russian ruble, will be integrated into Rostec’s proprietary payment infrastructure, RT-Pay, with security auditing provided by Certik. This initiative is being framed as a way to support “import substitution” and enhance the domestic payments environment amid Western financial sanctions. The RUBx launch signals a growing desire for blockchain-based alternatives to SWIFT and USD rails.

China Makes Ambitious Stable Coin Statement Aligned with Regions Tech Giants

Reports are now emerging that a collective of Chinese tech giants, including Alibaba, Tencent, and JD.com, is backing a new yuan-pegged stablecoin initiative that would offer a direct challenge to USDT in regional trade. The project seeks to integrate yuan-backed stablecoins into consumer apps, e-commerce platforms, and even cross-border payment channels aligned with the Belt and Road Initiative.

China already boasts one of the world’s most advanced CBDC pilots (e-CNY). The private sector’s enthusiasm for stablecoin applications, however, may reflect growing demand for decentralized and programmable money within Asia’s commercial corridors.

Non-USD Stable Coins Will Continue to Gain Momentum with "Adoption-Phase" now in the Rear View Mirror.

While USD-backed stablecoins like USDT and USDC remain dominant, recent moves by China and Russia highlight growing demand for alternative stablecoin pegs. Factors driving this trend include:

• A desire for monetary sovereignty in cross-border trade

• The increasing politicization of USD-denominated systems

• Efforts to support regional trade ecosystems (e.g., BRICS, ASEAN)

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Emerging stablecoins backed by the Euro (EURS, Japanese Yen (GYEN), and now Ruble and Yuan offer currency diversity in DeFi and could attract institutions, especially in regions wary of US influence.

Where to Buy Non-USD Stable Coins?

Polygon is the preferred blockchain for non-USD stablecoins, representing a whopping 70% of the market. The protocol is purpose-built for seamless swapping between stablecoins of different fiat denominations, offering capital efficiency, low slippage, and compliance tooling for institutions.

What Does This Mean For The Crypto Industry?

The surge in non-USD stablecoins reflects a broader evolution: crypto paradigms are breaking. If initiatives like RUBx and a Chinese yuan stablecoin gain traction, they could eventually pressure U.S.-centric infrastructure and encourage more neutral, decentralized alternatives. Moreover, platforms that facilitate seamless stablecoin conversion, especially across fiat types, may become core primitives in the next era of DeFi and digital commerce.

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