The Weekly - 2nd September 2025
Stablecoins - a stable trend
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Summary
In this edition, we cover:
Market rundown
The rate of stablecoin volume on-chain vs. other financial systems
Catalysts of further stablecoin adoption via Web2 integrations
Markets
Crypto markets officially closed August -0.5% in what has been a very contentious battle between buyers and sellers.
Ultimately, global market capitalisation found initial support at the April 2025 lows.
…while BTC found support at its $107k-$109k range (the resistance-turned-support area from Jan 2025 and May 2025) which looks to be an emerging H&S pattern…
Meanwhile, sentiment on social platforms remains bearish…
which echoes what Fear & Greed indices signal currently.
Finally, cycle top indicators that we track continue to be far from historical levels that have previously coincided with macro peaks in markets.
This aligns with the business cycle metrics being also not running hot at typical cycle peak levels.
Overall, investors are bracing for a deeper move lower while markets are at crucial, but opportunistic levels. Especially on a longer-term perspective.
Stablecoin Trends
Stablecoin supplies have surged to new all-time highs of $280B.
Ethereum is the home for the majority of stablecoin issuance at $91B (~33%).
YTD stablecoin transfer volume is already >$4T higher than Mastercard’s Jan-Sep volume on a pro-rata basis.
Stablecoins dominance vs. other financial rails has strengthened, particularly in the last 2 years.
This is the case even when you exclude MEV and intra-CEX transfers to focus more on "organic" transactions that reflect actual payment activity.
At the current pace, stablecoin volume could reasonably overtake ACH within 2-3 years.
We can reasonably expect this to be the case due to the continued integrations from financial infrastructure players.
Take Stripe.
Stripe enabled merchants to accept USDC for online transactions for customers from over 70 countries.
Stripe charges a 1.5% fee for USDC payments - a 30% discount compared to card payment fees.
This creates all the incentive for merchants and customers to opt into stablecoin payment methods, creating stickiness for users to stay on-chain rails.
Other platforms like Shopify can also use Stripe Connect to also offer stablecoin payment options to their merchants.
These integrations reduce cross-border transaction fees and friction, allowing merchants to tap into new markets and increase conversion rates by offering stablecoin payment options.
It’s a significant step in bridging traditional and decentralized finance.
More recently, Circle partnered with Finastra to enable USDC settlement for Finastra’s network of financial institutions, which processes over $5T in daily cross-border transactions.
Accelerated stablecoin adoption will catalyze further growth of DeFi.
Increased stablecoin liquidity will flow into DeFi protocols seeking yield-generating activities - including lending or liquidity provision.
And we can already measure the growing prominence of stablecoins within DeFi. DeFi has been the home of stablecoin transfer volumes over the past year at 42%, up from 30% two years prior.
Re7 in Media:
Trump’s World Liberty joins forces with Re7 — featured by Bloomberg.
Re7 Labs and World Liberty have launched the USD1 vault on Euler, bringing a $2B+ Treasury-backed stablecoin to DeFi with institutional-grade risk and cross-chain utility. A new standard for stable, transparent on-chain capital. Additionally, covered by Coindesk & Cointelegraph.
VMS Group Enters Crypto, choosing Re7 Capital as its Partner
Hong Kong’s VMS Group (~$4B AUM) has made its first allocation to digital assets, selecting Re7 Capital’s market-neutral DeFi strategies. The move reflects growing institutional demand for yield with risk-managed access to DeFi - covered by Bloomberg.
Re7 Capital featured in Bloomberg News
As the market rushes into crypto treasury plays, our founder Evgeny Gokhberg offers a more grounded perspective. Trading above NAV only makes sense when supported by a clearly defined, yield-generating strategy. Read the full article
Updates on Re7 Labs
Last week was another testament to our commitment to building a more robust and efficient DeFi ecosystem. We are thrilled to share some of the key milestones and developments from the Re7 Labs team.
Phase II is live on Plume. 2M $PLUME in rewards for depositing pUSD into Morpho vaults curated by Re7. Explore…
wstASTR by Astake is now powering on-chain lending. Vault curated by Re7 allows ASTR users to access lending and borrowing markets with wstASTR on Morpho. Explore…
The hwHLP Frontier Market on Euler is about to get upgraded. Risk management is being transferred to Re7. Explore…
More than $83m is being curated by Re7 on TAC. Compared to uncurated lending (often 2-5% lower APYs with higher risks), Re7's approach adds TAC reward multipliers (like 3.5x on tacETH) and zero incidents to date. Explore…
Make sure to join Re7 Labs Alpha Telegram channel for more DeFi vault announcements this week
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