Stablecoins, tokenized assets gain as Trump tariffs loom
Cryptocurrency investors are increasingly moving capital into stablecoins and tokenized real-world assets (RWAs) in a bid to avoid volatility ahead of US President Donald Trump’s widely anticipated tariff announcement on April 2.
Increasingly more capital is flowing into stablecoins and the real-world asset (RWA) tokenization sector, which refers to financial products and tangible assets such as real estate and fine art minted on the blockchain.
“Stablecoins and RWAs continue to see steady inflows of capital as safe havens in the current uncertain market,” crypto intelligence platform IntoTheBlock wrote in a March 31 X post.
“However, because these assets reside on-chain, even slight shifts in sentiment can trigger significant price movements, driven by the lower barriers to reallocating capital in real time,” the firm noted.
Stablecoins, total market cap. Source: IntoTheBlock
The flight to safety is mainly attributed to geopolitical tensions and global trade concerns, according to Juan Pellicer, senior research analyst at IntoTheBlock:
“Many investors were expecting economic tailwinds following Trump’s inauguration as president, but increased geopolitical tensions, tariffs and general political uncertainty are making investors more cautious.”
“This is not unreasonable, as even though global growth forecasts remain positive, growth expectations have decreased globally in recent months,” he added.
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The prospect of a global trade war has heightened inflation-related concerns, causing a significant decline in both cryptocurrency and traditional equity markets.
S&P 500, BTC/USD, 1-day chart. Source: TradingView
Bitcoin (BTC) has fallen 19% and the S&P 500 (SPX) index has fallen over 7% in the two months since Trump announced import tariffs on Chinese goods on Jan. 20, the day of his inauguration as president.
The April 2 announcement is expected to detail reciprocal trade tariffs targeting top US trading partners. The measures aim to reduce the country’s estimated $1.2 trillion goods trade deficit and boost domestic manufacturing.
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Investor sentiment pressured by April 2 Trump tariff announcement
Global tariff fears and uncertainty around the upcoming announcement continue to pressure investor sentiment in global markets.
“Risk appetite remains muted amid tariff threats from President Trump and ongoing macro uncertainty,” Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo, told Cointelegraph.
Meanwhile, RWAs reached a new cumulative all-time high of over $17 billion on Feb. 3, and are currently less than 0.5% away from surpassing the $20 billion milestone, according to data from RWA.xyz.
RWA global market dashboard. Source: RWA.xyz
Some industry watchers said that Bitcoin’s lack of upside momentum may drive RWAs to a $50 billion all-time high before the end of 2025, as their increased liquidity will help RWAs attract a significant share of the $450 trillion global asset market.
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Two US Senators have introduced legislation aimed at cracking down on crypto fraud and scams by equipping law enforcement with better tools to spot attacks and identify perpetrators.
The Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE) Act, introduced by Democrat Elissa Slotkin and Republican Jerry Moran on Monday, seeks to coordinate action between the US Treasury, law enforcement, regulators and private sector players to tackle crypto fraud and scams.
“This task force, established by the SAFE Cryptocurrency Act, will allow us to draw upon every resource we have to combat fraud in digital assets,” Slotkin said, while Moran added:
“As cryptocurrency becomes more widely used, this legislation would help counter threats and make certain all Americans are better protected from crypto scams.”
The Federal Bureau of Investigation reported Americans lost $9.3 billion to crypto-related investment scams in 2024, marking a 66% increase from 2023. Individuals over 60 were the worst affected, accounting for losses of $2.84 billion.
It should be noted that the figure includes any investment scam that simply mentions crypto as part of its ploy. Many do not involve blockchain or cryptocurrencies.
Despite public and private efforts to raise awareness, crypto fraudsters and scammers have found more sophisticated ways to steal funds from investors.
However, Gabriel Shapiro, general counsel of crypto investment firm Delphi Labs, noted that a successful implementation of the SAFE Crypto Act could prompt crypto fraudsters and scammers into a state of panic .
“Scammers will probably end up shitting themselves if this goes hard,” Shapiro said in a post to X on Tuesday, noting that the attorney general, the director of the Financial Crimes Enforcement Network and the director of the United States Secret Service would be among the highest-ranking officials involved in pursuing crypto criminals.
Shapiro said the SAFE Crypto Act could be “very useful” as the US securities and commodity regulators currently aren’t as focused on enforcement action against hackers, scammers and Ponzi scheme operators.
