BlockBeats News, May 20th. Despite the significant growth in supply of non-dollar stablecoins over the past five years, their importance in the overall stablecoin market has not increased. According to Artemis data, as of April 2026, the total supply of non-dollar stablecoins such as Euro, Canadian Dollar, Yen, Singapore Dollar, etc., has increased from $261 million in May 2021 to approximately $771 million, but their market share has slightly decreased from 0.26% to 0.24%. This means that stablecoins pegged to the dollar occupy 99.76% of the market share.

In the traditional financial sector, the dominance of the dollar is slowly fading. The dollar's share of foreign exchange transactions is at 89%, foreign currency debt issuance at 61%, and global reserves at 57%, all of which have been declining over the past decade. But on-chain, the situation is quite the opposite.

The rise in US Treasury bond yields may further deepen this advantage. Dollar stablecoins are not only supported by the world's dominant currency but are also increasingly backed by the world's deepest short-term government debt market. The rising yields allow issuers holding US Treasury bonds to earn more reserve income, making the issuance of dollar stablecoins more profitable.

This Treasury bond advantage has become clear on-chain. According to RWA.xyz data, the tokenized US Treasury bonds have reached a scale of $15.4 billion, becoming the largest RWA asset class, while the total amount of tokenized non-US government bonds is only $1.4 billion. This means that the on-chain US Treasury bond market is approximately 11 times the size of all other government bond markets combined.

Coinbase's Global Head of Stablecoins, John Turner, explained at the CoinDesk Consensus conference that the dominant position of dollar stablecoins has early on formed a self-reinforcing cycle, "Liquidity brings trading volume, trading volume brings use cases, and use cases bring more liquidity." This flywheel effect is something that non-dollar stablecoin issuers have consistently been unable to kickstart.