Stablecoin Recap May 11–18, 2026: Stablecoin Market Update: USDY Leads Inflows

The total stablecoin market cap increased from $327.4 billion to $328.72 billion, a rise of $1.32 billion or 0.4%. During the same week, the Bank of England reconsidered its strict stablecoin regime, and the market experienced modest growth.

Ondo US Dollar Yield, a yield-bearing dollar-denominated token, led the inflows with $0.55 billion. USDtb followed with an inflow of $0.45 billion, while Ethena USDe added $0.37 billion. USDC experienced an outflow of $0.737 billion. Global Dollar and Ethena Staked USDe decreased by $0.129 billion and $0.102 billion, respectively. Societe Generale deployed stablecoins on Canton for tokenized finance during this period.

USDT ended the week with a dominance of 57.7%, a decrease of 0.19 percentage points. USDC's dominance fell by 0.32 percentage points to 23.4%. USD1 experienced a depeg, reaching a low of $1.032, 3.2% off its peg. Regulatory developments included the Bank of England's reconsideration of its stablecoin regime, which could impact issuers operating under UK jurisdiction. Augustus received conditional OCC approval for its AI and stablecoin bank.

Circle's stock rallied by 15% during a week when JPMorgan announced plans to launch a tokenized money market fund for stablecoin issuers. Solayer introduced a Visa-compatible card for USDC payments, expanding the utility of stablecoins in everyday transactions. Arkham mapped Iran central bank wallets following a $344 million USDT freeze.

Jitters on oil and bond markets were noted as US-Iran peace talks stalled, contributing to broader market uncertainty. No directly relevant macro developments were recorded this week.