TRM Labs among the private players to lend a hand
Blockchain forensic firm TRM Labs is among the private sector players ready to assist US officials, with its vice president and global head of policy, Ari Redbord, stating that a collaboration would help track and disrupt illicit networks in real-time:
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“By bringing industry and law enforcement together, we can meaningfully reduce criminals’ ability to exploit transformative technologies for harm.”
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Digital asset platform Exodus has partnered with MoonPay to launch a US dollar-backed stablecoin for everyday payments.
The Exodus Movement, which is also behind a popular crypto wallet, announced on Tuesday that its fully reserved dollar stablecoin is planned for launch in early 2026. The stablecoin will be issued and managed by MoonPay, a leading crypto payments platform and fiat on-ramp.
The stablecoin will be developed using M0, a stablecoin infrastructure platform that allows companies to build, issue and manage their own custom stablecoins.
The new stablecoin, which has not been named, aims to simplify digital dollar transactions for consumers without requiring crypto knowledge. It will integrate into Exodus Pay, allowing users to spend and send money while maintaining self-custody.
“Stablecoins are quickly becoming the simplest way for people to hold and move dollars onchain, but the experience still needs to meet the expectations set by today’s consumer apps,” said JP Richardson, co-founder and CEO of Exodus.
The stablecoin gold rush continues
MoonPay launched its enterprise stablecoin business in November to issue and manage digital dollars across multiple blockchains while integrating with M0’s open infrastructure.
“Enterprises want stablecoins that are programmable, interoperable and tailored to a specific product experience,” said Luca Prosperi, co-founder and CEO of M0.
Related: US banks could soon issue stablecoins under FDIC plan to implement GENIUS Act
Banks and crypto firms have rushed to offer their own stablecoins this year, spurred by the passage of the GENIUS Act in July, which introduced a clear federal regulatory framework for fiat-backed stablecoins in the United States.
The Trump family DeFi platform, World Liberty Financial, launched the USD1 stablecoin in March, global payments platform Stripe introduced stablecoin-based accounts to clients in over 100 countries in May, and Tether announced a regulatory-compliant stablecoin called USAT in September.
Two stablecoin players dominate the sector
The new Exodus and MoonPay stablecoin is entering a crowded market still dominated by two primary players.
Tether (USDT) remains the biggest stablecoin issuer with a market share of around 60% and a circulating supply of $186 billion, while Circle’s USDC is second with a 25% share and $78 billion market cap.
These two alone comprise 85% of the total stablecoin market capitalization, which is over $310 billion, according to CoinGecko.
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The UK is to rejoin the European Union’s Erasmus student exchange scheme, according to reports.
The popular programme, which allowed Britons to spend a year studying at European universities as part of their degree without paying extra fees and vice versa for their European counterparts, ended for British students after Brexit on 1 January 2021.
But ministers could announce the UK will rejoin Erasmus from January 2027 as soon as Wednesday, The Times and The Guardian have reported.
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Sir Keir Starmer promised a post-Brexit reset deal with Brussels and announced the government was working on rejoining the programme in May.
Negotiations have included work on “mutually agreed financial terms” for the UK and the EU.
The UK had pushed for a discount on membership fees, which are calculated on the basis of a country’s gross domestic product (GDP), The Times reported.
It said the EU is understood to have offered the government a 30% reduction of fees in the first year of membership.
Labour MP Darren Frith told Sky News’ Politics Hub he would “welcome” such a move.
The Guardian reported that as well as university-based study exchanges, British students will be able to participate in vocational training placements under the scheme.
Cabinet Office minister Nick Thomas-Symonds held talks with Maros Sefcovic, the European Commission’s trade lead, in Brussels last week.
A Cabinet Office spokesman said: “We are not commenting on ongoing talks.”
But the UK’s universities welcomed the apparent breakthrough.
Tim Bradshaw, chief executive of the Russell Group of leading universities, said: “We’re delighted at the UK’s association to Erasmus+.
“With an even greater scope than previous programmes, Erasmus+ opens up fantastic opportunities for students, adult learners and young people to all benefit from new experiences and learning.
“It will also renew the huge contributions that EU students and staff make to life on our university campuses.”
The Lib Dems, who have been campaigning to rejoin Erasmus, welcomed the news.
Leader Sir Ed Davey said: “This is a moment of real opportunity and a clear step towards repairing the disastrous Conservative Brexit deal.”
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